Jan. 12 at 2:46 PM
$AVVSY $RKLB $ASTS $PL
Italian Space stock AVIO undervalued compared to US peers. Investment thesis part 1:
Avio S.p.A. is one of Italy’s most important aerospace companies, specializing in space launchers and propulsion systems for both space and defense markets. It is best known for the Vega family of launch vehicles (especially the medium-lift Vega C) and for producing key solid rocket motors used in European launchers like Ariane and Vega. Avio also develops propulsion systems for tactical missiles. 
Key activities include:
• Launching satellites into orbit with its Vega and Vega C rockets.
• Designing and producing propulsion systems — solid, liquid, and cryogenic.
• Being the prime contractor of Vega launchers and a major supplier in the Ariane rocket family. 
Avio is increasingly commercializing Vega launches and expanding internationally. 
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🚀 Major Recent Developments (2025–Early 2026)
📈 Business & Financial Growth
• Avio approved a major €400 million capital increase to fund expansion in space launch services and defense propulsion — including new manufacturing capacity in Italy and the U.S. — and reported rising revenues and order backlog. 
• The Board confirmed strong 9-month 2025 performance with growth in orders and profit. 
🇺🇸 U.S. Expansion & Rocket Motor Facility
• Avio’s U.S. subsidiary, Avio USA, selected Virginia for a new solid rocket motor manufacturing plant — a planned ~
$500 million investment to build motors for defense propulsion and commercial space. This project may create ~1,500 jobs and underpin Avio’s U.S. industrial footprint. 
• The move is part of broader partnerships including nonbinding agreements with U.S. defense primes like Lockheed Martin and Raytheon. 
🇪🇺 Launch Contracts & ESA Work
• Avio won multiple launch contracts for its Vega C launcher under ESA and commercial initiatives, strengthening its role as a European launch provider. 
• It signed two separate Vega C launch service agreements valued at over €100 million in December 2025 for customers in Europe and beyond. 
🔧 Defense & Propulsion Partnerships
• The company is expanding propulsion work with the U.S. defense industry, including engineering work on the Raytheon Standard Missile Mk 104 rocket motor — a key weapon-system engine — marking Avio’s deeper role in the defense supply chain. 
