Indra increased revenues by 22% and net profit by 40% in the first quarter compared to 2023

The portfolio exceeded 7 billion euros at the end of March 2024 
Marc Mutra, presidente de Indra Sistemas - PHOTO/ATALAYAR
Marc Murtra, president of Indra Sistemas - PHOTO/ATALAYAR

Indra's revenues in the first quarter of 2024 (1Q24) grew 22% and all its divisions achieved double digit growth (ATM 63%; Defence 56%; Mobility 19% and Minsait 12%). 

Foreign exchange detracted €7m from revenues in the period (-0.7pp), mainly due to currency depreciation in Argentina and Chile. 

Organic revenues in the first three months of the year (excluding the inorganic contribution from acquisitions and the exchange rate effect) grew by 19%. By divisions, Defence increased 53%; ATM 42%; Mobility 19% and Minsait 10%. 

The backlog in 1Q24 reached 7,199 billion€, an increase of 6% compared to the first quarter of 2023 (1Q23), driven by Minsait and ATM. The backlog to sales ratio for the last twelve months was 1.58x compared to 1.73x in the same period of the previous year. 

Net order intake in the first quarter increased 12%, with growth in all divisions except Mobility. Of note was the strong increase at ATM (mainly due to contracts in Canada and Colombia) and at Minsait, especially in the Public Administrations & Healthcare vertical (projects for the Spanish Public Administration and development of elections). The book-to-bill order-to-revenue ratio was 1.41x, compared to 1.53x in the first nine months of 2008. 

The EBITDA margin in 1Q24 was 10.4% compared to 10.0% in 1Q23. This improvement in profitability is mainly due to growth in the divisions with the highest operating profitability: Defence and ATM. In absolute terms, EBITDA grew by 27%. 

The operating margin in the first three months of the year was 9.3% compared to 8.3% in the same months of 2023, with a growth in absolute terms of 37%.  

Other operating income and expenses (corresponding to the difference between operating margin and EBIT) amounted to € -14m versus € -11m in the first quarter of the previous year, with the following breakdown: workforce restructuring costs (€ -7m vs € -4m); provision for the provision for the mid-term incentive share-based compensation (€ -4m in both periods); and the impact of the PPA (Purchase Price Allocation) on the amortisation of intangibles (€ -3m in both periods). 

The EBIT margin in the first quarter of 2024 reached 8.1% compared to 7.1% in the same months of 2023, and grew by 38% in absolute terms. 

Net Profit for the same period amounted to €61m compared to €44m for the same period in the previous year, an increase of 40%. 

Free Cash Flow in 1Q24 reached €68m versus €27m in 1Q23. This increase is mainly explained by the higher operating profitability and the improvement in the working capital variation.  

Net Debt stood at € 89m in March 2024 compared to € 107m in December 2023 and € 27m in March 2023. The Net Debt/EBITDA LTM ratio (excluding IFRS 16 impact) was 0.2x in March this year compared to 0.3x in December 2023 and 0.1x in March 2023. 

Marc Murtra, Chairman of Indra, highlighted the results: "We have made a strong start to the implementation of our Strategic Plan, our first milestone being the Board's approval of the creation of Indra Espacio, which will be the cornerstone of our activities in the space business. These are solid quarterly results and a first small step towards the execution of our strategy". 

Commenting on the financial results, José Vicente de los Mozos, CEO of Indra, said: "The first quarter of the year has been characterised by a significant growth in our commercial and financial indicators and by an improvement in profitability and cash generation thanks to the hard work of all the men and women who are part of Indra. All of them, without exception, are focused on the effective deployment of our Strategic Plan -Leading the Future-, announced on 6 March. Without a doubt, these quarterly results are a great starting point to achieve the goals we have set for ourselves".