Indra and the controversial defense boom in Spain

MadridIndra was a relatively unknown company, associated with words like election counting, transportation, technology, or borders—it's a Frontex contractor. However, for some time now, it has not only captured media attention, but the terms defense and armament have also been added to the list. And this has been a deliberate addition. About five years ago, Indra began a strategic shift with a strong commitment to these two businesses, to the point that today it aspires to be the flagship of the defense sector in Spain. In fact, some even mark a key date on the calendar: September 2019, when Spain, under Pedro Sánchez's leadership, designated Indra as the "national coordinator" of the European program for the fighter jet that was to replace the Eurofighter. Today, the decision is seen as a declaration of intent. Let's take it step by step. Indra is not just any company, and not only because it's listed on the Ibex 35. "It has always been a company with strong vested interests," summarizes a business source familiar with the sector. Through the State Industrial Holdings Company (SEPI), the Spanish government's investment arm, the State is the largest shareholder, with 28% of the share capital—it is also one of its main clients through the Ministry of Defense.

"The alignment with the government in power has caused a lot of noise and, deep down, it's not very unorthodox because it's a publicly traded company," adds the same source. An example of this commotion occurred in 2020, when the Catalan Marc Murtra, current president of TelefónicaHe arrived at Indra as non-executive chairman. At the time, his ties to the Socialist sphere, and therefore to Sánchez's government, which sponsored his appointment, did not go unnoticed. However, his predecessor also carried a political label: Fernando Abril-Martorell was appointed by Mariano Rajoy (PP) in 2015.

The Catalan's arrival sparked a political row between Socialists and Popular Party members, but also triggered the dismissal of five councilors from the Abril-Martorell era. The peace pipe came with the appointment of the engineer and businessman José Vicente de los Mozos as CEO.

"His arrival [of Marc Murtra] was a strategic decision," says a source. With him on board, the State began to strengthen its position in the company: in just under five years, its stake in the share capital has increased from 18% to 28%. The new direction was defined as the drums of war beat loudly in Europe and international pressure to invest in defense grew. The mandate was to focus efforts on becoming a Spanish—but also European—giant in the defense sector, a strategy that clashed with the previous leadership's focus on consulting and technology. The technology subsidiary Minsait, which now accounts for 60% of Indra's revenue, remains as a symbol of that era.

All of this was incorporated into a new strategic plan conceived throughout 2023 and presented in 2024 under the name Leading the FutureThis roadmap highlights two new areas: space and defense, currently Indra's stronghold. But the definitive implementation of this new strategy arrived in 2025, beginning with Murtra's replacement by Ángel Escribano, Indra's current president, at the proposal of SEPI, the Spanish government. Escribano was already familiar with the defense industry. He served on Indra's board of directors representing Escribano Mechanical & Engineering (EM&E Group), which he co-founded with his brother Javier Escribano. In 2023, the Escribano group acquired 3% of Indra and now controls 14.3%. His presidency at Indra required him to relinquish his positions in the family business, but he retains a stake. Other major shareholders in Indra include the Basque defense company SAPA (7.9%) and the Amber fund (7.3%), the main owner of Prisa.

Escribano, the big pending purchase?

The steps taken by Ángel Escribano as president have accelerated the strategy that Murtra began to spearhead. "We want to be the driving force behind growth," the executive stated in an interview shortly after being appointed president. He also made it clear that this meant growing in size, that is, through acquisitions.

Indra will close the year with almost ten acquisitions. Highlights include the purchase of the military vehicle manufacturer Tess Defence; the acquisition of the Asturian plant El Tallerón from Duro Felguera; the acquisition this week of Grupo CPS's drone technology; and the final purchase of Hispasat, the Spanish satellite operator. and its subsidiary Hisdesat, linked to the military business

The question that remains unanswered as we look ahead to 2026 is the potential acquisition of the family business co-founded by Ángel Escribano (EM&E Group), a move that has raised concerns about a potential conflict of interest. Sources at Indra have declined to comment on this possible transaction. In any case, the company's board of directors has stated that it considers the move "coherent." However, the matter will not be resolved until the current fiscal year figures for both companies are audited. The transaction would represent a significant financial outlay for Indra and, consequently, for the Spanish State, which is its largest shareholder. Speculation suggests figures ranging from €1 billion to €2 billion.

The Escribano brothers ventured into the arms sector in 2010, taking over the disc brake repair shop their father had established in the Madrid municipality of Coslada in the 1980s. Since then, they have consistently secured contracts, primarily internationally. Today, the group has a presence in 25 countries, from Peru to the United Arab Emirates, and has risen to prominence as a manufacturer of components for the defense industry. In 2024, it recorded a net profit of €112.5 million, 13 times more than the €8.8 million of the previous year, according to data from the Mercantile Registry compiled by Europa Press. However, some voices caution that basing this assessment on the latest figures only considers "exceptional" orders resulting from "the current economic climate."

With Ángel Escribano at the helm, Indra has fully embraced this arms-driven approach: a new business area dedicated to weaponry, called Indra Weapon & Ammunition, has been launched. This required amending the company's bylaws. Additionally, the IndraMind business area has been created. with cybersecurity and cyber defense at the centerHowever, in this case the intention is not only to provide armies, but also emergency services or the police in a context of demonstrations or border control. as NOW explained.

However, the potential acquisition of Santa Bárbara, the Spanish subsidiary of the American company General Dynamics, has fallen through. Escribano's intentions sparked a war of words between the two companies, which are also vying for many future public contracts, especially those related to armored vehicles. Industry sources now downplay the conflict: "You don't always have to think about an acquisition; collaboration is also possible. Indra needs it because there are products it doesn't have," they say. In fact, throughout this year, the company has forged alliances with as many as 13 different companies. This industrial network allows Indra to explore business synergies and indirectly receives some of the millions it invests. The company's leadership has argued on more than one occasion that this helps them grow. One example of these alliances is with the Catalan company Ficosa, with which Indra signed an agreement to develop vision systems for military armored vehiclesIn Catalonia, Indra has up to 12 offices spread across the region and 3,500 employees, and its intention is to continue growing around "high-value projects in defense, cybersecurity and cyber defense, space, mobility, industry, and public services," according to company sources.

Rearmament, a lifeline

"The [defense] sector is experiencing its best moment in history," summarizes a business source, and Indra—nor the Escribano group—is exempt, as the figures demonstrate. The war in Ukraine brought about a paradigm shift in the European military, marked by the aspiration to regain military autonomy. This objective has only grown stronger with the outbreak of the conflict in the Middle East and the geopolitical tensions with the United States. Coinciding with this rearmament, Indra's profits increased by 35% in 2024, reaching €278 million. The summary of all this: an €80 billion European plan and the NATO agreement, under the watchful eye of Donald Trump, for countries to allocate 5% of their gross domestic product (GDP) to military spending by 2035. Only Spain agreed to the exception of remaining at a spending level of 2.1% of GDPThis year, it was supposed to reach 2% of GDP.

In the Spanish case, this has translated into an expenditure of €10.471 billion in 2025 alone. Of this, the Spanish government approved €6.9 billion in a single day, as explained by the ARA. Indra, alone and in collaboration with other companies—from Escribano to Telefónica—has had access to almost all of it: €6.327 billion.

Faced with this deluge of millions, the Stockholm International Peace Research Institute (SIPRI) has warned that "increased military spending leads to periods of greater instability," and some of its research questions the concept of militarized security that is being imposed as the only possible security model.

At the same time, not everyone is happy about the concentration of funds in Indra. Business sources within the sector fear the creation of a kind of "monopoly" in which the company's suppliers will have little room to maneuver when negotiating terms. In fact, the 2019 decision by Pedro Sánchez's government to award Indra the role of "national coordinator" for the Eurofighter replacement program already generated unease within the sector. Specifically, within Airbus, which was also vying for a role, business sources remind ARA. These same sources believe that the Ministry of Industry, which oversees a large number of the newly approved programs, is responsible for allaying these fears. Sources within this ministry emphasize that the increased defense investment aims to "favor" companies like Indra, but also Navantia, ITP Aero, Oesía, Escribano, and Airbus. "The aim is to promote an ecosystem in which SMEs play a significant role through leading companies," they explain.

New strategic plan

But Indra is still a small company compared to European defense giants like Leonardo or Thales Group. While the Spanish company expects to exceed €5 billion in revenue by 2025, the rest of the region's revenue is double that. Indra has downplayed this factor, pointing out that Spain started later in the race to have a strong military industry. The company's ambition is to continue growing and take advantage of the planned public spending. It is estimated that, looking ahead to 2026, it will revise the strategic plan presented in 2024, which projected revenue of €6 billion next year and a turnover of up to €10 billion by 2030. But there are always companies that profit from a crisis, and Indra has announced that it is bringing forward its roadmap by a year. But the technological advances the company makes, and not just the increased public funding it receives, will also be key in determining its business model. "If you don't develop your own technology to compete, you become an assembler," one source summarizes.