Spanish defence firm Indra sees first quarter profits surge 40%
A Spanish flag flies above part of the Madrid skyline, Monday July 2, 2012. (AP Photo/Paul White)
The Spanish technology and defence company Indra Sistemas released its first quarter 2024 earnings on Monday, clocking in a revenue of €1.1 billion, up from €917 million in Q1 2023. This was a rise of about 22%, boosted by robust growth in the Mobility, Defence, Air Traffic Management (ATM) and Minsait departments.
Net profit surged to €61 million in Q1 2024, from €44 million in the corresponding quarter in 2023, a jump of approximately 40%. Similarly, EBITDA also grew to €117 million in the first quarter of the year, from €92 million, while EBITDA margin rose to 10.4% from 10% in Q1 2023.
Basic earnings per share (EPS) clocked in at €0.35 in Q1 2024, up from €0.25 in the same quarter last year, which was a surge of almost 42%. Operating margin was €104 million in Q1 2024, up from €76 million.
Marc Murtra, the chairman of Indra said in a statement, “We’ve made a firm start to the implementation of our strategic plan, the first milestone being the approval by the board of directors of the creation of Indra Espacio, an entity that will become the cornerstone of our activities in the space business. These are solid quarterly results and a small first step towards the execution of our strategy.”
Indra’s CEO, Jose Vicente de los Mozos, said: “The first quarter of the year has been characterised by the significant growth of our commercial and financial indicators and the improved profitability and cash generation, thanks to the hard work of all the men and women who are part of Indra.
“All of them, without exception, are focused on the effective deployment of our strategic plan-Leading the Future- that was announced on 6 March. There is no doubt that these quarterly results constitute an excellent starting point to achieve the goals we’ve set ourselves.”
Why has Indra done so well in the first quarter?
One of the major reasons for Indra’s first quarter success is increased interest in the European defence sector, as regional tensions and geopolitical uncertainties continue to rise in the last few years. The Russia-Ukraine war, in particular, has led to several European nations becoming even more aware of potential national threats.
The company has also been trying to integrate its aerospace and defence arms for the last few months, in order to have a strengthened position in Spain, and from there, the rest of Europe.
Murtra said, as reported by Defence News, “Europe is entering a new major defence investment cycle after more than 30 years, characterised by a significant shift in focus towards technology, a greater share of defence systems and the expansion of multi-domain capabilities.
“Some of our North Atlantic Treaty Organisation (NATO) allies within Europe, such as the UK, Italy and France, have already made significant strides in consolidating defence and aerospace sectors.
“This process is crucial to achieve strategic autonomy in Spain, and to guarantee its influence at the global scale. With our strong positioning and capabilities, we aspire to lead the Spanish national ecosystem in less than 10 years.”