27 Feb 2018

Talgo beats record of awarded contracts in 2017

Talgo S.A., a leading specialized rolling stock engineering company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains, increased its order backlog to €2.8bn in 2017, representing more than 7x full-year revenue. In 2017, Talgo signed new orders amounting to €700 million, its highest since 2011.

In this sense, in 2017 Talgo signed contracts such as the very high speed Renfe contract which involves the design and manufacture of 30 Talgo Avril trains, thus ensuring its industrial activity for the near future. This opportunity is also an important reference for the commercialization of the Talgo Avril very high-speed train in other countries. Other relevant milestones in 2017 include the expansion of the project for the remodelling of 36 additional rail vehicles of the Los Angeles Metro (United States), through which Talgo will boost its presence in the US market; the renewal and newly signed maintenance contracts in Spain and Uzbekistan, respectively, and the company's pre-selection for the HS2 high-speed competition in the United Kingdom, which will connect the British cities of London and Birmingham in 2026.

FY2017 Results

Talgo registered a net turnover of €384,4 million in 2017, compared to €579.8 million euros in 2016. This decline is a consequence of the natural execution cycle of the main manufacturing projects and was offset by the positive evolution of its operating margins, which stood at 23% of adjusted Ebitda in 2017, above market forecasts. Adjusted EBITDA stood at €87.6 million in 2017 while adjusted net profit reached €42.8 million.

Talgo´s net turnover and operating margins depend on the size, timing and phase of the manufacturing projects under execution. Talgo’s FY2017 results showcase the current transition period between the completion of one of the most relevant projects, the Saudi Arabian Mecca-Medina project, and the beginning of the Talgo Avril very high-speed train project, which currently stands in its initial design and engineering phase and is expected to begin its manufacturing phase in 2018.

Strong cash flow generation registered in 2017 as expected, reaching 188 million euros FCF, because of successful projects management and delivery. As a result of the high cash generation, the net financial debt fell to 30 million euros, which is 0.3 times adjusted Ebitda.

2018 Outlook

For 2018, Talgo expects to continue to recover its working capital as a result of the progress in the projects in which the company is currently immersed subsequently reducing the Net financial Debt of the Company. The company expects to maintain its operating margin target at approximately 20% in 2018.

In February 2018 Talgo was awarded a €107 million contract for the conversion of 156 coaches (equivalent of 13 trains) of the Series 7 units into very high-speed trains capable of travelling at 330km/h. The contract includes an option for the conversion of 72 additional coaches (that is, six additional trains), depending on the final requirements of Renfe. The full contract value should the option be executed amounts to €151 million for the conversion of 228 coaches (€107 million for the first 156 coaches).

Talgo now foresees additional business opportunities of over €8,500 million in Europe, Southeast Asia and Middle East and expects to increase its commercial activity in order to continue to boost its diversification strategy along the commuter and regional rail vehicles segments. Current opportunities include very high-speed and suburban tenders, as well as passenger coach manufacturing and maintenance contracts, where Talgo’s unique and distinct technology and experience give the company a clear competitive advantage.

Notes to editors
TALGO S.A. is a leading specialized rolling stock engineering company mainly focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains with industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and United States. The Company is renowned worldwide for its innovation capacity, its unique technology and reliability. TALGO is the rolling stock provider for the Haramain high speed railway line between La Mecca and Medina in Saudi Arabia.


For further information:
Aída Prados
Email: aprados@estudiodecomunicacion.com
Phone no.: +34 91 576 52 50

Photography Contest


Take part in our photography contest “Talgo Trains,” and you could win a range of prizes and visit our factory.



Photography contest “Talgo Trains”



Once again, Talgo announces the opening of the annual “Talgo trains” photograph contest. This year´s novelty is that you can send us both: photos and videos!

Participants can share their photograhs/videos of Talgo trains operating around the world by filling in the registration form below.

Participate and win prizes up to 1000€ and a visit to our factory!

The deadline for submitting your photos/videos is May, 31st, 2017

For any questions related to the contest, please, email us at: concurso@talgo.com


Prize: 1000€ | Video contest: 500€ | Another two prizes of 250€ each will be distributed among both photograph and video categories.

Rules of the contest


Fill in your personal information in this application form. Upon completion you will be provided access to the photos/videos uploading area. To log in enter your name, surname and email address and send us as may photos/videos as you want.


From January 24th, 2016 at 00.00 to May 31st, 2017 at 23.59 (Spanish time) any person can participate in the contest by sending us photographs/videos of Talgo trains.

If you are younger than 18 years old, contact us at: concurso@talgo.com , and we will inform you on the participation conditions.