Indra closed this Tuesday's session with a drop of 4.22%, to 54.40 euros per share, after it became known last night that the European FCAS (Future Air Combat System) program, intended to develop a sixth-generation fighter jet between Spain, Germany, and France, has stalled after years of talks due to disagreements among the partners.
Following this setback, Indra's market capitalization is reduced to 9,628 million euros, representing a decrease of 424 million compared to Monday's closing. Even so, the technology company's shares are up 12.28% year-to-date and have risen 54.74% in the last twelve months.
From Banco Sabadell, they emphasize that the effect "should be limited" for the company, "since only the fighter jet part of the entire project would have been canceled." Currently, revenues linked to FCAS account for around 3% of Indra's total turnover.
Javier Cabrera, an analyst at XTB, warns that, "If each member state opts for protectionism and prioritizes its own local companies, Indra will find it much more difficult to expand internationally and reduce its dependence on contracts from the Spanish Government."
In the same vein, Bankinter experts point out that the possible exclusion or change of role for Germany and Spain in the autonomous development of a complete sixth-generation system "raises relevant uncertainties about their role in future advanced air defense programs."
"The development of these types of capabilities is strategic for Europe, as it would reduce dependence on the American F-35 and close the technological gap with the United States," add the entity's analysts.
According to sources from the German Executive, Chancellor Friedrich Merz and French President Emmanuel Macron have concluded that the French group Dassault Aviation and the European consortium Airbus will not be able to agree on who should lead the program.
Merz has recommended to the French leader that he abandon this defense project, considered the most ambitious to date and launched in July 2017 by then-German Chancellor Angela Merkel and Macron.
Despite this, the chancellor has shown himself to be in favor of continuing with the development of a combat cloud associated with these capabilities.