null Talgo completes a record year with revenues of €652 m and an order backlog of more than €4.2 bn


28 Feb 2024

Talgo completes a record year with revenues of €652 m and an order backlog of more than €4.2 bn

  • Talgo registered strong commercial momentum with record orders for contracts worth more than €2.1 bn
  • The order backlog stands at record highs, with more than €4.2 bn in contracts providing visibility of industrial activity though to 2030
  • EBITDA reached €76.5 million euros, up by 55% with respect to the previous year, driven by the increase in industrial activity, and with a margin of 11.7%
  • Net profit rose to €12.2 m, despite higher interest rates and extraordinary costs
  • With regard to shareholder remuneration, Talgo successfully completed the Scrip Dividend in 2023 as well as the share buyback program in January of this year

Talgo S.A., a leading company in the design, manufacture, and maintenance of high-speed light trains, registered a revenue of €652 m in 2023, a 39% increase compared to the €469.1 m achieved in the previous year. Revenues mainly reflect the increase in industrial activity in line with the manufacturing projects schedules.

The Company registered an EBITDA of €76.5 m in 2023, up by 55% compared to the €49.3 m obtained in the previous year, motivated by the increase in industrial activity and including extraordinary figures due to the extensions of the manufacturing contracts with Germany’s DB and Denmark’s DSB. Net profit amounted to €12.2 m, eight times higher than in the previous year. Even so, it was negatively impacted by rising interest rates, which resulted in an increase in the Group’s financial expenses. 

At the close of 2023, Working Capital (WC) stood at €384.9 m, reflecting the current cycle of the manufacturing phases, which also resulted in an increase in net financial debt to €241 m. Talgo has a solid financial profile with diversified sources and more than €200 m in cash and available credit lines. In addition, Talgo registered in February of this year a Promissory Note Program in the Spanish Fixed Income Market for a maximum amount of €150 m. 

Capex investments amounted to €26.4 m, in line with the initial forecasts for this period announced at the beginning of the year. Of this amount, 74% corresponds to R&D activities. 

In 2023, Talgo maintained its commitment to shareholder remuneration through a €12 m Scrip Dividend and share buyback program, completed in January 2024. 83% of the Company’s shareholders chose to collect the flexible dividend in shares, rather than cash, consolidating their position in Talgo’s share capital, as a clear confidence of shareholder support and confidence in the Company’s future.

Order backlog at record high

Talgo ended the year with a solid order backlog of €4,223 m, which represents an increase of 54% compared to the previous year. In addition, the Company achieved historical highs in new orders worth more than €2.1 bn. This strong commercial momentum has driven the increase in manufacturing activity, led by projects in Germany, which includes the design and manufacture of 79 Intercity Talgo 230 trains for Deutsche Bahn; Denmark, which comprises the design and manufacture of 16 Intercity Talgo 230 trains for DSB; and Spain, whose contract includes the manufacture of 23 very high-speed tractor heads and the maintenance of 13 trains, with option for 12 additional units for Renfe. 

Most of the new orders are extensions of existing contracts with Germany’s DB and Denmark’s DSB, as well as the extension of Renfe’s maintenance contract for the Talgo 250 high-speed fleet. These new orders minimize execution risks, while contributing to the stability in manufacturing schedules and leaving room to implement industrial efficiencies.  

In terms of maintenance activities, Talgo holds a solid base of contract in seven countries that provide long-term revenues visibility and activity with a consolidated and steady growing maintenance backlog.

2024 Outlook

Talgo confirms its prospects for 2024 in terms of revenues, supported by the execution of projects in the pipeline. 

Regarding profitability, Talgo forecasts an EBITDA of 11.5% for the period.
Likewise, in 2024, Talgo establishes a Capex investment forecast of up to €30 m. In relation to Net Financial Debt, the Company expects to maintain it at 3.0x EBITDA, in line with the expected cash requirement for the projects.

Talgo is currently working on commercial opportunities in a large number of markets, with a value amounting to €5 bn for the period 2024-2026. Moreover, Talgo is closely monitoring the possibility for projects worth more than €20 bn. In this regard, Talgo’s state-of-the-art technology and know-how position the Company as an international benchmark in the decarbonization of passenger transportation, while consolidating its position as a highly competitive solution for MENA countries. Talgo’s long-distance train solutions also set a point of reference for their contribution in reducing carbon emissions and energy efficiency compared to other transport alternatives.  

About Talgo 

Talgo S.A. is a leading company in the design, manufacture and maintenance of high-speed light trains with a manufacturing presence, among other countries: in Spain, Germany, Kazakhstan, Uzbekistan, Saudi Arabia, Egypt and the United States. The Company is recognized worldwide for its innovative capabilities, unique and distinctive technology and reliability. Talgo is Renfe’s main supplier of high-speed and ultra high-speed trains and the supplier of trains in the “Haramain” high-speed railway line project between Mecca and Medina in Saudi Arabia. Talgo is also the manufacturer chosen by the German operator Deutsche Bahn and the Danish operator DSB to decarbonize its network with the Talgo 230 long-distance trains. 

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