Indra Group increases its contracting and portfolio at double-digit rates in the first quarter of 2025
Indra Group's revenue in the first quarter of 2025 grew by 4%, with all Indra Group divisions reporting growth (Defence up 18%, ATM up 2% and Minsait up 1%), except for Mobility, which remained stable.
The comparison of revenue growth for the period with the first quarter of 2024 was affected by the lower one-off contribution from the Elections business in the period (9 million euros now versus 36 million euros then). Excluding the Elections business, total revenues would have grown by 7%, while Minsait's revenues would have increased by 5%, both in reported terms.
The exchange rate reduced revenues by 13 million euros (-1.2pp), mainly due to the depreciation of currencies in Brazil, Mexico and Colombia.
Organic revenues in the first three months (excluding the inorganic contribution from acquisitions and the exchange rate effect) increased by 3%, with growth in Defence of 15%, Minsait of 1% and ATM of 0.2%.
By geography, activity was concentrated in Spain (with 51% of sales) and the Americas (20%). Specifically, revenues grew in Europe (12%; 21% of total sales), the Americas (4%; 20% of sales) and Spain (7%; 51% of total sales), while they declined in AMEA (down 23%; 8% of sales).
Ordinary revenue rose by 4% during this period.
Other revenue stood at 35 million euros, compared to 19 million euros in the first quarter of 2024, mainly due to higher subsidies and work on fixed assets.
The portfolio continues to grow
The order book in the first quarter of 2025 reached 8,003 million euros, up 11% compared to the same period last year, driven by Minsait and ATM. The order book to sales ratio for the last twelve months stood at 1.64x versus 1.58x in the same months of 2024.
Net new business increased by 17%, with strong growth in all divisions, particularly in Mobility, thanks to contracts in Ireland and Colombia; ATM, mainly in the United Kingdom (air navigation radars) and Spain; and Defence, due to radar contracts in Germany and the F110 frigates (United States). The book-to-bill ratio stood at 1.57x, compared to 1.41x in the first quarter of 2024.
Other notable variables
The EBITDA margin in the first three months of 2025 stood at 10.7%, compared to 10.4% in the same period last year, with growth in absolute terms of 7%.
This improvement is mainly explained by the higher revenue growth recorded in the division with the highest operating profitability, Defence, as well as by the improvement in profitability in Mobility and Minsait.
The operating margin was 9.2% versus 9.3% in the first quarter of 2024, with absolute growth of 3%. Other operating income and expenses (difference between operating margin and EBIT) amounted to 12 million euros versus 14 million euros in the same quarter of the previous year, with the following breakdown: staff restructuring costs of 4 million euros compared to 7 million euros, the impact of PPA (Purchase Price Allocation) on the amortisation of intangible assets of 5 million euros compared to 4 million euros, and a provision for compensation in shares for the medium-term incentive of 3 million euros, the same figure as in the previous year.
EBIT stood at 95 million euros compared to 90 million euros in the same period in 2024, representing an increase of 6%. Excluding the Elections business, EBIT would have grown by 21%. The EBIT margin in these three months was 8.2% compared to 8.1% in the same period in 2024.
Net profit stood at 59 million euros, compared to 61 million euros in the first quarter of 2024, representing a 3% decline, mainly as a result of higher financial expenses and taxes.
Free cash flow in the first quarter of 2025 stood at 77 million euros, compared to 68 million euros in the same quarter of the previous year, thanks to the improvement in working capital and despite higher capital expenditure.
Finally, with regard to net debt, the group ended March 2025 with a positive net cash position of 129 million euros, compared to 86 million euros in December 2024 and 89 million euros in March 2024. The Net Debt/EBITDA LTM ratio (excluding the impact of IFRS 16) stood at -0.2x this quarter, compared to -0.2x in December 2024 and 0.2x in March 2024.
2025 targets*
- Revenue in local currency: greater than 5.2 billion euros.
- Reported EBIT: greater than 490 million euros.
- Reported free cash flow: greater than 300 million euros.
*Does not include the acquisitions of TESS Defense and Hispasat
Ángel Escribano, Indra Group's executive chairman, emphasises that ‘we continue to meet and exceed our targets and are facing a period of great ambition and prospects for the future. The combination of our capabilities as a technology group allows us to be at the forefront of the new digitalisation in such strategic areas as the aerospace and defence industry and the civil sector. We want to be a productive company where we have autonomy in the manufacture and commissioning of our products and systems. This approach, together with our growth, both organic and through the addition of other companies, opens the door for us to become an indispensable partner in Spain's technological planning and development, and to compete on a large scale in the global arena.’
For his part, José Vicente de los Mozos, CEO of Indra Group, expressed his satisfaction with the development of the ‘Leading the Future’ Strategic Plan and the objectives that the group is achieving as a corporation under this roadmap. ‘We are consolidating a track record of profitable and sustained growth with results that not only reflect the company's strong performance, but also lay a solid foundation for ensuring the fulfilment of our goals for 2026. In fact, we expect to achieve our 10 billion euros turnover target, initially expected for 2030, ahead of schedule. With our expansion in key sectors, the launch of recent proposals such as IndraMind and the addition of the best technological talent, we are ready to capitalise on our full potential as a nation in the most important areas of development.’