- Q12018 net revenues stood at similar level of last two quarters which reflects the current manufacturing stage of the main manufacturing contracts under execution
- Talgo’s backlog stands at €2.7bn in Q1 2018, representing 7.8x of its LTM revenue, showing high potential for future revenues.
- Talgo was awarded in 1Q2018 a project for the conversion of up to 156 Talgo overnight coaches into very-high speed trains, for a total value amounting to 107 €m
Talgo S.A., a leading specialized rolling stock engineering company focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains registered net revenues of 85.2 million euros in the first quarter of 2018, compared to 121 million euros in the same period of 2017. Adjusted net profit stood at €8.0 million while adjusted EBITDA stood at 15.8 million euros. The company registered an operative margin of 18,5%, yet it maintains its 2018 margins outlook for the year at 20%.
Talgo´s net revenues and operating margins depend on the timing and phase of the manufacturing projects under execution and are in line with the results obtained in the previous quarters. Talgo’s Q12018 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, in accordance with the company's expectations. Talgo expects to increase its revenues by the end of the year as industrial activity regarding the manufacturing of the high-speed train Avril begins.
During the first quarter of 2018, Talgo has registered higher financial expenses due to the provision of financial guarantees related to the projects under execution, particularly Meca-Medina, although the company expects financial expenses to decrease as ongoing projects continue to be delivered. In addition to this, it is also worth highlighting that maintenance services continue to provide a solid revenue base and stability in terms of recurrence and cash generation.
Talgo’s backlog stands at €2.7bn in Q1 2018, representing 7.8x of its LTM revenue, showing high potential for future revenues.
New strategic projects
Talgo was awarded in 1Q 2018 a project for the conversion of up to 156 Talgo overnight coaches into very-high speed trains, for a total value amounting to 107 €m. The project includes an option for additional 72 coaches, driving the project total value up to 151 €m.
With regards to ongoing projects, Spain VHS project was awarded in 2017 and includes the manufacturing of 30 VHS trains and its maintenance for 30 years. Talgo is currently finishing its designing and engineering phase and has already started planning its manufacturing phase, starting in Q2 2018.
As for the Mecca-Medina project, Talgo expects to continue to incease its net cash in 2018 as completed units will continue to be delivered. So far, Talgo has fully manufactured 33 units out of the 36 total units. As the project progresses and in line with the needs and expectations of the client, Talgo will continue to deliver the required complete compositions to Saudi Arabia, where there currently are 16 of them.
Talgo is significantly strengthening its commercial activity, currently forseein and working on additional business opportunities of over 9.7bn euros expected to be awarded throughout the period 2018-2020. VHS (41%) and commuter and regional (32%) opportunities lead the pipeline mainly driven by identified tenders in Europe, Asia and MENA region.
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
Phone no.: +34 91 576 52 50
- 31Jul Talgo and the Arab Organization for Industrialization (AOI) sign a framework agreement to improve rolling stock across all rail segments in Egypt
- 24Jul Talgo increases its net profit by 40% and obtains 14 million euros in 1H 2019
- 07Jun Talgo confirms AVRIL as the basis of its HS2 bid
- 30May Uzbekistan acquires two additional Talgo 250 trains for its high-speed fleet
- 14May Talgo increases its net profit by 70% and obtains 7.1 million euros in Q1 2019
Take part in our photography contest “Talgo Trains,” and you could win a range of prizes and visit our factory.
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: firstname.lastname@example.org
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: email@example.com , and we will inform you on the participation conditions.