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1. Company Snapshot

1.a. Company Description

Indra Sistemas, S.A. operates as a technology and consulting company worldwide.It designs, develops, produces, integrates, operates, maintains, repairs, and markets systems, solutions, and services based on the use of information technologies, electronics, and communication; and for surveillance and security control of facilities.It also researches, engineers, designs, develops, manufactures, markets, installs, maintains, and repairs devices, equipment, and systems for data communication, encryption systems, encryption, beacon, and command and control center; manages, executes, commercializes, and sells system engineering services for the defense industry; and provides engineering and maintenance services for air defense systems and other related systems, as well as architectural and engineering technical services.


In addition, it offers systems to aid navigation and landing, and air traffic control systems; outsources business processes; delivers document management services and mortgage management; realizes measures for the settlement and registration; and manages digitalization and data capture.Further, it provides business consulting, technology and solutions consulting, administration, management, support, advisory, telecommunications, mobile telephony, credit card processing, and energy transport and distribution network manufacture services; engineering and consultancy services for environment, transport, construction, water, and industry areas; and digital agency, web communication and marketing, securities, computer programing, aerodrome air traffic, radio communication security, port infrastructure, airline training and coaching, and project services.Additionally, it researches and develops autonomous air systems and solutions in unmanned systems; and develops and produces aircraft, tactical communication systems, and toll and traffic control and management systems.


Indra Sistemas, S.A. was founded in 1921 and is headquartered in Alcobendas, Spain.

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1.b. Last Insights on IDR

Indra Sistemas, S.A. has been driven by growth prospects in the airspace and procedure design market. The global market is expected to grow from $9.25 billion in 2024 to $15.59 billion by 2033, with a CAGR of 5.97%. Indra Sistemas is well-positioned to benefit from this trend, given its expertise in air traffic management and navigation systems. Additionally, the company's adaptability and innovation capabilities make it an attractive player in the tech sector, particularly in artificial intelligence. Recent industry research highlights Indra Sistemas as a key player.

1.c. Company Highlights

2. Indra's Strong 9M 2025 Performance: Is the Stock Priced In?

Indra's financial performance for the first 9 months of 2025 was robust, with revenues growing by 6% to reach a significant milestone. The EBITDA margin expanded to 11.2%, and the EBIT margin stood at 8.8%, both up 10% in absolute terms. However, the EPS of €0.4384 fell short of analyst estimates of €0.669, indicating a potential miss on expectations.

Publication Date: Nov -10

📋 Highlights
  • Backlog Growth: 35% increase to support future programs, driven by TESS consolidation.
  • Defense Prefinancing: EUR 7.8 billion secured for 30 modernization programs in Spain.
  • R&D Investment: EUR 829 million allocated, aiming for EUR 1.2 billion by 2026 to boost tech sovereignty.
  • Capital Expenditure: EUR 250 million planned (EUR 150M in Spain, EUR 100M in the US) over 2 years.
  • Net Profit Surge: 85% YoY increase to EUR 291 million for the first 9 months of 2025.

Segmental Performance

The defense business delivered a robust growth in order intake, 47%, driven by Eurofighter programs and radar contracts in Germany and Oman. Revenue increased by 14%, supported by Eurofighter, space, and weapons and ammunition. The EBITDA margin stood close to 20%, and the EBIT margin reached 17%. Minsait, on the other hand, achieved stable progress, expanding its backlog, order intake, and revenue with a growth of 14.7%, 6.7%, and 3.1%, respectively.

Valuation Metrics

With a P/E Ratio of 22.64 and an EV/EBITDA of 13.36, Indra's stock appears to be fairly valued. The ROE of 28.67% and ROIC of 8.76% indicate a strong return on equity and invested capital. The Net Debt / EBITDA ratio of 0.59 suggests a manageable debt burden. As per Jose Vicente Los Mozos, CEO of Indra, "the EUR 10 billion figure is conservative, and the company is looking at 3- to 6-year programs, with the first phase being just the beginning."

Growth Prospects

Analysts estimate next year's revenue growth at 17.8%, indicating a significant acceleration in growth. With a strong backlog and intake growth, Indra is well-positioned to achieve its targets. The company's focus on strategic sectors, including defense and ATM, is expected to drive growth in the medium term.

Investment Implications

With a market capitalization of around €9 billion, Indra's stock has tripled in value during the strategic plan period. While the stock appears fairly valued, the growth prospects and strong financial performance suggest that the stock may continue to perform well. Investors should monitor the company's progress in achieving its targets and adjust their expectations accordingly.

3. NewsRoom

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European Defense Stocks Fall as U.S. Pressures Ukraine to Accept Peace Deal

Nov -24

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High Growth Tech Stocks to Watch in November 2025

Nov -14

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Airspace and Procedure Design Industry Research Report 2025-2033 Featuring Adacel, Leonardo, Frequentis, Advanced Navigation and Positioning, Honeywell, L3Harris, Indra Sistemas, RTX, Saab, THALES

Oct -27

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High Growth Tech Stocks To Watch In October 2025

Oct -16

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High Growth Tech Stocks to Watch in September 2025

Sep -17

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

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Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.10%)

6. Segments

Minsait (IT)

Expected Growth: 8.0%

The IT sector is expected to grow faster than the global average due to increasing demand for digital transformation. Minsait's diversified industry exposure and comprehensive service offerings make it well-positioned to capitalize on this trend, driving growth above the global average.

Air Traffic

Expected Growth: 6.0%

The air traffic segment is likely to grow at a slower rate due to the ongoing impact of the pandemic on air travel. However, as air travel recovers, the demand for advanced air traffic management systems will drive growth, albeit at a more conservative rate than the global average.

Defense

Expected Growth: 7.5%

The defense segment is expected to grow in line with increasing global defense spending. The demand for advanced defense systems, including cybersecurity and command and control, will drive growth, making it a relatively stable segment.

Mobility

Expected Growth: 8.5%

The mobility segment is poised for strong growth due to increasing urbanization and the need for efficient, sustainable transportation systems. The demand for smart mobility solutions will drive growth, making it a high-growth segment.

Eliminations

Expected Growth: 7.1%

As eliminations are not a revenue-generating segment, the growth rate is assumed to be in line with the global average. This segment does not contribute to revenue growth but is necessary for accurate financial reporting.

7. Detailed Products

Defense and Security Systems

Indra provides a range of defense and security systems, including command and control systems, communication systems, and cybersecurity solutions.

Air Traffic Management Systems

Indra offers air traffic management systems, including air traffic control systems, navigation systems, and surveillance systems.

Transportation Systems

Indra provides transportation systems, including rail signaling systems, rail traffic management systems, and intelligent transportation systems.

Healthcare Technology

Indra offers healthcare technology solutions, including electronic health records, hospital information systems, and medical imaging systems.

Financial and Insurance Solutions

Indra provides financial and insurance solutions, including core banking systems, insurance policy management systems, and risk management systems.

Cybersecurity Solutions

Indra offers cybersecurity solutions, including threat detection systems, incident response systems, and cybersecurity consulting services.

Digital Transformation Services

Indra provides digital transformation services, including IT consulting, digital strategy, and innovation services.

8. Indra Sistemas, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Indra Sistemas, S.A. is medium due to the presence of alternative solutions in the IT consulting and technology services industry.

Bargaining Power Of Customers

The bargaining power of customers for Indra Sistemas, S.A. is low due to the company's strong brand reputation and the complexity of its services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Indra Sistemas, S.A. is medium due to the presence of multiple suppliers in the market and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants for Indra Sistemas, S.A. is high due to the relatively low barriers to entry in the IT consulting and technology services industry.

Intensity Of Rivalry

The intensity of rivalry for Indra Sistemas, S.A. is high due to the presence of several established players in the market and the company's need to continuously innovate to stay competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.29%
Debt Cost 8.64%
Equity Weight 60.71%
Equity Cost 8.64%
WACC 8.64%
Leverage 64.73%

11. Quality Control: Indra Sistemas, S.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Computacenter

A-Score: 5.7/10

Value: 4.9

Growth: 6.9

Quality: 5.7

Yield: 5.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Indra Sistemas

A-Score: 5.3/10

Value: 3.4

Growth: 6.9

Quality: 5.6

Yield: 1.9

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Softcat

A-Score: 5.2/10

Value: 2.0

Growth: 5.8

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Stock-Card
Reply

A-Score: 5.0/10

Value: 3.4

Growth: 8.0

Quality: 6.9

Yield: 1.2

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Bechtle

A-Score: 4.8/10

Value: 5.3

Growth: 6.6

Quality: 4.9

Yield: 3.1

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

Stock-Card
TietoEVRY

A-Score: 4.8/10

Value: 6.8

Growth: 1.9

Quality: 1.8

Yield: 9.4

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.7$

Current Price

48.7$

Potential

-0.00%

Expected Cash-Flows