• The EBITDA recorded without provision for the Renfe penalty was 70 million euros, with a margin of 10.5%
• The order book stands at 4,173 million euros, which is a clear demonstration of the confidence of customers in Talgo and its capabilities
• The provision amounts to 116 million euros. Talgo defends the strength of the technical and legal arguments against the penalisation of Renfe
• The company defends that the delays were caused by causes not attributable to Talgo
• Talgo will seek to protect its interests and those of the shareholders by reaching a solution with Renfe, and reserves the right to go to court

Talgo S.A., a leading company in the design, manufacture and maintenance of high-speed, lightweight rail vehicles, recorded a turnover of 669.2 million euros in 2024, an all-time high. This represents an increase of 17 million euros (+2.5%) compared with the 652 million euros recorded in 2023. Revenue mainly reflects increased industrial activity in line with production project schedules.

The company also recorded an Ebitda of 70 million euros in 2024, not counting Renfe’s penalty provision, with a margin of 10.5%. Net profit was €8.8 million, excluding this provision. Investments in Capex amounted to €48 million, including investments in R+D, to which €35 million were allocated.

Renfe penalty provision

As detailed in Talgo’s Annual Accounts for 2024, a substantial change has been considered during the 2024 financial year: the provision for the execution of the penalty for delays in the supply of 30 AVRIL high-speed trains, which was in the phase of allegations and justifications since July 2022.

This substantial change has led to an increase in risk in the probability of facing the penalty, in the opinion of the Directors and their legal advisors; in the same sense, Talgo has received accounting assessment from independent third parties of recognized prestige that ratify this change from the financial information point of view. Consequently, Talgo has considered appropriate to set a provision of €116 million under the heading “Other operating expenses”.

Without prejudice to this, the company maintains from the beginning and to this day that the delays have been caused by causes not attributable to Talgo and, as has always done, will try to reach a solution with Renfe that protects its interests and those of its shareholders, while reserving its right to go to the Courts of Justice, if necessary.

Talgo also recalls that the complexity of the projects, the long duration of their implementation and the influence of exogenous factors that affect delivery times are common in the railway sector, and therefore it is a widespread practice that circumstances concur allowing for the adjustment of delivery schedules without liability for the contractor.

Strong order book

Talgo has closed 2024 with a solid order book of 4,173 million euros, similar to that of the previous year. The order book is well balanced between manufacturing, which ensures strong revenue growth with an execution schedule spanning 2-5 years, and maintenance, which generates cash and recurring revenue. More than 80% of the portfolio also corresponds to international projects, which reflects Talgo’s internationalization process.

Maintenance activities, which account for approximately half of the portfolio, drive stability and provide reliable cash flow, while expanding the installed base with new deliveries. Likewise, maintenance equipment supply projects are a profitable strategic line of business, which offers commercial synergies that facilitate access to new customers.

This strong commercial momentum has supported the increase in manufacturing activity, led by the projects in Germany, comprising the design and manufacture of 79 Intercity Talgo 230 trains for Deutsche Bahn; Denmark, which includes the design and manufacture of 16 Intercity Talgo 230 trains for DSB, and the design and manufacture of 7 trains for Egypt. And in Spain, contracts that include the manufacture of the 26 very high-speed tractor units and the maintenance of 13 trains of the 107 series, with the option of 12 additional units for Renfe.

On the maintenance side, Talgo maintains a solid contract base in seven countries that provide long-term visibility of revenues and activity with a consolidated and constantly growing portfolio.

Outlook in 2025

Talgo has confirmed its outlook for 2025 in terms of revenues, supported by the execution of the projects in the portfolio. Robust industrial activity, supported by a strong order book, is expected to maintain high revenue levels in 2025, as well as stabilization of working capital and financial debt, aligning with ongoing project execution schedules and new contract awards. On the other hand, order intake is estimated to maintain Talgo’s strong commercial momentum, capitalizing on ongoing opportunities.

In terms of business profitability, Talgo forecasts an Ebitda of 11% for the year. Also in 2025, Talgo establishes an investment forecast in Capex of 55 million euros, including investment in R+D. In relation to Net Financial Debt, the company expects to maintain it at 4 times the Ebitda for the year, in line with the expected cash needs of the projects.

Talgo is working on commercial opportunities in a large number of markets, for a total value of 5,000 million euros for the period 2024-2026. In addition, the possibility of competing for projects worth more than 20,000 million euros is being studied in detail.

In this sense, Talgo’s cutting-edge technology and know-how place the Company as an international benchmark in the decarbonisation of passenger transport, also consolidating itself as a highly competitive solution for the Middle East and North Africa region. Talgo’s long-distance passenger train solutions are also established as a benchmark for their contribution to the reduction of carbon emissions and energy efficiency when compared to other transport alternatives.

About Talgo

Talgo is a leader in the design, manufacture and maintenance of high-speed and intercity trains, with industrial presence in Spain, Germany, Denmark, Saudi Arabia, Egypt, Kazakhstan, Uzbekistan and the United States. Recognised worldwide for its capacity for innovation, unique and distinctive technology and reliability, the company has a team of more than 3,300 people of around 50 nationalities.

Talgo is the main supplier of high-speed and very high-speed trains to Renfe, and the supplier of trains for the “Haramain” project between Mecca and Medina in Saudi Arabia. Talgo is also the manufacturer chosen by Deutsche Bahn in Germany and the DSB in Denmark to decarbonise their mobility with Talgo 230 Intercity trains.

Press contact:

VK Comunicación
Virginia Knörr Barandiaran
Tfno: 944 01 53 06 – Móvil: 629 15 60 31
E-mail: virginia@vkcomunicacion.com

Maite Gutiérrez Álvaro
Tfno: 639 197 133
maite@vkcomunicacion.com