Indra Strengthens Its Defense Leadership Indra Strengthens Its Defense Leadership Amid Talent Exodus from Santa Bárbara
By Ion Jauregui – Analyst at ActivTrades
Indra has intensified its commitment to the defense sector with a strategic move that marks a turning point in the Spanish industry: the recruitment of more than 15 executives from Santa Bárbara Sistemas, a subsidiary of General Dynamics, with around twenty more in the process of joining. This move comes amid fierce competition for defense talent, consolidating the Spanish tech company’s leadership in the land sector with its new division, Indra Land Vehicles.
Fundamental: Growth, Diversification, and Industrial Autonomy
Indra’s decision to compete independently in the development and production of armored vehicles is part of its Leading the Future 2030 strategic plan, aimed at strengthening its role as a national integrator in defense, security, and dual-use technology. The acquisition of the El Tallerón plant (Gijón) from Duro Felguera for €3.6 million, along with an additional investment of over €40 million to transform the facility, demonstrates a clear focus on vertical integration and technological autonomy.
The announcement of the delivery of 57 8x8 “Dragón” vehicles by year-end represents a key milestone after delays and internal disputes within the Tess Defence consortium. In addition, Indra has secured nearly 90% of public funding allocated to the Special Modernization Programs (PEM) in defense, ensuring resources to expand its presence in vehicle projects, command and control systems, and electronic capabilities.
From a financial perspective, the company maintains expanding operating margins and a strong order book, driven by contracts in defense, digitization, and air traffic management. This repositioning of its land business strengthens medium-term growth potential and reduces exposure to the civil sector.
Technical: Uptrend and Key Consolidation Levels
From a technical perspective, Indra (BME: IDR) has maintained a sustained uptrend since early 2024. After several upward impulses, the stock has continued its positive momentum throughout 2025, accumulating a year-on-year gain exceeding 35%. After reaching highs around €51.25, the stock entered a consolidation phase supported by the 50-day moving average (€46.67), respecting the main uptrend line. Currently, the control point is around €38.58, corresponding to the previous accumulation zone before the latest upward impulse.
Technical indicators show strength but suggest a potential short-term adjustment:
The RSI remains in overbought territory, stabilizing above 60%, indicating a technical pause after strong gains.
The MACD is approaching a bearish crossover, with the signal line above the indicator and the histogram entering negative territory, potentially signaling a short-term correction.
The 50-day moving average acts as the first significant support, with the next key level at €41.36. A break below this level could take the stock back to the control point at €38.58.
On the upside, a sustained break above the current highs (€51.25) would open the door to new targets around €55, keeping the underlying bullish structure intact.
Offensive in the Armored Vehicles Sector
Indra’s offensive in armored vehicles and its ability to attract strategic talent from Santa Bárbara reinforce its position as a central player in the Spanish defense ecosystem. In a context of increasing European military spending and a push for industrial sovereignty, the company consolidates a long-term vision based on innovation, technological independence, and operational efficiency.
With solid fundamentals and a robust technical structure, Indra stands out as one of the most attractive stocks in the defense sector in the Spanish market, maintaining the interest of both institutional and retail investors in the coming quarters.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
