Bankinter | Indra (IDR) will maintain and operate the high-speed rail control systems for the Mecca-Medina line in Saudi Arabia for the next five years for €130 million.
With this contract, Indra will continue to provide support for rail traffic management, signalling, telecommunications, ticket sales and reservations, access control, security, etc.
Bankinter analysis team’s view: Positive impact. However, the amount is not high. Assuming that the contract is distributed evenly over the five years, Indra’s revenue would be approximately €26 million/year, compared to our estimate of €359 million for 2025 for the entire Mobility division (contract revenue ~7% of Mobility division revenue and ~0.4% of total group revenue). The news does not change our investment rationale and we maintain our Neutral recommendation (target price €53.2 per share) on the stock.
