Avio shares rise on the stock market following the agreement with Lockheed Martin

(Il Sole 24 Ore Radiocor) - Avio is in the spotlight on the Milan Stock Exchange, buoyed by the announcement of a cooperation agreement with Lockheed Martin for the production of solid-propellant engines, approximately one year after the signing of the first term sheet between the two groups regarding the operations of the Italian company’s future plant in the United States, in Hurt, Virginia.

The strategic partnership agreement between Avio and Lockheed Martin was announced on Tuesday after the markets had closed and follows on from the non-binding term sheet signed in November 2025, which provided the US group with preferential access to part of the production capacity at Avio’s future US plant. Once the qualification process has been completed, the partnership will initially focus on the production of solid-propellant rocket engines at Avio’s new plant in Virginia.

Analysts at Intermonte welcomed the announcement, describing it as ‘positive and strategically significant’, and emphasising that ‘for the first time, the agreement identifies two specific programmes on which Avio and Lockheed Martin intend to collaborate’. According to SIM’s estimates, Lockheed Martin’s programmes could account for almost half of the initial production capacity of the new US plant. “Today’s news does not alter our estimates, but it significantly improves visibility regarding the utilisation rate of the plant currently under construction”, the experts clarified, adding that, should Avio secure contracts for further defence programmes, “this would increase the likelihood that an expansion of production capacity would be necessary, with investments aimed at doubling it”. Intermonte confirms its ‘Outperform’ rating on Avio shares, with a target price of 39 euros. Analysts at Banca Akros also welcomed the announcement and have therefore reiterated their ‘Buy’ recommendation and a target price of 40 euros, double the current share price.