Indra reaches all-time highs in backlog, order intake, revenues and EBIT in 2022
Indra reached all-time highs in backlog, order intake, revenues and EBIT in 2022. In addition, cash generation has reduced net debt to almost zero, with a 67% increase in the dividend.
Backlog exceeded €6.3bn (+16% vs 2021), with order intake growing +29% vs 2021, driven by Transport and Defence.
Revenues reached EUR 3,851m in 2022 (+14% vs 2021), with solid growth in both Minsait (+18%) and Transport & Defence (+6%). Foreign exchange contributed EUR 67m in 2022 vs EUR -41m in 2021.
Reported EBIT in 2022 reached an all-time high of €300m, increasing +18% year-on-year, thanks to the improved operating margin of both divisions compared to the previous year.
TyD's EBIT margin reached 12.2% and Minsait's EBIT margin reached 5.5% in 2022. Meanwhile, basic earnings per share (EPS) increased by +20% compared to 2021. Net income amounted to EUR 172 million in 2022 vs EUR 143 million in 2021.
Free cash flow (FCF) in 2022 was EUR 253m, bringing the net debt/EBITDA ratio down to 0.1x vs. 0.8x in December 2021.
In this scenario, Indra announced the payment of a dividend of EUR 0.25 per share out of 2022 earnings, payable on 12 July 2023. This dividend represents an increase of +67% compared to last year's dividend (€0.15/share).
Ignacio Mataix, CEO of Indra, said: "The efforts of our excellent team, combined with the trust of our customers, have enabled the company to close a year 2022 that can be described as historic, as we have managed to reach our record highs in order intake and backlog, as well as in revenues and EBIT. The main items on our income statement grew in double digits, resulting in a final growth of 20% in our earnings per share. At the same time, cash generation in the year was excellent, the second best in our history, allowing us to reduce net debt to almost zero. With these results, we can significantly improve our shareholder return with the announced dividend growth proposal".
"The commercial performance of 2022 has been outstanding, with double-digit growth in our order intake, which has consequently allowed us to grow our revenues also at double-digit rate, and at the same time put our backlog at a new all-time high, and more importantly, with contracts that will transform the company such as FCAS, which also substantially enhances our long-term vision," Ignacio Mataix pointed out.
"And all this growth has been achieved by improving the profitability of our two divisions, thanks to the operating leverage provided by the growth of our sales, the improvement of our supply mix and the materialisation of our efficiency plans, and despite the environment of strong wage inflation in our markets," he said.
"Finally, I would like to highlight Indra's strong ESG performance once again this year. This year Indra achieved the milestone of being ranked for the second consecutive year as the most sustainable company in its sector and among the top one percent most sustainable in the world, according to the Sustainability Yearbook 2023 prepared by the S&P Global agency. Furthermore, it has been rated as best practice by the prestigious CDP Climate Change Index, which recognises Indra as one of the companies with the best environmental practices. These excellent results, together with the strength of our balance sheet, the quality and volume of our portfolio and the great team of professionals we have, constitute an unbeatable starting point to face future strategic decisions and our growth in the coming years", added Indra's CEO.
Indra acquired during FY2021 several companies in the IT business (Flat 101, Managed Security Services, Organisational Consulting, Net Studio, The Overview Effect, Credimatic and Afterbanks). In 2022, Indra acquired Nexus and Mobbeel for the IT business and Simumak and Temansa for the T&D business. These acquisitions contributed € 64 million to revenues in 2022 and € 10 million to revenues in 2021.
The backlog in 2022 stood at €6,309m and showed a growth of +16% in reported terms vs 2021. The Transport & Defence division's backlog amounted to EUR 4,587 million and increased by +19% in 2022 vs 2021, highlighting Defence & Security with a cumulative backlog of EUR 2,953 million. Minsait's backlog amounted to EUR 1,722 million and increased by +8% in 2022 vs. 2021. The backlog to sales ratio for the last twelve months stood at 1.64x in 2022 vs. 1.61x in 2021.