• Renfe and Talgo have reached a key agreement on the S106 project under which 15 of the 30 very high-speed trains will be modified, making the entire fleet equipped with variable-gauge technology.
• The reconfiguration of the trains will increase by 29% the maintenance fee paid to Tarvia, the JV by Talgo and Renfe specializing in the development and execution of maintenance services.
• The agreement also establishes a schedule for Talgo’s payment of penalties related to the S106 project, as well as the conditions for train acceptance, enabling the release of contract payments and guarantees.

 Rivabellosa, July 2, 2026. Talgo and Renfe today closed an agreement regarding the S106 project that resolves the differences between the two companies, which had persisted over recent years.

With this agreement, Talgo takes another step forward in the new phase that began on December 17, strengthening the company’s stability, industrial capacity and financial position.

The agreement addresses the penalties associated with delays in the delivery of the Avril S106 trains, the train acceptance process, the updating of payments, the final reconfiguration of the trains including the bogies and Talgo wheelset (‘rodals’) upgrade, and the Tarvia maintenance contract. Tarvia is the joint company formed by Renfe and Talgo and specializes in the development and execution of maintenance services.

Regarding the penalties, the agreement stipulates that payments will not begin until 2032 -well after the maturity of the bank debt recently restructured- and will then be made over the following six years.

In addition to setting out the schedule for Renfe’s acceptance of the trains, the agreement also entails the operator enabling the outstanding payments for the whole Avril fleet and releasing most of the existing guarantees, amounting to approximately €200 million over the next three months.

Furthermore, Renfe will pay Talgo €132 million for upgrading the 15 fixed, European standard track-gauge Avril trains into variable track-gauge units, making the fleet even more versatile and increasing its operational flexibility, thus enabling its use across different routes throughout the Iberian Peninsula.

The agreement also includes improvements to the current fleet maintenance contract. In connection with the replacement of bogies and wheelsets, Renfe will increase maintenance payments by approximately 29%; additionally, Renfe will be responsible for purchasing all the required spare parts, which will then be supplied to Tarvia, the Talgo-Renfe joint venture specializing in maintenance activities.

It should be noted that Talgo closed 2025 with an order backlog of €4.466 billion, which only six months later stands at a record €6.307 billion. The company has also detected commercial opportunities worth €14 billion over the next two years, more than 80% of them in Europe.

Among the highlights of the first half of 2026 are:

• The award by SAR (Saudi Arabia Railways) of a contract for the manufacture of 20 Very High-Speed trains and associated maintenance services, with a total value of €1.332 billion.
• Talgo’s latest contract with Sweden’s transport administration Trafikverket, for the supply and full maintenance of a new fleet of long-distance, cross-border overnight trains worth approximately €756 million.
• The award by UTY (Uzbekistan Railways) of a 10-year maintenance contract for its six Talgo trains, worth approximately €80 million.

 About Talgo

Talgo is the leading company in the design, manufacture and maintenance of high-speed, lightweight trains with an industrial presence, among other countries: in Spain, Germany, Denmark, Kazakhstan, Uzbekistan, Saudi Arabia, Egypt and the United States. The company is recognized globally for its innovation capability, distinctive unique technology, and reliability.

Talgo is Renfe’s main supplier of high and very high-speed trains, and the train supplier in the very high-speed project for the “Haramain” railway line 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 decarbonise their mobility with Talgo 230 long-distance trains, and by the giant Flix to become the first private operator in the European cross-border market.

VK Comunicación
Virginia Knörr Barandiaran
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