Indra Sistemas (IDR) Q2 2026 earnings summary

Executive summary

• Achieved double-digit growth in order intake, revenue, and EBIT in 1H26, with strong margin improvements and all divisions contributing to growth.

• Strategic focus on delivery, quality, sovereignty, and competitiveness, supported by robust backlog, technological capabilities, and portfolio optimization, including the sale of Minsait Business Consulting and BPO business.

• Opened a Center of Excellence in Manufacturing in Kansas, delivered first FAA radar and 43 VCR 8x8 vehicles.

• Formed strategic alliances with BAE, Rheinmetall, NATS, IDV, Iveco, and Kongsberg, securing major contracts in the US, Spain, Congo, and other markets.

• Leadership changes include a new CEO emphasizing execution, industrial partnerships, and scaling AI through IndraMind.

Financial highlights

• Backlog reached €20,533m (+117% YoY), order intake €5,010m (+58% YoY), and revenues €3,179m (+30% YoY); 2Q26 revenues up 43% YoY.

• EBIT margin improved to 9.9% (+1.3pp YoY), EBITDA margin at 14.4% (+3.6pp YoY), and net income at €219m (+2% YoY).

• Free cash flow surged to €1,487m, mainly due to advance payments for Special Modernisation Programmes; net cash position at €1,033m.

• Net debt/EBITDA ratio improved to -1.3x; consolidated cash position at €2.5bn.

• Book-to-bill ratio at 1.58x; backlog/revenue LTM ratio at 3.32x.

Outlook and guidance

• Confident in achieving full-year guidance: EBIT over €700m, revenues over €7bn, and free cash flow above €375m (excluding PEMs prepayments).

• Defence and ATM expected to offset any moderation in Minsait growth.

• CapEx guidance for 2026 is around €300m, with CapEx/revenue ratio rising to 4–4.3%.

• 1H26 performance is on track to deliver annual targets, with acceleration and profitability improvement expected for the full year.