The Spanish defense industry Indra increases its profit by 40% in the first quarter

This article was originally published in English

The Spanish technology and defense company Indra Sistemas published its results for the first quarter of 2024 on Monday, in which it recorded sales of 1.1 billion euros, compared to 917 million in the first quarter of 2023.

This figure represents an increase of close to 22%, driven by the strong growth of the areas of Mobility, Defense, Air Traffic Management (ATM) and Minsait. It is an ascending race that has already set precedents in 2022.

Earnings per share rose 42% in one year

Net profit soared to €61 million in the first quarter of 2024, compared to €44 million in the corresponding quarter of 2023, an increase of approximately 40%.

Likewise, the EBITDA It also grew to 117 million euros in the first quarter of the year, from 92 million euros, while the EBITDA margin rose to 10.4% from 10% in the first quarter of 2023.

Basic earnings per share (EPS) was 0.35 euros in Q1 2024, compared to 0.25 euros in the same quarter of the previous year, which represents an increase of almost 42%. Operating margin was 104 million euros in the 1st quarter of 2024, compared to 76 million euros.

Towards the “space business”

Marc Murtrapresident of Indra, stated in a statement: “We have begun with firm steps the execution of our strategic plan, the first milestone of which has been the approval by the board of directors of the creation of Indra Space, an entity that will become the cornerstone of our activities in the space business. “These are strong quarterly results and a small first step towards executing our strategy.”

The CEO of Indra, José Vicente de los Mozospointed out: “The first quarter of the year has been characterized by the important growth of our commercial and financial indicators and for the improvement of profitability and cash generation, thanks to the efforts of all the men and women who are part of Indra.”

Why has Indra done so well in the first quarter?

One of the main reasons for Indra’s success in the first quarter is the increase in interest in the European defense sector, since regional tensions and the geopolitical uncertainties continue to increase in recent years. The war between Russia and Ukraine, in particular, has led several European nations to become even more aware of potential national threats.

For a few months now, the company has been trying to integrate its aerospace and defense branches to have a strengthened position in Spain and, from there, in the rest of Europe.

In the words of Murtra, collected by Defense News“Europe is entering a new major cycle of defense investment after more than 30 years, characterized by a major shift in orientation towards technology, a greater participation of defense systems and the expansion of multidomain capabilities”.

“Some of our North Atlantic Treaty Organization (NATO) allies within Europe, such as el United Kingdom, Italy and France, have already taken important steps in the consolidation of the defense and aerospace sectors,” he added.

“This process is crucial to achieve Spain’s strategic autonomy and guarantee its influence on a global scale. With our strong positioning and capabilities, we aspire to lead the Spanish national ecosystem in less than 10 years,” concluded Murtra.