Indra plans to reach 10,000 million in turnover in 2030

Indra plans to more than double its size by the end of the decade, going from 4,300 million in 2023 to a turnover of 6,000 million in 2026 and 10,000 million in 2030 within the framework of its strategic plan, which fundamentally includes orienting the company more to the defense and space business, with the creation of a new company for the space business. To finance this growth, Indra plans to give entry as a minority or majority to new shareholders in Minsait, the information technology business, which would also incorporate the Mobility area – systems for highways, trains and subways – which would also be , therefore, totally or partially divested.

Indra, the large information technology and defense company, plans to more than double its size in the next seven years, going from 4.3 billion in revenue achieved in 2023 to reaching a turnover of 6,000 million in 2026 and 10,000 million in 2030 within the framework of its 2024-2030 strategic plan, which the president, Marc Murtra and the CEO, José Vicente de los Mozos , will announce to investors today and of which a presentation has been published in the CNMV.

The growth in income would be accompanied by an increase in profitability, since the EBITDA margin, which in 2023 stood at 10.3%, would be more than 12% in 2026, – the intermediate milestone of the plan that is presents today – and more than 14% in 2030. For its part, ebit would climb from 8% in 2023 to 10% in 2026 and 12% in 2030. At the same time, a strong increase in generation is also expected of cash (Free Cash Flow, FCF), which would go from accumulating 900 million in the period 2024-2026 to skyrocket to between 2,000 and 2,500 million for the period 2027-2030. In this way, the company indicates that in the seven-year period contemplated in the strategic plan (2024-2030) the accumulated FCF would be more than 3,000 million euros.

Billion Space Company

Indra ‘s plans include the creation of a new company for the Space business, which on the one hand would bring together existing capabilities in the group and on the other would include long-term partners, with the aim of achieving a turnover of one billion euros in 2030 . Indra also plans to bring minority or majority shareholders into Minsait, the information technology business.

The company has explained in a presentation to the CNMV that the structure of functions will evolve from the current model, which is divided into four large areas ( Defence, Air Traffic Control, Mobility – the train, subway and highway ticketing business, and technology for the railway sector – and the Minsait area) to a structure of five divisions in which the Mobility area disappears from the Transportation and Defense division and becomes integrated into Minsait, with the purpose of providing entry into this entire group (Minsait+Movilidad) to new shareholders, both minority and majority. In addition, a new Space area and another of New Industrial Businesses are created.

More Defense and Aerospace weight

One of the forecasts of the plan is that the generation of margins is oriented towards the defense and space business, so that if in 2023, the two divisions (Minsait on the one hand and Transport and Defense on the other) were practically divided into parts The generation of ebitda is equal, and in 2026 this balance will have shifted towards the Defense and Space businesses, which will generate approximately two-thirds of the group’s ebitda.

Regarding the new Space area, Indra plans to create a new space subsidiary that can manufacture and launch satellites. But in addition, this company should also be able to operate and exploit satellites, since it is the largest market segment by far. If the space segment area (the equipment on board the satellite) moves an accessible market of 15,000 million euros, with an accumulated annual growth until 2030 of 2/3%, the ground segment area of the control stations has a market of about 14,000 million euros, with a 3/4% accumulated growth until 2030. But the operation and exploitation area has a market of 106,000 million, with a growth of 6/7% until the end of the decade.

In that sense, one of the possibilities that have been considered would be the purchase, by Indra , of Hispasat, the satellite exploitation company, which had a state origin and which for some years has been controlled by Redeia (Red Electrica) and also that of Hisdesat, the company specializes in satellite communications for the Spanish army.

Indra points out in the presentation that it has already identified companies as both national and international objectives , along the value chain of the Space business to expand the capabilities of the new firm.

The new Space company will have civil and military applications from guaranteeing the European autonomy of communications to new generations of satellites for surveillance and navigation. But also in the civil area, with applications in civil communications, the provision of broadband coverage or machine connection (IoT) use cases.

5,000 jobs

Indra also plans to add more than 5,000 jobs with high technological value and digital profiles until 2026, with the aim of strengthening its capabilities.

To accelerate mergers and acquisitions, more than 75% of acquisition expenses will go to the Defense and Aerospace areas. Minsait will have more firepower for M&A with the arrival of a new partner. The focus of the acquisitions will be in Spain, Western Europe, the Middle East and North America.

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