Indra lifts 2026 defence growth outlook on TESS vehicle deliveries

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Indra 2026 defence outlook

Highlights

Indra raised its 2026 defence revenue growth outlook to nearly 80%, driven by strong TESS Defence VCR 8x8 Dragon vehicle deliveries surpassing guidance.
Third-quarter revenue jumped 26% year-on-year to 1.47 billion euros, with Defence up 95%, Space up 329%, backlog at 22.2 billion euros, and net orders up 139%.
Indra's nine-month revenue is 58% from Spain as recent acquisitions and domestic defence plans amplify its expansion, notably the 1.9 billion euro IRIS² contract.

Stronger defence outlook and order momentum

As reported by Reuters, Indra raised its expectations for defence revenue growth to around 80% in 2026 after publishing third-quarter results on Thursday, with TESS Defence VCR 8x8 Dragon vehicle deliveries providing the main boost.

Chief Executive Josep Maria Recasens said on a call with analysts that deliveries of the Dragon vehicles should exceed guidance of 90 units by year-end. Indra's shares were up 3.8% at 10:09 GMT.

Revenue rose 26% year on year to 1.47 billion euros, while Space grew 329% and Defence increased 95%. Reported backlog reached 22.2 billion euros in the first nine months of the year, up 133%, and net order intake rose 139% in the third quarter, supported mainly by a 1.9 billion euro IRIS² satellite contract from the European Commission.

Spain's role in growth strategy

Indra said about 70% of IRIS² revenue is expected before 2030, while most commercialization capital expenditure would occur between 2031 and 2035. Acquisitions added 529 million euros in revenue, with defence inorganic growth driven by the purchase of TESS Defence, space by Hispasat and Hisdesat, and air traffic by Micronav and Global ATS.

Spain continues to gain weight in the company's business, with the market accounting for 58% of nine-month revenue. Recasens said that importance is expected to keep increasing in coming periods, underscoring how domestic defence spending plans are shaping the group's expansion.

In our earlier coverage of Europe’s uneven growth outlook, we discussed how the IMF’s latest forecasts pointed to a fragmented recovery, with improving prospects in Germany and the UK, continued relative strength in Spain, and persistent weakness in France. We also noted that inflation risks, tight fiscal constraints, and competitiveness gaps could shape borrowing conditions and investor sentiment, keeping credit risks elevated in weaker parts of the region.

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