Indra first-half profit edges up 2% as defense revenue doubles, order backlog surpasses €20 billion

Revenue surge driven by defense

Indra's first-half revenue climbed 29.7% to €3,179 million, compared with €2,450 million in the same period of 2025. The defense division was the standout performer, doubling its sales to €973 million, a 103% increase. The company attributed the jump to the Eurofighter programme, Spain's Special Modernisation Programmes, delivery of the 8x8 vehicle, and the integration of recently acquired assets including TESS Defence, Aertec, Hispasat and Hisdesat. The space unit, boosted by those satellite acquisitions, saw revenue leap 403% to €190 million from just €38 million a year earlier.

Minsait, the technology consulting arm, remained the largest division with €1,541 million in revenue, up 2.6%, contributing 48% of the group total. Air traffic management added €300 million, a 16% rise, supported by international radar and air-traffic system contracts. Mobility grew 1.8% to €175 million, helped by ticketing and intelligent transport projects.

Profitability and margins

Net profit edged up 2.1% to €219 million from €215 million in H1 2025. The modest increase reflected a higher corporate tax charge, which rose to €92 million from €67 million, lifting the effective tax rate to 29% from 24%. It also compared against a 2025 base that included a €100 million extraordinary gain from the revaluation of TESS Defence. Operating profit (EBIT) advanced 51% to €316 million, while EBITDA jumped 72% to €456 million. The EBIT margin widened 1.3 percentage points to 9.9%.

Second-quarter momentum was particularly strong: revenue between April and June reached €1,844 million, up 43.5%, and EBIT rose 73% to €198 million. Quarterly net profit, however, fell 7.9% to €143 million, again weighed down by the absence of the prior year's financial extraordinary items.

Order backlog doubles past €20 billion

The order book more than doubled to €20,533 million from €9,474 million a year earlier, a 117% increase. Defense accounted for 57% of the backlog at €11,746 million, after contracting in the division surged 120% to €1,544 million. Mobility contracting jumped 317% to €900 million, driven by the €605 million Transport for London ticketing project, a €126 million contract for the Mecca-Medina high-speed rail system in Saudi Arabia, and a €33 million ticketing deal for Washington's metro. The book-to-bill ratio improved to 1.58 times from 1.29 times.

Leadership transition

Indra presented the results under a new leadership structure. Josep Maria Recasens took over as CEO, and Ángel Simón became non-executive president, succeeding former president Ángel Escribano, who resigned, and former CEO José Vicente de los Mozos. Recasens said the second-quarter performance demonstrated the group's industrial and execution capabilities.

The second-quarter results clearly demonstrate the industrial capabilities, execution and on-time delivery of the contracts that form part of the Indra Group backlog, which allows us to confirm once again our targets for the full year 2026, and at the same time they constitute an unbeatable starting point for our new Strategic Plan, on which we have already begun to work intensively.

He also stressed the need to build alliances.

We must weave solid alliances and cooperative relationships, both nationally and internationally.

Market reaction and outlook

Indra shares rose more than 3% at the open to €52.68, leading gains on the Ibex 35 on a day when the index was down 0.5%. The company reiterated its full-year 2026 financial targets: revenue above €7 billion, EBIT exceeding €700 million, and free cash flow of more than €375 million. During the half, Indra completed the sale of its BPO business and agreed to sell Minsait Business Consulting to private equity firm Waterland, as it continues to reshape its portfolio around defense and technology.