Avio signs two agreements in the US with Lockeed and Raytheon in the defence sector
The development of the Italian group's US operations prompted Equita to upgrade its rating to 'Buy'
Avio's double agreement in the USA with Lockheed Martin and Raytheon in view of the construction of the production site that the Colleferro-based company, specialised in space launchers, intends to develop in order to enter the American defence market. While waiting for the site to take shape, with work scheduled to start next year and finish in 2028, Avio signed a non-binding termsheet with Lockheed Martin that foresees preferential access to part of the production capacity of Avio USA's plant, so as to satisfy the growing demand and, at the same time, strengthen the production capacity and reliability of the US supply chain for engines destined for tactical and strategic products.
The parties, reports a note, will soon negotiate a strategic cooperation agreement with the aim of ensuring a stable and efficient supply of high-performance propulsion systems. The investment in the new plant in the US is a key element of the launcher and missile propulsion group's 10-year industrial strategy.
A similar agreement was signed between Avio and Raytheon. The strategic partnership follows the already existing collaboration between the two companies, which started with the contract signed in July 2024 on the preliminary engineering activities carried out on the Mk104 engine, and continued with the recent purchase order to support the project up to the Critical Design Review phase and for the purchase of materials with a long lead time for qualification.
Avio USA's new plant 'will allow us to bring our proven expertise in solid propulsion to the United States, contributing innovation to the development of a strategic industrial supply chain,' said Avio CEO Giulio Ranzo.
With the development of activities in the US, Equita Sim analysts upgraded the rating to 'Buy' i as it 'brings about a change in the valuation paradigm'.
