Indra Sistemas (IDR) Q3 2026 earnings summary

Executive summary

• 9M26 revenue rose 28.6% to €4,645m; EBITDA increased 62.2% to €657m, EBIT rose 42.4% to €454m and net income grew 22% to €355m.

• Backlog reached €22,165m, up 133%, while order intake grew 81.7% to €8,085m, including €1.9bn from IRIS² in Space.

• 9M26 performance was in line with annual targets, with aerospace and defence representing 80% of backlog, 46% of revenue and 69% of EBIT.

Financial highlights

• Q3 revenue was €1,466m, up 26.2%; EBIT reached €137m, up 26%, with a stable 9.4% EBIT margin.

• Revenue growth was 29% reported, 28% in local currency and 16% organic; international business represented 42% of revenue.

• 9M net income was €355m, up 22%; reported free cash flow reached €1,692m versus €57m in 9M25, primarily reflecting program advances.

• Acquisitions contributed €529m of 9M sales versus €11m a year earlier; BPO divestment contributed €62m versus €143m.

Outlook and guidance

• 2026 targets reaffirmed: revenue above €7,000m in local currency, reported EBIT above €700m and reported FCF above €375m.

• FCF guidance excludes Special Modernization Program advances and joint ventures, and includes constant factoring of €187m.

• Defence revenue is expected to grow ~80%, with EBIT margin of ~18%–19%; forecast includes more than €400m from TESS and ~€600m from PEMs.

• Space revenue is expected above €400m; Air Traffic targets double-digit growth and 12%–13% EBIT margin. Minsait expects low-single-digit revenue growth and ~6.6% EBIT; Mobility expects mid-single-digit growth and ~5% EBIT.

• IRIS² revenue recognition is expected to be modest in 2026; ~70% of the €1.9bn award is expected by end-2030, with commercialization CapEx of €500m–€540m back-loaded and less than €100m through 2030.