Talgo increases its net profit in Q1
Posted on 10 Jun 2019 and read 979 times
Talgo — a rolling-stock engineering company focused on designing, manufacturing and servicing fast lightweight trains — registered net revenues of 87.1 million euros in the first quarter of 2019.
This represents a 2.2% year-on-year increase and is in line with expectations.
Its adjusted EBITDA for Q1 stood at 15.9 million euros (similar to the 15.8 million euros registered for Q1 2018), and Q1 2019 net profit stood at 7.1 million euros, representing a 70% increase — a result of lower depreciation and amortisation costs, as well as lower financial costs.
) results for Q1 2019 reflect “the good progress of national manufacturing projects”, such as the one for Spanish train operator Renfe (this includes the manufacture of 30 Talgo Avril trains and their maintenance for 30 years), the conversion of Renfe’s series 7 ‘hotel trains’ into Very High Speed versions, the progress of international projects such as the manufacturing of up to 23 long-distance trains for Deutsche Bahn (currently in an early engineering phase), and the remodelling of the Los Angeles subway cars in the USA.
During the first quarter of 2019, Talgo’s new contracts were worth some 550 million euros.
Moreover, the company is “participating in more than 20 commercial opportunities” that it hopes will lead to orders in the short and medium term.
Worth about 6.7 billion euros, these tenders mainly cover Very High Speed projects (such as the UK’s HS2), as well as local and regional markets such as Europe (particularly Spain) and the MENA region (Middle East and North Africa).