This article first appeared on GuruFocus .
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Order Intake:EUR 12.78 billion in 2025, 2.4 times the 2024 figure.
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Backlog:Exceeded EUR 16 billion, more than double the previous year.
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Revenue:EUR 5.457 billion, 5% above guidance.
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EBITDA:EUR 517 million, 66% above target.
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Free Cash Flow:EUR 364 million, 21% above commitment.
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Net Debt:EUR 583 million, with a net debt to EBITDA ratio of 1.
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Defense Order Intake:EUR 8.1 billion, significant growth driven by Eurofighter and PEMs.
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Defense Backlog:EUR 11.3 billion, substantial increase from the previous year.
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R&D Investment:EUR 472 million, around 9% of revenue.
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Dividend Payout:0.30% per share increase.
Release Date: February 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Indra Sistemas SA ( ISMAF ) achieved a significant increase in order intake, reaching 12.78 billion in 2025, which is 2.4 times the 2024 figure.
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The company's backlog exceeded 16 billion, more than double the previous year, driven by strong growth in the defense sector.
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Indra Sistemas SA ( ISMAF ) has launched new units in aerospace and defense, including Indra land vehicles and Indrapace, strengthening its position as a national and European benchmark.
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The company has invested over 950 million in acquiring more than 10 companies and assets while maintaining a net debt to EBITDA ratio of one time.
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Indra Sistemas SA ( ISMAF ) has secured major international contracts, including a 1 billion EUR contract with Transport for London and a 300 million EUR contract with the US Federal Aviation Administration.
Negative Points
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The company faces challenges in maintaining its high growth trajectory, particularly in the defense sector, which may be subject to delays due to administrative or court decisions.
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Indra Sistemas SA ( ISMAF ) has increased its net financial debt to 583 million EUR, compared to a cash position of 86 million EUR at the end of 2024, primarily due to acquisitions.
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The company's reliance on special modernization programs (PEMs) for growth in the defense sector may expose it to risks if these programs are delayed or canceled.
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There is uncertainty surrounding the FCAS program, with potential delays and lack of definition regarding the final outcome.
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The company's divestment strategy, particularly in the BPO business, may impact its ability to deliver value-added solutions if not managed effectively.
Q & A Highlights
Q: What are Indra's expectations for defense spending in 2026 and 2027, and can you provide an update on the FCAS program? A: Jose Vicente De Los Mozos Obispo, CEO, explained that the government aims to increase defense spending to 2% of GDP, which will result in higher investments in 2026. Indra is well-positioned to participate in various programs, focusing on army dimensions and cybersecurity. Regarding the FCAS program, it is progressing well, with Indra leading the Spanish pillar. The project is still in definition, but Indra is coordinating effectively with French and German partners.
Q: Can you provide details on the guidance for 2026, particularly regarding the inclusion of tests and the cancellation of payment sales? A: Jose Vicente De Los Mozos Obispo, CEO, stated that while they have detailed plans for 2026, they prefer not to disclose specifics until the content is finalized. The company is focusing on making digital capabilities cross-cutting and has decided to retain payment methods within Indra, as they believe they can extract more value internally.
Q: What is the expected growth in different business areas, especially in defense, and are there any potential delays in PEM programs? A: Jose Vicente De Los Mozos Obispo, CEO, mentioned that they have assessed growth with and without PEMs across defense areas. While potential delays due to administrative or court decisions are possible, they have done their homework and do not expect significant impacts on production.
Q: Is the improvement in Minsight's margin in Q4 structural, and what is the CapEx guidance for 2026 and 2027? A: Jose Vicente De Los Mozos Obispo, CEO, confirmed that Minsight's margin improvement is part of a structural change, with investments aimed at making it a core pillar alongside defense. The CapEx guidance includes 100 million for machinery and 300 million for other investments, focusing on vertical integration and core business elements.
Q: Can you provide more visibility on the growth levels in different business areas, particularly in defense, and the inclusion of FCAS and PEMs in the 2026 guidance? A: Jose Vicente De Los Mozos Obispo, CEO, indicated that while they have assessed growth with and without PEMs, they prefer not to disclose specifics. The FCAS program is included in the guidance, with expected sales of EUR205 million. The company is prepared for potential delays but remains confident in its strategic positioning.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
