null Talgo registers historical highs of 293 million euros of revenues until June driven by increased industrial activity

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27 Jul 2021

Talgo registers historical highs of 293 million euros of revenues until June driven by increased industrial activity

  • Revenues increased by 35% in the first half of 2021 compared to the previous period due to greater industrial activity and the recovery of maintenance activity
  • The net profit that reached 10.2 million euros and an Adjusted EBITDA that amounted to 30.5 million euros in the first half of 2021 confirm the return of Talgo to stable growth once the impact of Covid-19 has been overcome
  • Significant improvement of the company financial profile with the debt refinancing to extend the average maturity to 3.7 years and reduce the cost of the debt to 1.0%
  • The Company has implemented a working capital improvement plan to increase cash generation and an action plan to reduce general expenses by 15%
  • Expected approval of a new shareholders remuneration program in the first half of 2022
  • The company has a high-quality and well-diversified backlog of 3,131 million euros, which ensures industrial activity for the coming years and is in an optimal financial situation to execute the projects and to continue to grow


Talgo S.A., a leading company in the design, manufacture, and maintenance of high-speed light trains, registered a record revenue of 293.3 million euros in the first half of 2021, up by 35% compared to the 216.6 million euros registered in the same period of the previous year. This revenues increase was driven by a strong manufacturing activity, led by the Spanish High-Speed project (Renfe Avril). In quarterly terms, Talgo obtained revenues of 146.2 million euros, in line with the 147.1 million euros obtained in the previous quarter.

Meanwhile, net profit reached 10.2 million euros in the first half of 2021 and confirms the return of Talgo to gradual stabilization and recovery after the impact generated by Covid-19.

The company registered an adjusted EBITDA of 30.5 million euros in the first half of 2021, compared to the 14.7 million euros from the same period in the previous year. This increase in EBITDA demonstrates Talgo's ability to return to profitability, with the margin growing for the fourth consecutive quarter to reach an operating margin of 11.7% in the second quarter of 2021, demonstrating the ability of its operations to adapt to adverse market conditions.

In addition, it should be noted that Talgo has a solid balance sheet with a high financial capacity to successfully execute the backlog’s projects and continue to grow. As of June 2021, the Working Capital amounted to 172.7 million euros, maintaining a stable weighting on revenues at 31%. Besides, Talgo is implementing a plan to reduce the Working Capital intensity on the business and maximize cash generation.

Furthermore, Talgo has refinanced its long-term loans, increasing the average maturity to 3.7 years and reducing the average cost to 1.0%, which implies significant savings in future financial expenses and greater availability to finance current and future projects.

Solid backlog and commercial strategy
Talgo has a high-quality and well-diversified backlog of 3.131 million euros, which amounts to 3.335 million euros if the orders obtained throughout the semester, and which are pending to be signed are included. More than 800 million euros from the orders come from manufacturing scopes, a factor that guarantees an intense industrial activity and long-term revenues for the 2021-2024 period.

The high quality of the backlog is the result of a selective commercial strategy aimed at offering the highest added value in terms of operators’ technological and economic efficiency. The diversification and international commitment in which 70% of orders are international projects, complete the pillars of a long-term sustainable growth strategy.

The volume of new orders in the first semester of 2021 amounted to 238 million euros, including, among others, the maintenance of 15 additional Spanish high-speed trains, which are currently being manufactured, and the impact of prices update in the high-speed train maintenance contract in Saudi Arabia, before its start of operations in April 2021. Likewise, Talgo awarded in Spain the manufacturing of up to 40 new tractor heads (locomotives) of variable width and a commercial speed of 330 km/h, for a maximum amount of 281.5 million euros, with a firm order for 26 tractor heads for 195.5 million euros. This order also includes the maintenance of 13 complete trains.

About the commercial activity, the company is currently working on commercial opportunities in the short and medium term, for an approximate value of 6.500 million euros, 72% of which are in Europe.
The company continues to focus its commercial activity on its strategic segments, i.e. long distance and high speed, where it is already an international benchmark, while using its Talgo Vittal platform to position itself in the commuter/medium distance segment, with the Vittal-One variant through, which it is developing its green hydrogen technology as the most environmentally friendly solution to contribute to the process of decarbonization of transport in the coming years.

2021 Outlook
The first quarter results and the current outlook for project performance confirm and improve the objectives set for 2021.

The company expects to execute up to 35%-37% of its order book in the period 2021-2022. Talgo maintains a target of achieving an average book-to-bill ratio of 1.0 -1.2x for the period 2020-2021.
In terms of profitability, the company improves its adjusted EBITDA forecast range, setting it at 11%-12% for 2021, derived from a progressive recovery in profitability, albeit subject to mobility restrictions and their impact on the maintenance activity.

Also in 2021, Talgo expects an investment in Capex for 2021 of up to 25 million euros, prioritizing R&D&I activities (such as, for example, those related to hydrogen technology).
In the second half of 2021, the company plans to approve is 2022-2026 strategic plan and regarding shareholder remuneration, Talgo expects to start a new remuneration program in the first semester of the year.


Note to editors:
Talgo S.A., is the leading company in the design, manufacture and maintenance of high-speed light trains with industrial presence in nine countries: Spain, Germany, Kazakhstan, Uzbekistan, Denmark, Egypt, Russia, Saudi Arabia and the United States. The Company is recognized worldwide for its innovative capacity, unique and distinctive technology and reliability. Talgo is the train supplier for the "Haramain" high-speed rail project between Mecca and Medina in Saudi Arabia.

For further information
Press contact:
Ana Pereira - Estudio de Comunicación
Phone: +34 91 576 52 50