“The highlights of the results for the first nine months of 2022 are the clear improvement in operating profitability, the acceleration in revenue growth, the sustained demand from our customers, which showed no signs of weakness in this last quarter despite the generally weaker macroeconomic outlook, and again the strong cash generation in the third quarter of the year. The strength of the commercial activity is well reflected in the double-digit growth of our order intake and backlog, which translates into double-digit revenue growth for Indra as well.
Even more noteworthy is the improvement in profitability, reflected in the year-on-year growth of the operating margin, driven by revenue growth, the improved supply mix and efficiencies achieved, and despite the environment of strong wage inflation in the businesses and markets where we operate.
Finally, for another quarter this year, the positive cash generation stands out, which reached €54m in 9M22 and is the best in the last ten years for the first nine months of the year, reducing our financial leverage to 0.6x compared to 1.7x in September 2021.
With one quarter to go before the end of the 2022 financial year, these solid results allow us to reiterate all our annual targets for 2022, which we had already increased in our previous earnings communication, all against the backdrop of a generally worsening global macroeconomic environment.”
Comments shared by Ignacio Mataix, Chief Executive Officer of Indra.
Transport & Traffic highlights
- 9M22 Transport & Traffic revenues went up +6% in local currency, registering both Air Traffic and Transport that same growth.
- Revenues in the Air Traffic segment in 9M22 increased +6% in local currency, thanks to the positive performance posted in Spain (higher activity with Enaire) and in the European programs (Belgium and Norway), despite the lower activity registered in AMEA (China, Australia and Bahrain). The distribution by region was: Europe (c. 40%), AMEA (c. 30%) and Spain (c. 25%).
- In the Transport segment, sales in 9M22 grew by +6% in local currency, thanks to the higher activity showed in Spain (T-Mobilitat interurban project and higher activity in rail projects), which offset the difficult year-on-year comparison in AMEA, which saw the completion of the implementation phase of the Mecca-Medina high-speed train project in Saudi Arabia. The activity in this segment was distributed between Spain (c. 45%), AMEA (c. 30%) and America (c. 20%).
- 3Q22 Transport & Traffic sales went up +14% in local currency, showing both Transport (+15% in local currency), aided by higher activity in America (Mexico, Colombia and Peru) and in AMEA (Egypt and India), as well as in Air Traffic (+13% in local currency, due to increased activity in all geographies, both in Spain and in the European and international programs, linked to the general recovery in air traffic) strong growth.
- Region-wise, most of the activity of the vertical in 9M22 was concentrated in Spain (c. 35% of sales), AMEA (c. 30% of sales), and Europe (c. 20% of sales).
- Order intake in 9M22 increased +22% in local currency, bolstered by both Air Traffic (+23% in local currency, due to the contract with Avinor in Norway and new contracts with Enaire in Spain) and Transport (+21% in local currency, due to the collection systems contracts signed in Spain and communications systems at Lima’s airport).