Talgo increases its net profit by 75%
Posted on 17 Dec 2019 and read 863 times
Talgo SA — a Spanish manufacturer of inter-city, standard and high-speed passenger trains — registered a net turnover of 275.5 million euros in the first nine months of 2019, up from the 236.8 million euros reached in the first nine months of 2018.
The company (www.talgo.com
) says that this 16.3% increase reflects “the beginning of a new business growth cycle, supported by recent awards that have strengthened the backlog with high-quality project orders worth over 3.1 billion euros.
Adjusted EBITDA for the first three quarters of 2019 reached 50.5 million euros, representing a 5% growth. Net profit stood at 24.9 million euros, which represents an increase of 75%.
During the first quarter of 2019, Talgo’s newly awarded contracts amounted to 827 million euros, mainly derived from the project awarded by Deutsche Bahn in February, which includes the manufacture of 23 long-distance trains worth 550 million euros (this project is part of a framework agreement for the manufacture of up to 100 trains, valued at 2 billion euros).
Talgo is currently working on over 25 ‘commercial opportunities’ that are expected to be awarded in the short and medium term; these are worth about 8.5 billion euros and mainly come from European countries and America.
Of the total identified opportunities, 49% of the volume comes from the Very-High-Speed segment (such as the UK’s HS2 project), as well as the ‘commuter segment’.