Talgo revenue rises due to ‘increased industrial activity’
Talgo reports revenues of 166.5 million euros through March 2024, representing a 31.4 per cent increase compared to the same period last year.
Talgo attributes this surge in revenue to their increased industrial activity, including projects for DB, DSB, and Renfe. Additionally, revenue growth was supported by increased recurring income from maintenance services.
In the first quarter of 2024, Talgo recorded an EBITDA of 20.1 million euros with a margin of 12 per cent, reflecting the implementation of an industrial action plan to mitigate supply chain disruptions and inflation impacts, thereby reducing project execution risks.
Net profit of 10.4 million euros
Net profit stood at 10.4 million euros in the first three months of 2024, a significant increase from 2.4 million euros in the same period last year.
During the first quarter of 2024, the company’s industrial activity reflected anticipated growth, with an increase in the pace of project manufacturing. Talgo anticipates this trend to continue throughout the year.
4 billion euros in backlog
Talgo boasts a backlog of orders exceeding 4 billion euros, with most new orders being extensions of existing contracts, such as those with DB and DSB, incorporating indexation clauses to mitigate inflation risks. The backlog is also supported by the recurrent activity of maintenance services, contributing to long-term business growth with stable contracts.
Outlook
Outlook for 2024 confirms the solid business performance and project execution, with expected high levels of activity and recognized revenues, maintaining stable EBITDA margins at 11.5 per cent.
In 2024, Talgo forecasts a Capex investment of around 30 million euros and stable Net Financial Debt compared to 2023, around 3.0 times EBITDA, reflecting projected cash needs for projects.
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