Indra (AO) | Buy | CFO tour feedback: no major surprises, execution remains the focus

Research evidence excerpt

Indra (AO) | Buy | CFO tour feedback: no major surprises, execution remains the focus

iterated its focus on delivering FY26 guidance (EUR7bn revenues, EUR700m

EBIT) and executing against its c.EUR20bn backlog, with Defence expected to remain the main growth driver.

New strategic plan timing remains open. Following the appointment of a new CEO, management indicated that the timing of the

CMD will be determined once the new CEO is in place. While a presentation before year-end remains possible, no firm timeline

has been set. In any case, management stressed that the current strategy remains in place and execution continues as normal.

Defence growth set to accelerate. The company expects Defence revenues (ex-Space) to exceed EUR1bn in H1 2026E, supported

by PEM-related revenues and accelerating deliveries at TESS Defence. Management remains confident in the outlook despite the

slower-than-expected recognition of PEM revenues in Q1.

2026 PEMs expected shortly. While no details were provided, management remains optimistic and expects the next wave of

programmes to focus on areas such as anti-drone systems, electronic warfare, cyber, naval systems, space and military

modernisation. The overall size could be smaller than the 2025 package, given last year's multi-year nature.

FCAS remains a key area to monitor. During the meeting, management reiterated that FCAS is a flagship European programme.

While the company is not involved in the ongoing discussions between the industrial partners and governments, and cannot rule

out potential reconfigurations of the programme, management remains confident that the broad programme will continue.

However, following the meeting, press reports suggested that France and Germany could abandon the current fighter aircraft