Indra Sistemas (IDR) Q2 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in H1 2025, with revenue up 6% year-over-year and acceleration to 8.4% in 2Q25, driven by Defense and ATM segments.

• Order backlog grew 33% year-over-year, reaching €9,474m, with order intake up 18% and book-to-bill ratio at 1.29x.

• Net profit surged 88% to €215m, supported by operational improvements and a one-off gain from TESS Defence consolidation.

• Launched new divisions and the IndraMind AI platform, targeting both civil and defense applications.

• Expanded industrial footprint and talent acquisition, with over 2,000–3,000 new hires planned for 2025–2026.

Financial highlights

• 1H25 revenues: €2,450m (+6% YoY); 2Q25 revenues: €1,285m (+8.4% YoY); all divisions grew except Mobility, which remained stable.

• EBITDA margin reached 10.8% (€265m, +15% YoY); EBIT margin improved by 0.8 points to 8.6% (€209m, +17% YoY).

• Net profit: €215m (+88% YoY); Basic EPS: €1.22 (+87% YoY).

• Free cash flow: €65m in H1, with a target of over €300m for FY 2025.

• Net financial position nearly neutral at €4m, with reduced debt cost (3.3%) and extended maturity (3.3 years).

Outlook and guidance

• Reaffirmed 2025 guidance: revenues to exceed €5,200m, EBIT above €490m (9.4% margin), and free cash flow over €300m.

• Expects to double defense order intake by year-end, supported by strong pipeline and readiness for new government programs.

• IndraMind projected to reach €300m revenue in 2025, €700m by 2028, and €1bn by 2030, with 25–30% CAGR.

• Strategic plan aims to surpass 2026 objectives and accelerate industrial and innovation initiatives.