This Tuesday, Talgo presented its results for the first quarter of the year, in which it obtained a net profit of 10.4 million euros, which improves by 333% the 2.4 million euros registered in the same period of the previous year, according to the information sent to the National Securities Market Commission (CNMV). The company has achieved some revenue of 166.5 million euros until March, representing an increase of 31.4% compared to the figure recorded in the first quarter of 2023. This growth in income, the company assures, is due to the «increase in the company's industrial activity, with projects for the German railway operators, DB, and Danish, DSB , as well as very high speed locomotives for Renfe». All this, supported by the increase in recurring income from maintenance services. Besides, Talgo has recorded an Ebitda of 20.1 million euros in the first quarter, with a margin of 12%. This figure «responds to the industrial action plan implemented to mitigate disruptions in the supply chain and the impact of inflation, and thus reduce project execution risks.» «During the first quarter of 2024, The company's industrial activity has reflected the expected growth, with an increase in the manufacturing pace of ongoing projects. The company expects this trend to continue throughout the year,» highlights Talgo.
OUTLOOK 2024
The signature has confirmed the outlook for the year as a whole given «the solidity of the business and the good performance of the execution of the projects.» In this way, it anticipates a revenue growth of 45% with an Ebitda margin of 11.5%.
Talgo also establishes a Capex investment forecast of around 30 million euros and a «stable» net financial debt with respect to 2023, which places it at around 3.0 times Ebitda, «reflecting the projected cash needs of the projects.»
ORDER-BOOK
The company has a order book of more than 4,000 million euros, with the majority of new orders being extensions of existing contracts, such as DB and DSB, which incorporate indexation clauses to mitigate possible inflation risks. Likewise, the portfolio is supported by the recurring activity of maintenance services, contributing to business growth with stable long-term contracts. «The order book, at historic highs, provides great visibility on the company's revenue and future industrial activity. Likewise, it positions Talgo's cutting-edge technology and its 'know-how' as an international benchmark in the decarbonization of passenger transport, with a special focus on the European market,» the company concludes.