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• EBITDA Growth: Increased by 21% compared to 2023.

• EBIT Growth: Increased by 27% compared to 2023.

• Net Income Growth: Increased by 26% compared to 2023.

• Backlog: Exceeded EUR7 billion.

• Net Debt: Reduced to EUR70 million from EUR233 million in September 2023.

• Revenue Growth: 13% increase driven by all business segments.

• Defense Revenue Growth: 25% increase, driven by FCAS and integrated systems.

• Air Traffic Management Revenue Growth: 35% increase, with contributions from Colombia, UAE, Belgium, and acquisitions.

• Mobility Revenue Growth: 16% increase, notably in Mexico, Peru, and the UK.

• Minsait Revenue Growth: 6.5% increase, driven by public administration and healthcare.

• Third Quarter Revenue Growth: 9% increase.

• Third Quarter Net Profit Growth: 24% increase.

• Free Cash Flow: EUR25 million generated in the third quarter.

• Organic Growth: 11% for the first nine months of 2024.

• International Revenue: Accounts for 50% of total revenue.

• Revenue Per Employee: Increased by 9% annually.

• Defense EBITDA Margin: Above 20% for the first nine months.

• Defense EBIT Margin: 17.9% for the first nine months.

• Air Traffic Management EBIT Margin: 12.3% for the first nine months.

• Mobility EBITDA Margin: Improved to 4.4% from -2.8% in the first nine months of 2023.

• Minsait EBIT Margin: Improved to 5.6% for the first nine months.

• Free Cash Flow (Nine Months): EUR94 million.

• Net Debt to EBITDA Ratio: 0.1 times.

• Gross Debt: Reduced to EUR539 million.

• Cash Position: EUR469 million at the end of September.

• Warning! GuruFocus has detected 2 Warning Sign with ISMAY.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Indra Sistemas SA (ISMAY) reported significant financial growth with EBITDA up by 21%, EBIT by 27%, and net income by 26% compared to the previous year.

• The company's backlog has surpassed EUR7 billion, indicating strong client trust and a robust pipeline.

• Net debt has been significantly reduced to EUR70 million from EUR233 million the previous year.

• The company has made strategic acquisitions, including TESS Defense and MQA, to bolster its capabilities in defense and digital solutions.

• Indra Sistemas SA (ISMAY) is expanding its global presence, particularly in North America and APAC, with new contracts in air traffic management.

Negative Points

• The Minsait division experienced slower revenue growth in Q3 compared to previous quarters, partly due to the absence of election-related business.

• There is uncertainty in the business environment, which could impact future growth, particularly in the Minsait division.

• The integration and expected revenue contribution from TESS Defense remain unclear, with no immediate impact on EBIT or EBITDA levels.

• The company faces challenges in maintaining profitability in newly acquired businesses like Selex and Park Air due to lower initial margins.

• Currency fluctuations, particularly in Argentina, Brazil, and Mexico, have impacted financial results, contributing to a EUR25 million forex impact.