Indra Sistemas (IDR) Q1 2025 earnings summary

Executive summary

• Achieved double-digit growth in order intake (+17%) and backlog (+11%) to over €8bn, with revenues up 4% year-over-year, led by 18% growth in Defence.

• EBITDA and EBIT grew 7% and 6% respectively, with margins at 10.7% and 8.2%; net profit reached €59m, down 3% due to higher financial costs and taxes.

• Free cash flow rose 14% to €77m, and net cash position improved to €129m at quarter-end.

• Strategic focus on defense, aerospace, digital transformation, targeted M&A, and launch of IndraMind AI platform.

• New organization and leadership changes implemented to support growth and strategic priorities.

Financial highlights

• Revenues: €1,164m (+4.2% YoY); EBITDA: €125m (+7.3% YoY, margin 10.7%); EBIT: €95m (+5.9% YoY, margin 8.2%).

• Net income: €59m (-3.2% YoY); free cash flow: €77m (+14.1% YoY); net cash position: €129m (-0.2x Net Debt/EBITDA).

• Backlog: €8,003m (+11.2% YoY); order intake: €1,833m (+16.6% YoY); book-to-bill ratio: 1.57x.

• Revenues excluding Elections up 7%; EBIT up 21% excluding Elections.

• Cost of gross debt reduced to 3.4%; average debt maturity extended to 3.3 years.

Outlook and guidance

• 2025 financial guidance and 2026 Strategic Plan targets reaffirmed, with ambitions to reach €6bn in revenue and €10bn turnover ahead of 2030.

• Margins expected to improve progressively as fixed cost absorption increases with higher revenues.

• Defence net order intake expected to double in 2025 vs 2024, driven by increased military expenditure.

• Strategic priorities include scaling industrial capabilities, internationalization, and increased R&D investment.