14 May 2019

Talgo increases its net profit by 70% and obtains 7.1 million euros in Q1 2019

Talgo, a leading specialized rolling stock engineering company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains, has registered net revenues of €87.1 million in the first quarter of 2019. This 2.2% increase is in line with the current stage of the company, which is executing the first and last phases of ongoing projects and progressively incorporating new projects into its order intake.

Adjusted EBITDA for the first quarter of 2019 stood at €15.9 million, similar to the €15.8 million registered in 2018. Q1 2019 net profit stood at €7.1 million, representing a 70% increase compare to the same period of the previous year. This increase is a result of lower depreciation and amortization costs, as well as lower financial costs, following the recent refinancing of the debt aimed at reducing interest rates and increasing the maturities of the Company's long-term debt.

Talgo’s net turnover and operating margins depend on the execution phases of manufacturing and maintenance projects. Talgo’s results for the first quarter of 2019 showcase the good progress of its national manufacturing projects, such as Renfe's Talgo Avril (which includes the manufacturing of 30 trains and its maintenance for 30 years) and the conversion of Renfe’s series 7 hotel trains into Very High Speed compositions; as well as the progress of its international projects such as the manufacturing of up to 23 long-distance trains for the European operator Deutsche Bahn, which is in an early engineering phase, and the remodelling of the Los Angeles subway cars in the United States. In addition, the completion of international projects such as the Haramain project in Saudi Arabia and a solid and recurrent maintenance activity, as well as the commercialization of maintenance equipment, have contributed to boosting turnover in the quarter.

New projects and strategic opportunities

During the first quarter of 2019, Talgo’s new awarded contracts amounted to €550 million, mainly from the project awarded by Deutsche Bahn in February 2019, which includes the manufacturing of 23 long-distance trains. 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 €158 million; and also the project awarded by the Southern California Regional Rail Authority (SCRRA) for the overhaul and modernization of up to 121 railway vehicles for $138.9 million, in a joint venture with the French company SYSTRA.

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.

Talgo is currently participating in more than 20 commercial opportunities that it hopes will be awarded in the short and medium term, for an approximate value of €6.7 bn. The tenders identified mainly cover the Very High-Speed segment (such as HS2 project in the United Kingdom), as well as local and regional markets such as Europe and the MENA region (Middle East and North Africa). Of these, there is particularly outstanding focus on ongoing tenders in Spain.

2019 outlook

Talgo has updated its 2019 outlook. Ahead of the next fiscal year, the company expects 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.

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. €12 bn.

About Talgo:

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 Mecca and Medina in Saudi Arabia.

For further information please contact:

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.