Indra expects stronger defence growth in 2026, backed by TESS deliveries

By Gemma Guasch and Mireia Merino Thu, October 29, 2026 at 12:06 PM UTC

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By Gemma Guasch and Mireia Merino

Oct 29 (Reuters) - Indra, Spain’s technology and main defence company, raised expectations for defense revenue growth to around 80% in 2026, mainly from its TESS Defence VCR 8x8 Dragon vehicle deliveries, the company said after posting its third-quarter results on Thursday.

Indra shares were up 3.8% at 10:09 GMT.

The company, which is partly state-owned, has taken on a bigger role in Spain's defence and aerospace sector after the country pledged to lift defence spending to 2% of gross domestic product. Indra participates in both Spanish Special Modernisation Programs and NATO contracts.

• TESS Defence VCR 8x8 Dragon vehicle deliveries should exceed guidance of 90 units by year-end, CEO Josep Maria Recasens said in a call with analysts

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• Revenue rose 26% year-on-year to €1.47 billion ($1.64 billion), with Space growing 329% and Defence 95%

• Indra's reported backlog reached €22.2 billion in the first nine months of the year, up 133%

• Net order intake grew 139% in the third quarter, boosted primarily by a €1.9 billion IRIS² satellite contract from the European Commission

• About 70% of IRIS² revenue are expected before 2030, while most commercialization capex would occur between 2031-2035

• Acquisitions contributed €529 million to revenue: in Defence inorganic growth was driven by the acquisition of TESS Defence, in Space by Hispasat and Hisdesat and in Air Traffic by Micronav and Global ATS

• Spain's importance for the company's business "continued to increase during the period, a trend that we expect to continue in the coming periods," Recasens added, as the market represented 58% of its nine-month revenue

($1 = 0.8959 euros)

(Reporting by Gemma Guasch and Mireia Merino; Editing by Ronojoy Mazumdar)

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