from Vega rockets to anti-missile systems – Corriere.it

Defense, i.e. anti-missile missiles to be mounted on ships. But also sustainability, i.e. methane engines for the new launchers that carry satellites into space. They are the two levers of Avio which in Colleferro, in Lazio, diversifies and ushers in a new phase. The board of directors will be held on May 9, with the results for the first quarter of 2023, of the space technology group which closed last year with revenues of 357.3 million (+14.6% from 2021), operating margin gross of 21.4 million (-28.6%) and order backlog growing by 16% to one billion. «The record orders are confirmed and the results are in line with expectations, with many new elements – says the CEO Giulio Ranzo – new projects and an avalanche of orders both in space and in Defense».

The acquisitions

Avio develops the Vega launchers, for low orbits, which carry satellites above all for earth observation (customers of ESA and the EU Commission); and engines for Ariane, the European launcher that travels in orbits above 700 kilometers carrying satellites for telecommunications or logistics (customers such as Tim, Google, Amazon). Last year he took over the Milanese Temis, avionics, and intends to continue: «We are open to acquisitions of supply chain companies with minority stakes» says Ranzo. Which counts a lot on the growth in defensive weapons: «Defense covers around 15% of revenues, we want to reach 25% in three to four years».

The Mbda client

There is one customer, Mbda: the consortium between Airbus and Bae Systems (37.5% each) with a 25% shareholder Leonardo, which owns 29.63% of Avio. What does it mean? That Avio supplies – it has been producing them for a few weeks – the engines for the new Camm-er anti-aircraft missiles, which Mbda produces. «The Camm-ers have entered production», says Ranzo. They will help replenish arsenals in Europe, declining following the war in Ukraine. They are «defensive weapons», of course. But produced in the perspective of an exacerbation of international conflicts. «It is clear that everywhere there is an arms race – says Ranzo -. A year ago we thought war was an electronic fact, but it’s like a hundred years ago, with people and trenches. Russia is using conventional weapons». The latest contract with Mbda is worth 90 million. It adds up to “another hundred million in the last 12 months”.

The stock market and investors

For Avio, Defense is a diversification of risk – always to be considered in space launchers – at a time when the Stock Exchange does not seek risk. Although recovering, Avio shares lost 5.11% from January to 4 May. Likely consequence of Vega C December 20 launch failure, which slowed down the work (the 2023 guidance therefore forecasts, according to observers, revenues falling to 330-350 million; but net profit would double to 2.6 million). Ranzo was elected to his third term with 86% of the votes in the assembly held on April 28, with Roberto Italia as president and Giovanni Gorno Tempini as vice. With Defense, he also hopes to attract private investorsalready growing in a group that from 2015 to today has risen from 750 to 1,200 employees and has become a symbol of Italian hi-tech.

The shareholders and the Pnrr

The shareholding emerged at the meeting sees alongside Leonardo the Spanish Cobas Am, which rose to 7.4%, and the Italian Cgn which grew to 6.24%. The share of managers, united in InOrbit, also increased from 3.7% to 4.1%. The Delfin of the Del Vecchios is stable at 3.7% while Space Holding, the spac that brought Avio to the Stock Exchange, fell from 5.6% to 4.2% (4.14% are treasury shares and 41% is floating). «The shareholder base has strengthened – says Ranzo -. Avio has once again become attractive for private individuals, from a long-term perspective». The fact that top executives have agreed to a stock-based compensation plan is seen as a sign of confidence. And the decision to increase the aerospace budget of both ESA (+17% to 16.9 billion for the next three years) and the Italian government (+35% from 2019 to 3.1 billion) will certainly help ). «Italy has made the political choice to invest much more in space – says Ranzo – A decision by the Draghi executive confirmed by the government in office. This is how jobs and growth are generated».

Ecological engines

The other hook for Avio Phase 2 is the Pnrr, with funds for ecological engines. «There are over 400 million destined for new propulsion technologies, where we are first in Europe – says Ranzo -. We have successfully tested the first European liquid methane and liquid oxygen stage engine. We will make a prototype rocket and two experimental flights by 2026». The green engine is the M10, which «paves the way for a new generation of launchers». One is the Vega E, expected to debut “at the beginning of 2026”. The other is the Ifd, In-flight demonstrator: a «shorter and lighter rocket, which will carry more weight. The electronics will be managed by the software and the structure is in composite material, the tank in carbon». Launchers will therefore be able to carry more satellites for the same thrust. Furthermore, this technology would allow part of the rocket to be reused. “In November, ESA financed us for the return of objects from space,” says Ranzo. The novelty adds to the financing, with the Pnrr, to Avio and Thales Alenia of the module that recovers the rubbish in orbit. It is expected by 2026.

Subscribe to the newsletter of The Economy

Whatever it Takes by Federico Fubini

The challenges for the economy and markets in an unstable world

Europe Matters by Francesca Basso and Viviana Mazza

Europe, the United States and Italy that count, with innovations and important decisions, but also small important stories

One More Thing by Massimo Sideri

From the world of science and technological innovation the news that changes our lives (more than we think)

And don’t forget the newsletters
The Economy Opinions and the Economy 6 pm