Banco Sabadell | The Supreme Court has admitted an appeal filed by Santa Bárbara Sistemas requesting the precautionary suspension of €3 billion in 0% loans granted by the government in October 2025 to the joint venture formed by IDR and Escribano Mechanical & Engineering (EM&E). These loans would be used to pre-finance the two main artillery programmes included in the government’s military modernisation strategy: wheeled howitzers (€1.181 billion) and tracked howitzers (€1.821 billion).
Assessment: This is negative news that adds uncertainty. Pending whether or not a real suspension materialises, we believe that it should not affect the company’s current solvency (it is very likely that the loans have not even been disbursed), but it will affect future results to the extent that the aforementioned projects could not be undertaken. Indra has been awarded a total of €8 billion in government loans. Cancelling these €3 billion would therefore have a relatively significant impact (representing 37.5% of the total).
