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Indra expects stronger defence growth in 2026, backed by TESS deliveries - Finance news and analysis from Global Banking & Finance Review
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Indra expects stronger defence growth in 2026, backed by TESS deliveries

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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Indra Expects 80% Defence Revenue Growth in 2026 Backed by TESS Deliveries

Indra's Defence Revenue Outlook and Key Financial Highlights

(Corrects dateline with no changes to text.)

By Gemma Guasch and Mireia Merino

Indra Raises Defence Revenue Growth Expectations

Oct 29 (Reuters) - Indra, Spain’s technology and main defence company, raised expectations for defense revenue growth to around 80% in 2026, mainly from its TESS Defence VCR 8x8 Dragon vehicle deliveries, the company said after posting its third-quarter results on Thursday.

Indra shares were up 3.8% at 10:09 GMT.

Role in Spain's Defence and Aerospace Sector

The company, which is partly state-owned, has taken on a bigger role in Spain's defence and aerospace sector after the country pledged to lift defence spending to 2% of gross domestic product. Indra participates in both Spanish Special Modernisation Programs and NATO contracts.

Key Details from Q3 Results

TESS Defence Deliveries and Revenue Growth

KEY DETAILS

TESS Defence VCR 8x8 Dragon Deliveries

• TESS Defence VCR 8x8 Dragon vehicle deliveries should exceed guidance of 90 units by year-end, CEO Josep Maria Recasens said in a call with analysts

Financial Performance

• Revenue rose 26% year-on-year to €1.47 billion ($1.64 billion), with Space growing 329% and Defence 95%

• Indra's reported backlog reached €22.2 billion in the first nine months of the year, up 133%

• Net order intake grew 139% in the third quarter, boosted primarily by a €1.9 billion IRIS² satellite contract from the European Commission

IRIS² Satellite Contract and Revenue Projections

• About 70% of IRIS² revenue are expected before 2030, while most commercialization capex would occur between 2031-2035

Acquisitions and Market Importance

• Acquisitions contributed €529 million to revenue: in Defence inorganic growth was driven by the acquisition of TESS Defence, in Space by Hispasat and Hisdesat and in Air Traffic by Micronav and Global ATS

• Spain's importance for the company's business "continued to increase during the period, a trend that we expect to continue in the coming periods," Recasens added, as the market represented 58% of its nine-month revenue

Additional Information

($1 = 0.8959 euros)

(Reporting by Gemma Guasch and Mireia Merino; Editing by Ronojoy Mazumdar)

Key Takeaways

  • Defence revenue expected to grow ~80% in 2026, led by TESS VCR 8×8 Dragon deliveries and Eurofighter contracts (investing.com)
  • TESS delivered 78 Dragon vehicles through October and aims to surpass the 90‐unit guidance by year‑end (infodefensa.com)
  • First‑nine‑month revenues rose 29%, backlog jumped 133% to €22.2 billion, and Indra reaffirmed its 2026 targets of €7 billion+ revenue, €700 million+ EBIT and €375 million+ FCF (indragroup.com)

References

Frequently Asked Questions

What is driving Indra's expected defence growth in 2026?
Indra's expected defence growth in 2026 is mainly driven by deliveries of the TESS Defence VCR 8x8 Dragon vehicles.
How much did Indra's revenue grow year-on-year in the third quarter?
Indra's revenue rose 26% year-on-year in the third quarter to €1.47 billion.
What major contract boosted Indra's net order intake in Q3?
The €1.9 billion IRIS² satellite contract from the European Commission significantly boosted Indra's net order intake.
What percentage of Indra's revenue came from Spain in the first nine months?
Spain represented 58% of Indra's revenue in the first nine months of the year.
Which acquisitions contributed to Indra’s inorganic growth?
Acquisitions of TESS Defence, Hispasat, Hisdesat, Micronav, and Global ATS contributed to Indra’s inorganic growth.

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