Indra Sistemas (IDR) Q3 2025 earnings summary

Executive summary

• Backlog grew 35% and order intake rose 20% year-over-year, with revenue up 6% and net profit up 58%, partly due to the TESS consolidation and operational improvements.

• Strategic focus on Aerospace and Defense, with significant acquisitions (TESS, Airtech D.A.S., Hispasat, Isdesat, AERTEC) and expansion of industrial footprint in Spain and the US.

• Workforce increased by 5% year-over-year, with Defense headcount up 35% and 3,000 new hires toward a 2026 target of 5,000.

• The group completed the first phase of its strategic plan a year ahead of schedule, surpassing 2025 targets and reaffirming 2025 and 2026 financial guidance.

• Share price has tripled since March 2024, with market capitalization reaching €9 billion.

Financial highlights

• 9M25 revenues reached €3,611m (+6% YoY), EBITDA €405m (+10% YoY, margin 11.2%), EBIT €319m (+10% YoY, margin 8.8%), and net profit €291m (+58% YoY).

• Free cash flow for 9M25 was €57m, down from €94m YoY, due to higher working capital needs and increased investment in defense.

• Net debt stood at €114m (vs. net cash of €86m at end-2024), with a net debt/EBITDA ratio of 0.2x.

• Cash position of €604m and €790m in available credit lines; gross financial debt at €717m.

• Cost of gross debt reduced to 3.2%, with average debt maturity extended to 3.2 years.

Outlook and guidance

• On track to achieve or exceed 2025 and 2026 financial targets, with revenue, EBITDA, and EBIT close to guidance.

• Ambition to reach €10 billion in revenue before 2030, with potential to achieve this by 2028.

• Free cash flow expected to exceed €300 million for full year 2025.

• Defense backlog expected to surpass €10bn in 2026, supported by major contract wins and pre-financing.

• Capital Markets Day in Q2 2026 will outline the next phase of the strategic plan.