Indra posted 184 million euros in profit and 26% year-on-year growth in 2023
Indra Group's revenues in the first nine months of 2024 increased by 13%, with all divisions of the group showing strong growth, with ATM leading the way with a 35% increase, followed by Defence with 25%, Mobility with 16% and finally Minsait, whose revenues increased by 7%.
For the third quarter alone, increases were also recorded in all divisions (MTA 39%; Mobility 24%; Defence 16% and Minsait 2%). Foreign exchange detracted 41 million euros from revenues in the period (-1.4pp), mainly due to currency depreciation in Argentina and Chile. In the quarter, foreign exchange depreciated by 25 million euros (-2.5pp), mainly due to the depreciation of the Argentinean peso, the Brazilian peso and the Mexican peso.
Organic revenues to September 2024 (excluding the inorganic contribution from acquisitions and the exchange rate effect) grew by 11%, with increases in all divisions: Defence 23%; ATM 23%; Mobility 17% and Minsait 6%. In the quarter, organic revenues increased by 9% (ATM 33%; Mobility 26%; Defence 14% and Minsait 3%).
On the other hand, revenues by geography showed solid growth led by Europe, which grew by 17% and now accounts for 21% of total revenues. In second place was Spain, which, with a 15% increase, continues to account for most of Indra Group's revenues (50%). In third place, the Asia, Middle East and Africa (AMEA) markets increased their revenues by 8%, representing 9% of sales, while the Americas increased by 4%, accounting for 20%.
Portfolio continues to grow
The backlog in the January-September period reached 7,049 million euros, up 1% versus the same months of the previous year, driven by Minsait and ATM. The backlog to sales ratio for the last twelve months was 1.49x compared to 1.67x in the first nine months of 2023.
Net order intake in the first nine months increased by 7%, with growth in all divisions. Of particular note was the strong growth in ATM, mainly driven by the contracts in Canada and Colombia signed during the first quarter of 2024. The book-to-bill ratio of order intake to revenues was 1.09x vs. 1.14x in the first nine months of 2009.
Other highlights
For the period to 30 September 2024, the EBITDA margin stood at 10.9% versus 10.1% in the same period of 2023, up 21% in absolute terms. This improvement is mainly explained by higher revenue growth in the divisions with the highest operating profitability, i.e. Defence and ATM, as well as by the own profitability improvement in Mobility, Defence and Minsait. For the third quarter alone, the margin also improved to 12.7% versus 11.6% and grew by 20% in absolute terms.
For the nine months to 2024, the operating margin was 9,8% compared to 8,9% in the previous year, with growth in absolute terms of 24%. Other operating income and expenses (difference between operating margin and EBIT) amounted to -43 million euros versus -41 million euros, with the following breakdown: workforce restructuring costs of -23 million euros versus -16 million euros; PPA (Purchase Price Allocation) impact on the amortisation of intangibles of -11 million euros versus -12 million euros; and provision for the mid-term incentive share-based compensation of -9 million euros versus -13 million euros. In the third quarter, the operating margin reached 11.3% compared to 10.2% in the same period in 2023; and other operating income and expenses stood at -12 million euros versus -13 million euros.
The EBIT margin in the first nine months of 2024 was 8.5%, compared to 7.6% in the previous year, and grew by 27% in absolute terms. For the third quarter, the margin improved to 10.2% versus 8.9%, a growth of 25% in absolute terms.
Net income in the nine-month period amounted to 184 million euros compared to 146 million euros in the same months of the previous year, an increase of 26%. In the quarter, net income grew by 24%.
Free Cash Flow decreased to 94 million euros versus 117 million euros in 9M23, due to the payment of 41 million euros of the IRPF corresponding to the delivery of shares of the 2021-2023 medium-term remuneration system in the second quarter of 2024. In the third quarter FCF was 25 million euros compared to 63 million euros in 3Q23, due to higher customer collections in that period of the previous year.
Finally, net debt stood at 70 million euros in September 2024 versus 107 million euros in December 2023 and 233 million euros in September 2023. The Net Debt/EBITDA LTM ratio (excluding IFRS 16 impact) was 0.1x in September 2024 vs. 0.3x in December 2023 and 0.6x in September 2023.
2024 targets
The 2024 financial targets, which were already increased last July, are confirmed:
- Revenues in local currency: higher than 4.8 billion euros.
- Reported EBIT: higher than 415 million euros.
- Reported Free Cash Flow: higher than 260 million euros.
Marc Murtra, CEO of Indra, explained in reference to Indra's results that ‘the continuous improvement in operations and management are bearing fruit that are visible in our results, which are good and confirm that we are executing our strategy. Acquisitions such as Deimos and MQA reinforce our capabilities in key sectors, such as aerospace and technology, and are consistent with our strategy. We have a clear objective and we continue to move towards it‘.
José Vicente de los Mozos, CEO of Indra, said: ‘We continue to work on the implementation of our Strategic Plan ‘Leading the Future‘. In terms of results, we can see that we are in a process of continuous improvement as a result of the actions implemented thanks to the effort and commitment of all Indra's employees’.