Talgo Reports Record Revenue of €669 Million in 2024

Spanish train manufacturer, Talgo recorded a revenue of 669.2 million EUR in 2024, marking its highest annual turnover to date. This represents a 2.5% increase from the 652 million EUR generated in 2023. The growth was attributed to increased industrial activity aligned with production schedules for ongoing projects.

The company reported an EBITDA of 70 million EUR for 2024, excluding a provision related to a penalty imposed by Renfe. The EBITDA margin stood at 10.5%, while net profit, also excluding the provision, was 8.8 million EUR.

Notably, Talgo invested 48 million EUR in capital expenditures, including 35 million EUR allocated to research and development.

Renfe Penalty Provision

Talgo has set aside 116 million EUR under ‘Other Operating Expenses’ as a provision for potential penalties related to the delay in delivering 30 AVRIL high-speed trains to Renfe. This provision follows an assessment by the company’s directors, legal advisors, and independent financial analysts, who identified an increased probability of the penalty being enforced.

The company maintains that the delays were due to factors beyond its control and has stated its intention to seek a resolution with Renfe that safeguards its interests and those of its shareholders. Talgo has also indicated that it reserves the right to pursue legal action if necessary.

Talgo highlighted that long project timelines and external factors affecting delivery schedules are common in the railway industry. Adjustments to delivery schedules without contractor liability occur frequently in the sector.

Order Book and International Projects

The company’s order book stood at 4.17 billion EUR at the end of 2024, maintaining a similar level to the previous year. The order portfolio comprises both manufacturing and maintenance contracts, ensuring stable revenue streams over the coming years. More than 80% of the order book is linked to international projects, reflecting Talgo’s global expansion.

Manufacturing activities in 2024 were driven by orders including:

• 79 Intercity Talgo 230 trains for Deutsche Bahn in Germany
• 16 Intercity Talgo 230 trains for DSB in Denmark
• 7 trains for Egypt
• 26 high-speed tractor units and maintenance contracts for Renfe in Spain

The maintenance segment also continues to contribute significantly to Talgo’s business, providing predictable cash flow and long-term revenue stability. The company currently holds maintenance contracts in seven countries, supporting its strategic growth.

Outlook for 2025

Talgo has confirmed its revenue outlook for 2025, driven by the execution of its existing order book. The company expects to maintain strong industrial activity, stabilise working capital, and manage financial debt in line with project requirements and new contract acquisitions.

For 2025, Talgo projects an EBITDA margin of 11% and plans to invest 55 million EUR in capital expenditures, including research and development. The company aims to keep its net financial debt at approximately four times its EBITDA.

Looking ahead, Talgo is actively exploring commercial opportunities worth 5 billion EUR for the 2024-2026 period. Additionally, the company is assessing potential bids for projects exceeding 20 billion EUR.