Talgo and CAF expect profitability to grow in 2021

Leading Spanish rolling stock manufacturers Talgo and CAF have announced their results for 2020. Both companies recorded a drop in profits and a deterioration in EBITDA, despite the growth in revenues. However, in 2021 they plan to return to their previous profitability, informs Railway Supply magazine with reference to Zdmira.

Talgo and CAF expect profitability to grow in 2021

Talgo’s adjusted EBITDA last year was 34.2 million euros, which is 54.5% lower than the previous year, when it reached 75.2 million euros. However, in the second half of the year, profitability was able to recover from zero percent in the second quarter to 7% in the fourth, thanks to a recovery in the industrial sector and a partial recovery in the maintenance and repair sector.

Talgo’s turnover reached € 487.1 million, up from € 401.7 million in 2019. At the same time, in the fourth quarter, income in relation to the same period of the previous year increased by 20.3%.

The order book at the end of the year was estimated at 3.18 billion euros, which allows to ensure the utilization of production facilities until 2024 inclusive.

CAF’s Adjusted EBITDA for FY2020 was € 201 million, 18% lower than in 2019. Revenues for the year increased from 2.6 billion to 2.8 billion euros.

CAF’s order book is estimated at 8.8 billion euros. In 2021, the company is counting on growth in revenues and profits by receiving orders delayed due to the pandemic.

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