It is one thing to spend 5% of GDP to rearm and a very different one is to sell weapons to Europe. Spain that has it very clear

The “pacifist” Spain, which has faced the United States alone by questioning the “unit” of NATO compared to that 5% defense expense pursued by Washington, lives a paradox. Because While he refuses of the rearma, or at least the figures that are handled, has the opportunity to accompany a national company in the epicenter of that Dispension in artillery and military resources for the old continent.

It We count A few days ago. The first track Morgan Stanley gave it: Indra had raised its target price by 118%.

A crossroads. Of all this did an analysis The Financial Times. In the epicenter of a continent that accelerates Your rearmeSpain is presented as the more particular case Of all: The country historically more reluctant to military spending in NATO now tries Turn Indraa company of civil roots and computer tradition, in a kind of European defense champion.

Partially supported by the State, which It has 28% of its capital, Indra is undertaking an ambitious (and risky) transformation with the aim of rivaling with consecrated names such as Bae Systems, the Almighty Rheinmetall or Thales.

New DNA. Its new president, Angel Escribanoentrepreneur with industrial DNA forged in the manufacture of turrets for combat cars in the Middle East, has placed the reconquest of manufacturing capabilities as cornerstone of this new stage. “There has never been an opportunity like this in three decades of defense in Spain,” has declaredaware that the Expenditure supercycle European military, triggered by war in Ukraine, represents an unrepeatable occasion for the company.

From radar to armored ones. Until recently, Indra It was synonym of air traffic control systems or military missions management software. His presence in defense was important but discreet, focused on digital solutions rather than tangible product. However, in the middle of a war where drones, artillery and armored scenethe company now seeks to occupy the physical space of The military industry: Also manufacture the “metal”, not just electronics.

In June, he raised his participation in Tess defends 51%taking control of the consortium that produces The VCR Dragon For the Spanish army. The step was not exempt from friction: Indra faced Santa Barbara Systems (controlled by the American General Dynamics) for the course of the company, even suggesting its purchase. Although this was rejected, interest persists and the company explores other acquisitions, including the defense division from Iveco In Italy.

Buy and buy. The Financial Times counted That to reach 10,000 million euros of billing in 2028 (a two -year advanced target compared to the original plan), the road map includes more than 20 possible purchase operations in Europe. On the horizon even an option as delicate as tempting appears: acquire Mechanical & Engineering notary (EM & E), the armament firm founded by the president himself, which, a priori, would create an obvious conflict of interest, but also a technical synergy difficult to match.

The civil DNA dilemma. Despite of the turn Towards the defense, Indra remains a mostly civil company: its IT unit, MINSAIT, represents 62% of your income, compared to 21% of the military area. Minsait competes in the corporate world with giants such as Capgemini or Infosys, providing technological services to banks, health systems and public administrations. Some analysts and former director see in this duality a Structural contradiction: defense and services are “water and oil”, Explain the FT.

In fact, when in 2024 the company announced that the defense It would be his priority And that Minsait would become “not strategic”, the market reacted positively Given the possible sale of your business not related to war. The company failed to close any agreement and now notary states that it only wants burn off the branch of payments, while it begins to revalue the rest of the unit as a source of dual use technologies (AI, cybersecurity or cloud solutions) that can adapt to the military environment. This reconsideration, although pragmatic, keeps alive the tension between what the market desires (a purely defensive company) and what the management is willing to offer.

Reputation and influence. It is the last of the legs that was analyzed in the Times report. Although their actions have quadrupled since the Russian Invasion of Ukraine and its market value already exceeds 6,000 million In euros, Indra continues to quote with a strong discount regarding its European counterparts. While Bae is valued at 25 times its planned benefits, and Rheinmetall touches 60 times, Indra stays in just 18.

Reasons? According to analysts As Beatriz Rodríguez de Bestinver, the growing interference of the Spanish government in the corporate strategy, which generates uncertainty about economic logic behind some decisions. It is also pointed out that, despite its turn, Indra is not yet perceived as a defense company in its purest form. Nor does the perception of improvisation in the transition from software to military hardware or doubt about whether the State be willing to firmly support the qualitative leap.

The put by war. No doubt, the Spanish case tests the European model of rearme: Can a historically pacifist country lead a robust defense industry without sacrificing its institutional culture? The scribe plan It seems clear: cover all dimensions of the Modern combat. In the sea, Indra supplies Radars and Sónar for the submarines of Navantia, and in the air, leads Spanish participation in the Future Fuat Air System (FCAS), together with Airbus and Dassault.

Plus: in space bought 90% of the Hispasat satellite operator for 725 million euros, and on land, already controls part of armored production, with a view to incorporating armament and sensors. It even has a participation In ITP AeroManufacturer of aeronautical components.

Yes or no. In summary, the concept of “total war” seems to have penetrated the Indra strategywhich is no longer raised as a party supplier, but as a Comprehensive actor of the European war ecosystem.

Notary summarize His vision with a phrase that contains both urgency and ambition: “We would not forgive if we were not able to transform this company into what is called to be.” The question is now if Spain, with its traditional Aversion to militarism and its most scattered political priorities, will accompany that ambition or return to be planted while the rest of Europe aims to rearm to full machine.

Image | BORN

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