Indra Sistemas (IDR) Q1 2025 earnings summary

Executive summary

• Revenues grew 4% year-over-year, led by 18% growth in Defence, with EBITDA up 7% and EBIT up 6%; net income was €59 million and free cash flow €77 million, up 14% year-over-year; net cash position at €129 million.

• Backlog exceeded €8 billion (+11%), order intake up 17%, with Defence order intake expected to double by 2025 vs 2024.

• Workforce productivity rose 2% year-over-year, with headcount up 5% since December 2024, supporting strategic priorities.

• Strategic initiatives include new organization, industrial plan, launch of IndraMind AI platform, and ongoing M&A activity.

• Net profit declined 3% due to higher financial costs and taxes.

Financial highlights

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

• Free cash flow: €77 million (+14% YoY); net cash position: €129 million at quarter-end; Net Debt/EBITDA: -0.2x.

• Backlog: €8,003 million (+11.2% YoY); order intake: €1,833 million (+16.6% YoY); book-to-bill ratios: Defence 1.67x, ATM 2.48x, Mobility 1.86x, Minsait 1.37x.

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

• Days sales outstanding improved to -9 days from -3 days a year ago; working capital at -€118 million.

Outlook and guidance

• 2025 financial guidance and 2026 Strategic Plan targets reaffirmed; ambition to reach €10 billion in revenues ahead of 2030.

• Margins expected to improve through the year as fixed cost absorption increases with revenue growth.

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

• Priorities include focus on Aerospace & Defence, technology transformation, and internationalization.

• Guidance excludes acquisitions of TESS Defence and Hispasat.