28 Feb 2019

Talgo registers a net cash position of 106 €m and €384 million in cash by the end of 2018

  • FY2018 net revenues stood at €324.4 million; adjusted Ebitda stood at €65.5 million
  • Solid and stable backlog stood at €2.7bn in 2018. As of February 2019, Talgo’s backlog increased to €3.16bn
  • Strong cash flow generation in the period 2017-2018 reached a total of €341 million of FCF, mainly driven by Mecca-Medina expected collections
  • Talgo has executed c. 15% of its €100 million share buy-back program and will continue to execute throughout 2019, fulfilling its commitment with shareholders

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 €324.4 million in 2018, compared to €384.4 million in 2017. This relative decrease is a consequence of the natural execution cycle of the main manufacturing projects and was offset by the positive evolution of its operating margins. In this sense, adjusted Ebitda stood at €65.5 million in 2018, achieving 20% adjusted Ebitda margin for FY2018. Adjusted net profit reached €27 million.

Talgo´s net revenues and operating margins depend on the timing and phase of the manufacturing projects under execution. Talgo’s FY2018 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 for RENFE, which is currently in its initial manufacturing phase. In this regard, Talgo expects the net revenue figure to recover in 2019, and to register significant growth.

Talgo has registered strong cash flow generation for the second year in a row, reaching €153 million of Free Cash Flow (FCF) in 2018, resulting in a cumulative €341 million of FCF in the period 2017-2018, which represents a 223% of Ebitda cash conversion. As a result of successful cash flow generation, Talgo managed to reduce its NFD during the year to stand at a net cash position of €106 million by FY2018.

By FY2018, Talgo has committed on the guidance provided at the beginning of last year.

Solid and stable backlog

Talgo registered a solid and stable order backlog, which stood at €2.7bn by FY2018. As of February 2019, Talgo’s backlog increased to €3.16bn, following the recently awarded project by the German operator Deutsche Bahn for the manufacturing of 23 trains for €550 million.

In this regard, the order intake registered in 2018 was mainly marked by the project awarded in February 2018 by the Spanish operator RENFE for the conversion of night Talgo coaches into very high-speed trains. The scope of the contract comprises the conversion of 156 coaches (equivalent to 13 trains) into very high-speed trains for a total amount of €107 million, with the option for 72 additional coaches for €44 million. With this new fleet, together with the 30 very high-speed trains already under manufacturing process, Talgo will increase its VHS installed base in Spain from 90 to 133 trains (+47%) thus consolidating its leadership in the VHS market.

Likewise, Talgo has increased in 2018 its maintenance scope in the Mecca-Medina project within the context of the OPS1 commercial operation that is being carried out from October 2018 to September 2019 with 8 to 12 trains, with exceptional results in their performance.

Guidance 2019

With regards to shareholder remuneration, as of February 2019 Talgo has executed approximately 15% of its share buy-back program for €100 million and has confirmed its commitment to execute it throughout 2019.

In 2019, Talgo expects significant revenue growth driven by the progress of the projects in which it is currently immersed, mainly Spain very high-speed project. In terms of profitability, the company expects to maintain the Ebitda margin target at 18% for FY 2019, reflecting a new mix of low risk and high-quality projects.
With regards to future contracts, Talgo has submitted bids during the year 2018 for an approximate value of around €2bn, some of which have already been successfully resolved, as has been the case of the Deutsche Bahn project in Germany.

In addition, Talgo is working to expand its commercial presence geographically, which along with the diversification of its product portfolio, is expected to contribute to receiving new projects in 2019 and in the next years. Talgo is currently working on several tenders for a total value of €7.4bn that will be awarded over the next 24 months.

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.

Press contact:
Aída Prados
+34 915765250

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.