Spain's Indra retains 2026 targets on defence boost
Indra's Financial Performance and Defence Sector Growth
Strong First-Half Results
July 23 (Reuters) - Spanish defence and technology firm Indra held on to full-year targets after strong growth in its defence business bumped up revenue and operating profit for the first half.
State Ownership and Strategic Expansion
Indra, partly owned by the state, has taken on a bigger role in the defence sector after NATO member Spain pledged to lift defence spending to 2% of gross domestic product.
Revenue Breakdown
Growth Drivers in Defence Revenue
The firm's defence revenue rose 103% year-on-year to €973 million ($1.1 billion), driven by higher contributions from the Eurofighter programme, military modernisation projects and armoured vehicle work.
Challenges in Key Programmes
This offset a 15% decline in revenue from the FCAS future fighter jet programme, one of Europe's flagship defence projects.
Analyst Expectations
UBS had previously flagged defence revenue as a key test of the company's growth strategy, and expected it at around €993 million for the first half.
Profit and Cash Flow
Net Profit and Free Cash Flow Surge
Indra's first-half net profit rose 2% to €219 million, while free cash flow jumped to €1.49 billion euros from €65 million, helped by payments linked to defence modernisation programmes.
Future Outlook
Projected Growth in Defence Division
Morgan Stanley said the company's defence division could grow to €5.2 billion in revenue by 2030 to become its biggest business, as Spanish defence equipment spending nearly doubles.
Currency Exchange Rate
($1 = 0.8752 euros)
Reporting Credits
(Reporting by Gemma Guasch and Mireia Merino; Editing by Mrigank Dhaniwala)