Indra: Defense and ATM momentum offset slowing Minsait

Research evidence excerpt

Indra: Defense and ATM momentum offset slowing Minsait

Richard Nguyen +33 1 42 13 54 22 richard.nguyen@bernsteinsg.com 24 July 2026

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WE REITERATE OUR OUTPERFORM RATING ON INDRA

We reiterate our Outperform rating on Indra because the 2Q26 results reinforce confidence in the company’s medium-

term growth and earnings trajectory. The quarter delivered a clear beat versus both Bernstein estimates and Visible Alpha

consensus, with revenue of €1.84bn exceeding consensus by 3% and EBIT of €198m exceeding consensus by 14%. More

importantly, the beat was driven by operational execution rather than one-off factors, with strong contributions from Defense,

Space and Air Traffic Management. The combination of accelerating activity in defense programs, improving profitability and

record backlog growth strengthens the investment case despite a more uncertain macroeconomic backdrop and a decelerating

growth trajectory expected at Minsait.

The core of the investment thesis remains Indra’s exposure to structurally attractive Aerospace & Defense markets.

Defense continues to be the group’s primary growth engine and was the largest contributor to the quarterly upside. Revenue

increased 157% yoy in 2Q26, supported by TESS, Special Modernization Programs, Eurofighter activity and radar projects. Order

intake grew 195% yoy and backlog reached €11.7bn, providing strong visibility into future revenues. These figures reinforce our

view that Indra remains one of the key beneficiaries of rising defense spending and modernization programs.

The strength of the order book supports confidence that current growth is sustainable beyond a single quarter. Group

order intake increased 60% yoy to €2.15bn, while backlog reached €20.5bn, up 117% yoy. Growth was broad-based across