11 May 2017

TALGO obtains net profit of 15.6 millon euros with 23.1% margins

Talgo S.A., Spanish leader in the design, manufacturing and maintenance of high-speed trains, registered net revenue of 121 million euros in the first quarter of 2017, as compared to 150.1 million euros obtained in the same period of the previous year. This decrease was offset by the increase in operating margins up to 23.1% as a result of projects profitability review and the mix of projects under execution. Adjusted EBITDA corresponding to the first quarter of 2017 reached 28 million euros. Net profit amounted to 15.6 million euros.

Talgo’s net revenue and operating margins depend on the execution phases of manufacturing and maintenance projects. Talgo’s Q1 2017 results reflect the continuity of the manufacturing activity, particularly of its international manufacturing projects in Saudi Arabia and Kazakhstan, supported by the solid and recurring maintenance activity and the commercialization of maintenance equipment.

In Saudi Arabia, the company is making good progress in the manufacturing and testing of the 36 trains for the Mecca-Medina's high speed project. In Kazakhstan the company is efficiently developing another of its major projects, having started manufacturing a second order of 603 passenger coaches after Talgo adapted manufacturing schedules to the client’s requirements.

On May 9th, Talgo held its Annual General Meeting during which the Board and Management team received the support of the majority of the company’s shareholders and suggested proposals were passed with a prevailing majority. In the AGM, Talgo’s shareholders approved the distribution of a 10 million euros pay-out through a scrip dividend plan.

Strategic opportunities

Ahead of the next 24 to 30 months, Talgo will intensify its commercial activity in order to continue to reinforce its order book with quality projects that guarantee the sustainability of its business model.

The company has identified commercial opportunities with a total value of €8.5bn for the period 2017-2020. The potential contracts will mainly be awarded in Europe, Asia and the MENA region (Middle East and Northern Africa). The identified pipeline include high-speed rail projects – the market segment with higher growth potential in the next years – along with other manufacturing and maintenance projects for long-distance coaches, market segments in which Talgo’s experience and unique technology represent clear competitive advantages. During the first quarter of the year, Talgo has bid for manufacturing projects in Spain and the MENA region with a total value of approximately 480 million euros.

The company has also identified a number of opportunities in the regional and commuter train segment where Talgo expects to penetrate in the short-medium term, and for which it has developed its regional-commuter train Talgo EMU. This new development is a completely flexible and adaptable technological platform with a maximum commercial speed of 160 kmph and equipped with Talgo’s unique technology. It is the only train of its segment to offer the greatest capacity and the lowest energy consumption.

New ongoing projects
Regarding its order intake, Talgo has started to overhaul Los Angeles Red Line rolling stock and to upgrade relevant technologies onboard its rail vehicle fleet, having been awarded the contract in September 2016. With this contract Talgo has set foot in a new market segment which is considered to become another growth lever for the Spanish company.

Ahead of the next months, the company will prepare for the start of the manufacturing of the new very-high-speed train Avril in the first quarter of 2018. Last December, Spanish railway operator Renfe awarded Talgo a contract to supply 15 very high-speed trains and their maintenance during 30 years, with an option to supply a second block of 15 additional trains. The company will provide Renfe with its most advanced very high-speed train Talgo Avril which is a faster, lighter, more efficient and sustainable train.

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.