The Spanish technology and telecommunications sector concluded 2025 with starkly contrasting results. Defense conglomerate Indra reported a record net profit of 436 million euros, a 57% increase, fueled by a boom in the defense sector. Meanwhile, Telefónica closed the year with a net loss exceeding 4.3 billion euros, resulting from costly workforce restructuring in Spain and its withdrawal from most Latin American markets.

Indra's Record Profits

The defense conglomerate increased net profit by 57% to 436 million euros thanks to a boom in the defense sector.

Telefónica's Billion-Euro Loss

The 4.3 billion euro loss results from costs of employee severance packages (ERE) and the sale of subsidiaries in Latin America.

Telecom Italia Share Buyback

The Italian operator plans to spend 400 million euros on a buyback after the successful sale of network assets.

Changing of the Guard in Management

Telefónica's new chairman, Marc Murtra, earned 5.2 million euros, 45% less than his predecessor.

The year 2025 proved pivotal for the largest players in the Spanish technology market. Indra Group, led by Ángel Escribano, presented financial results that significantly exceeded its previous strategic targets. The company earned a net profit of 436 million euros, a direct consequence of dynamic growth in defense sector orders. The firm's order book grew by 122%, reaching 16 billion euros, allowing it to achieve the goals of its "Leading the future" strategic plan a year ahead of schedule. Key success factors were government modernization programs and an increase in the value of its stake in the TESS Defense consortium, responsible for producing the Dragón armored vehicles. Telefónica presents a completely different dynamic, undergoing deep structural transformation under the new leadership of Marc Murtra. The record loss of 4.318 billion euros stems from massive one-time accounting write-offs. The cost of the voluntary departure program (ERE) in Spain exceeded 2 billion euros, and write-offs from the sale of loss-making assets in Argentina, Peru, Uruguay, and Ecuador burdened the result by nearly 2.3 billion euros. Despite the negative net result, management emphasizes operational success: group revenues grew by 1.5% to 35.1 billion euros, and in Spain alone, the company recorded simultaneous growth in revenue, EBITDA profit, and cash flows for the first time since 2008. The Spanish telecommunications sector has been grappling with high debt and intense price competition for a decade, prompting giants like Telefónica to drastically simplify structures and focus on its European portfolio.In the shadow of the Spanish giants, Telecom Italia (TIM) also announced results. The Italian operator plans a share buyback worth up to 400 million euros after reporting revenue growth to 13.73 billion euros. The company, similar to its Spanish counterpart, is in a restructuring phase after selling its fixed-line network to the KKR fund. TIM's strategy now focuses on debt reduction and capital profile optimization through share consolidation.

Mentioned People

  • Marc Murtra — Chairman of Telefónica implementing the Transform & Grow plan.
  • Ángel Escribano — Chairman of the Board of Indra Group.
  • José María Álvarez-Pallete — Former long-time chairman of Telefónica.