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Talgo increases its revenue by 31.4% and registers €166.5 million up to March

7 de May de 2024

  • Increased manufacturing activity and recurring revenues from maintenance services boosted the company’s revenues in the first quarter of 2024
  • EBITDA reached €20.1 m, with a 12% margin
  • Talgo confirms its solid commercial momentum for 2024 with an order backlog of more than €4 bn and significant commercial opportunities in the coming years

Talgo S.A., leading company in the design, manufacture, and maintenance of high-speed light trains, registered a revenue of €166.5 m through March, a 31.4% increase over the figure recorded in the same period of the previous year. This revenue growth is mainly due to the increase in the company’s manufacturing activity, with projects for the German railway operator, DB, and the Danish railway operator, DSB, as well as the very high-speed powerheads project for Renfe. This was further supported by an increase in recurring revenues from maintenance services.

The company registered an EBITDA of €20.1 m in the first quarter of 2024, with a 12% margin growth. This figure endorses the company’s industrial action plan, aimed to  implemented to mitigate supply chain disruptions and the impact of inflation through the indexation clauses included in manufacturing and maintenance projects, thus. These measures help to reducinge project execution risks, while also reducing the impact of materials and commodity volatility.

Net profit stood at €10.4 m in the first three months of 2024, which represents a significant increase over the €2.4 m registered in the same period of the previous year.

During the first quarter of 2024, the company’s industrial activity has reflected the expected growth, with an increase in the manufacturing pace of ongoing projects. Talgo expects this trend to continue throughout the year.

Backlog and commercial visibility

Talgo has an order backlog of more than €4 bn, with most relevant new manufacturing orders being contract extensions, such as DB and DSB, which include indexation clauses to mitigate potential inflation and execution risks. The order backlog is also supported by recurring maintenance services activity, contributing to business growth with stable long-term contracts.

On the commercial side, the company has a global presence with a strong focus in Europe and MENA markets. Talgo also stands out for its experience in the long-distance segment, driven by the latest technological advances such as the increased energy efficiency of trains and greater accessibility, all with the highest standards of quality and safety.

The order backlog, at record highs, provides great visibility on the company’s revenues and future industrial activity. Moreover, it positions Talgo’s cutting-edge technology and know-how as an international benchmark in the decarbonization of passenger transport, especially in the European market.

2024 Outlook

The solid business and the strong project execution performance confirm the outlook set for 2024, which includes a high level of activity and, therefore, a high level of revenue recognitions during this period, with stable EBITDA margins of c. 11.5%.

In 2024, Talgo also establishes a Capex investment forecast of c. €30 m and a Net Financial Debt stable vs. 2023 at a leverage of c. 3.0x EBITDA, that reflectings the expected cash requirements of ongoing projects.of stable projects as compared to 2023, at c. 3.0x EBITDA.

About Talgo

Talgo S.A. is a leading company in the design, manufacture and maintenance of high-speed light trains with a manufacturing presence, among other countries: in Spain, Germany, Kazakhstan, Uzbekistan, Saudi Arabia, Egypt and the United States. The Company is recognized worldwide for its innovative capabilities, unique and distinctive technology and reliability. Talgo is Renfe’s main supplier of high-speed and ultra high-speed trains and the supplier of trains in the “Haramain” high-speed railway line project between Mecca and Medina in Saudi Arabia. Talgo is also the manufacturer chosen by the German operator Deutsche Bahn and the Danish operator DSB to decarbonize its network with the Talgo 230 long-distance trains.

For further information, please contact:

Press contact:
Berta de Arístegui and Íñigo Palacio – Estudio de Comunicación
Email: talgo@estudiodecomunicacion.com
Phone no.: +34 91 576 52 50