Indra Sistemas Sa Stock Earnings Reports

Indra reported solid 9M 2025 results driven by Defense and Air Traffic Management (ATM), with revenues up ~6%, EBITDA and EBIT up ~10%, and net profit of EUR 290–291m (materially higher year-on-year, helped by TESS consolidation). Backlog and order intake grew double-digit (backlog +35%, intake +20%), and management expects the defense backlog to exceed EUR 10bn in 2026 driven largely by Spain's Special Modernization Programs (PEMs) and other international programs. The company is accelerating its industrial expansion (new production lines, several Spanish hubs, a Kansas plant in the US), plans to invest heavily in R&D (8–10% of revenue in 2025) and CapEx (~EUR 150m in Spain, EUR 100m in the US over next 2 years), and is scaling up its AI platform IndraMind (dual-use civil/military). Management reiterates 2025 guidance and expects FY2025 free cash flow > EUR 300m, with net debt remaining near neutral (net debt/EBITDA ~0.2x) and average gross debt cost reduced to ~3.2%. They plan a Capital Markets Day in 2Q26 to present the next phase of the strategy and a roadmap to reach EUR 10bn revenue before 2030 (management indicates the target timing may be accelerated toward 2028). Key operational notes: Defense and ATM now account for >50% of group EBITDA; strong domestic sourcing (77% of defense procurement from Spanish suppliers) and large hiring plans (3,000+ hires in Spain over 3 years).