Key insights
- Avio's shares rose over 5% following a strategic cooperation agreement with Lockheed Martin to expand solid rocket motor (SRM) production in the U.S. Avio will invest over $500 million in a new facility in Virginia, securing a portion of its capacity for Lockheed Martin's missile programs. Analysts view this deal as a significant milestone for Avio's long-term plan, potentially absorbing up to 50% of the new plant's capacity.
Investing.com -- Avio shares jumped more than 5% after the company announced a strategic cooperation agreement with Lockheed Martin to expand solid rocket motor (SRM) production in the U.S. The agreement was announced at the AUSA Annual Meeting 2026.
The collaboration will focus on producing solid rocket motors for the Extended Range GMLRS and Precision Strike Missile programs after qualification. Production will take place at Avio USA’s facility in Hurt, Virginia, and the agreement will give Lockheed Martin access to a portion of Avio’s supply capacity for these programs.
Avio has committed over $500 million in investment for new solid rocket motor production capacity in the U.S., according to Giulio Ranzo, Chief Executive Officer of Avio.
"A reliable and diverse supply chain for solid rocket motors is fundamental to our strategy for a stronger defense industrial base," said Tim Cahill, president of Lockheed Martin Missiles and Fire Control.
Analysts at Kepler Cheuvreux said that the qualification phase for solid rocket motors is expected to start in Italy, followed by production at the new $500 million Avio plant in Virginia. They see the deal absorbing up to 50% of the new U.S. plant capacity. "This agreement is a milestone towards Avio’s 2035 plan target, to which we are aligned," the analysts wrote.
Avio USA is a subsidiary of Avio S.p.A., headquartered in Arlington, Virginia. The parent company is an international aerospace group with more than 50 years of experience in space launchers and propulsion systems, employing over 1,500 personnel across Italy, France, the United States and French Guiana.
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