Indra reduces its profit to 59 million but increases revenue, especially in defense.

The multinational Indra's profits fell by 3% in the first quarter of 2025 (compared to the same period in 2024), reaching €59 million , a circumstance that the company has justified by "higher financial expenses and taxes."

This is reflected in the results presented to shareholders today, which otherwise show an increase in revenue, backlog, and hiring. In fact, according to the group's CEO, José Vicente de los Mozos, current performance paves the way for achieving the target of €10 billion in revenue "before planned"—that is, by 2030.

Despite this, the market reacted poorly to the presentation of these accounts. Shares of the company chaired by Ángel Escribano opened trading with a decline of nearly 2%, which subsequently widened to over 4%. However, it should be noted that Indra shares had just experienced an upward rally— they have doubled in value since the beginning of March—boosted by the forecast of increased defense spending and the change in management.

Regarding revenue, there was improvement in all of the group's divisions, although the defense sector clearly stands out. In a context of geopolitical instability and a new European roadmap for military spending , Indra saw a sensational 18% increase in revenue from its arms business.

Meanwhile, the ATM (air traffic management systems) sector saw revenues increase by 2%, and Minsait —the technology subsidiary that management tried to sell in the past —increased by 1%. The only business that remained stable in terms of revenue was Mobility.

Across all segments, revenue increased 4.2% year-over-year, to €1.164 billion. This growth figure is slightly lower than that recorded in 2024, a fact that the company justifies by the lower one-time contribution from the "Elections" business. Due to its participation in technological deployment in electoral processes, the multinational generated €9 million in revenue in the first quarter, compared to €36 million in 2024. "Excluding the Elections business," the press release reads, "total revenue would have registered growth of 7%, while Minsait's revenue would have increased by 5%, both in reported terms."

Another significant factor affecting results was exchange rates, which reduced revenue by €13 million (-1.2pp). This is explained by currency depreciation in Brazil, Mexico, and Colombia, as it should be noted that the Americas account for 20% of the multinational's activity. The remaining activity is primarily distributed in Spain, which accounted for 51% of all operations in January-March 2024. Specifically, revenue grew by 12% in Europe, 4% in the Americas, and 7% in Spain.

In these first three months, excluding the inorganic contribution from acquisitions and the exchange rate effect, revenue increased by 3%, with growth in defense of 15%, Minsait of 1%, and ATM of 0.2%.

As previously reported, the portfolio showed a significant improvement, reaching €8.003 billion, an 11% increase compared to the same period last year. In turn, the portfolio-to-sales ratio for the last twelve months stood at 1.64x versus 1.58x in the same months last year.

Net order intake, in turn, increased by 17%, with strong growth across all divisions, especially in Mobility, thanks to contracts in Ireland and Colombia, the United Kingdom (for air navigation radars), and Spain. The defense business also boosted contract intake, mainly—the company explains—due to radar contracts in Germany and F110 frigates in the United States.

Regarding EBITDA, in the first three months of 2025 it stood at 10.7%, a slight improvement compared to the 10.4% recorded in the same period last year. This brings absolute growth to 7%, an improvement that the company once again explains primarily due to the higher revenue growth in the arms business, which is the sector with the highest operating profitability.

EBIT, on the other hand, stood at €95 million , a 6% increase year-over-year. Excluding the negative impact of the election business, EBIT would have grown by 21%. In turn, the EBIT margin for these three months was 8.2%, compared to 8.1% in 2024, and free cash flow closed March at €77 million (versus €68 million in 2024). Overall, the group's net debt stood at €129 million , higher than in December 2024 (€86 million) and March 2024 (€89 million).