24 Jul 2019

Talgo increases its net profit by 40% and obtains 14 million euros in 1H 2019

  • Talgo´s strong commercial momentum has increased the order book, including the projects already awarded pending signature, up to 3,500 million euros and exceeds the company's historic maximum levels
  • The Share Buy Back Programme reaches the 39% of the total. Once the programme is executed and shares cancelled, existing shareholders will increase their share on the company by 20%

 

Talgo, a leading specialized rolling stock engineering company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains, has registered a net profit of €14 million, representing a 40% increase compare to the same period of the previous year.

Company´s strong commercial momentum with successful commercial activity resulted on new orders signed in international markets, such as Germany, Egypt, Uzbekistan and the United States amounting €804 million, leading the backlog to record historical levels, driven by a widened geographical commercial presence, which together with product diversification, has enhanced the company commercial approach.

New order drove backlog to €3.2 bn with a stronger presence of manufacturing projects. Including projects already awarded and pending signature, the amount rises to €3.5 bn, at company's historic maximum levels.

Adjusted EBITDA for the first half of 2019 stood at €30 million, €14.6 million in the second quarter, the margin target is maintained at 18%, in line with market consensus, reflecting the successful projects management with strong focus on deliver the highest service and product quality with a strict costs control.

Talgo’s net turnover, in the first half of 2019, reached €167,8 million, a slight growth from the €163.1 million registered in 2018. Talgo is also in a strong financing capacity with over €320 million in cash and €65 million euros in net cash and maintains its Share Buy Back Programme, with €39 million invested by June 2019, 39% of the total. Once the plan is completed, existing shareholders will increase their share on the company by 20%.

New strategic projects

Talgo's new orders in the first half of 2019 amounted to €804 million, bringing the portfolio to historic levels. These new orders mainly come from the project awarded by Deutsche Bahn in February 2019, which includes the manufacturing of 23 long-distance trains in a framework agreement for the manufacturing of up to 100 Talgo trains for an approximate total value amounting €2.3 bn. In addition, Talgo has recently registered additional contracts such as the project awarded by the Egyptian state railway company ENR for the manufacturing of six trains and their maintenance during eight years for a total value of €157 million; the acquisition by the national railway company of Uzbekistan (UTY) of two additional Talgo 250 trains for its high-speed fleet and the contract to rebuild Southern California Regional Rail Authority Rail Cars operated by Metrolink.

These new contracts are the result of the company's efforts to boost its commercial activity in order to reinforce its order intake with high-quality projects that guarantee the sustainability of the business model.

In addition, Talgo continue with the successful execution of all the maintenance contracts in seven countries, highlighting the good results obtained so far in the high-speed Mecca-Medina corridor, started on October 2018. At the moment, Talgo trains have completed more than 1.000 journeys, carrying above 400,000 passengers.

The company has continued working on the identification and tendering process of additional opportunities. In this sense, Talgo is currently working on over 20 opportunities expected to be awarded throughout the next 24 months with a total value amounting €7.3 billion. The tenders identified mainly cover the Very High-Speed segment (such as HS2 project in the United Kingdom) and suburban trains (Renfe has approved the bidding of different regional and suburban train packages, as well as high-speed locomotives, in which Talgo intends to participate).

Second half of 2019 outlook

Talgo has confirmed its 2019 outlook. Ahead of the next fiscal year, the company maintains its expectations in strong double-digit revenue growth, reflecting manufacturing ramp-up of ongoing projects, mainly driven by the Very High-Speed project Avril for Renfe. In addition, Talgo expects a successful performance of the maintenance business in all projects. With regards to profitability, the company expects to maintain its adjusted EBITDA margin target at 18% for FY2019.
Additionally, Talgo is working to expand its commercial presence geographically, which, together with the diversification of its product portfolio, is expected to contribute the achievement of new projects in 2019 and in the coming years. In addition to the active pipeline, the company actively monitors over 45 longer term opportunities with an expected value amounting c. €11 bn.

 

For further information please contact:
Ana Pereira
Email: apereira@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.

 

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Photography contest “Talgo Trains”

 

II EDITION 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

PRIZES

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

Rules of the contest

INSTRUCTIONS

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.

PARTICIPANTS

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.