Spanish manufacturer Talgo earns a record $709.2 million in revenue for 2024. This milestone reflects a 2.5% increase, surpassing the $690.3 million from 2023. This is reported by the railway transport news portal Railway Supply.

Spanish manufacturer Talgo earns a record $709.2 million in revenue for 2024. This milestone reflects a 2.5% increase, surpassing the $690.3 million from 2023.
Photo: Talgo

Talgo Achieves Record Revenue and Growth in 2024

Increased industrial activity drives this growth, aligning with production schedules for key projects. Consequently, the company achieves its highest annual turnover, showcasing robust operational success.

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The company records an EBITDA of $74.2 million in 2024, excluding a penalty provision. Meanwhile, the EBITDA margin reaches 10.5%, and net profit hits $9.3 million.

Talgo invests $50.9 million in capital expenditures, including $37.1 million for innovation. Thus, the company strengthens its position through significant research and development efforts.

The company allocates $122.96 million under operating expenses for potential Renfe penalties. This provision addresses delays in delivering 30 AVRIL high-speed trains to Renfe.

Company directors, legal advisors, and analysts assess a higher penalty likelihood this year. However, the company attributes delays to external factors and pursues a fair resolution.

The company argues that external factors beyond its control cause the delivery setbacks. Therefore, Talgo plans to negotiate with Renfe to protect shareholder interests.

Long project timelines and schedule adjustments frequently occur in the railway sector. So, the company emphasizes that such challenges remain common across the industry.

Talgo Expands Globally with Strong Orders and Outlook

The company maintains an order book worth $4.42 billion by the end of 2024. This portfolio includes manufacturing and maintenance contracts, ensuring steady revenue for years.

International projects account for over 80% of the order book, boosting global reach. Additionally, key orders drive manufacturing activity across multiple countries in 2024.

The company produces 79 Intercity Talgo 230 trains for Germany’s Deutsche Bahn this year. Meanwhile, Denmark’s DSB orders 16 similar trains, and Egypt secures seven units.

Spain’s Renfe contracts 26 high-speed tractor units plus maintenance services from the company. Thus, the maintenance segment bolsters cash flow and revenue stability significantly.

Maintenance contracts in seven countries support the company’s long-term growth strategy effectively. Consequently, this segment delivers predictable cash flow and strengthens financial performance.

The company leverages these agreements to sustain operations and expand internationally. So, maintenance remains a cornerstone of its business model in 2024.

The company confirms its 2025 revenue outlook, relying on its current order book execution. Talgo anticipates strong industrial activity and stable working capital next year.

An EBITDA margin of 11% targets profitability, with $58.3 million planned for investments. Moreover, the company aims to keep net debt at four times EBITDA.

The company explores commercial opportunities worth $5.3 billion for the 2024-2026 period actively. Additionally, Talgo evaluates bids for projects exceeding $21.2 billion soon.

These prospects position the company for sustained growth and increased market presence globally. Therefore, strategic planning ensures it capitalizes on emerging railway demands.

The company’s record revenue and solid order book highlight its 2024 achievements clearly. Looking ahead, Talgo prepares for growth, innovation, and industry leadership in 2025.

With international expansion and strategic investments, the company drives forward its ambitious vision. Thus, the Spanish manufacturer solidifies its role in the global railway market.

Source: www.tinn.ir

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