14 Nov 2019

Talgo increases its net profit by 75% and obtains 24.9€m in 9M 2019

  • Net turnover reached 275.5 €m in 9M2019 representing a 16.3% increase compared to 2018.
  • Talgo’s strong manufacturing backlog alongside with the unconditional support of the recurrent maintenance and services projects, will draw the new growth cycle headed to reach highest historical top-line levels.

 

Talgo SA, a leading specialized rolling stock engineering company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains, registered a net turnover of 275.5 €m in the first 9 months of the year, up from the 236.8-€m turnover reached in the same period of the previous year. This 16.3% increase reflects the beginning of a new business growth cycle, supported by recent awards that have strengthened the backlog with high quality projects reaching over 3.1 €bn in orders.

Adjusted EBITDA for the 9M2019 reached 50.5 €m, representing a 5% growth compared to the 48.1 €m of 9M2018. Net profit stood at 24.9 €m, which represents an increase of 75% compared to the 14.3 €m reached in the same period of the previous year. This increase is mainly due to less D&A and lower financial costs registered.

On a quarterly basis, revenues amounted 107.7 €m in the period, which represents the highest level since 1Q2017, thus confirming the growth guidance forecasted in the previous quarters. Talgo’s strong and growing manufacturing backlog alongside with the unconditional support of the recurrent maintenance and services projects, will draw the new growth cycle headed to reach highest historical top-line levels.

Commercial activity focused on high quality projects

During the first quarter of 2019, Talgo’s newly awarded contracts amounted 827 €m, mainly derived from the project awarded by Deutsche Bahn in February 2019, which includes the manufacturing of 23 long-distance trains for a total value of 550 €m. This project is comprised within the framework agreement signed for the manufacturing of up to 100 trains, with an expected value amounting 2 €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 158 €m; the manufacturing of 2 complete trains and additional coaches and spare parts, for a total value of 52 €m; 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 70 $m.

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 working on over 25 commercial opportunities expected to be awarded in the short and medium term, for an approximate value of 8.5 €bn. The commercial opportunities identified mainly come from European countries and America. Of the total identified opportunities, 49% of the volume comes from the Very High-Speed segment (such as HS2 project in the United Kingdom, and opportunities in the liberalization of rail passenger transportation in Spain) well as in the Commuter segment (where Spain states as the strongest source of opportunities in 2020), in addition to remodelling projects in the United States and Latin America.

2019 outlook

For FY2019, 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 confirms its adjusted EBITDA margin target at 18% for FY2019.

During 2019, Talgo has submitted a number offers keeping its characteristic discipline in terms of selectivity that follows the strategy to sustainably grow while consolidating the company international positioning in VHS and long distance while entering in new segments. Furthermore, Talgo maintains its commitment to continue its Share Buy-Back programme execution in 2019 with 53 €m (9.6 million shares) invested by October 2019.

 

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

Press 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.

 

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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.