TALGO: Spanish rolling stock manufacturer Talgo signed new orders totalling €700m in 2017, its highest intake since 2011, and increased its order backlog to €2·8bn as of the end of the year, representing more than seven times its full-year revenue.

Net turnover of €384m was down from €580m in 2016, but the company said this was a consequence of the timing of the end of production of rolling stock for the Haramain High Speed Rail project and the start of manufacturing of 30 Avril high speed trains for RENFE.

EBITDA was €87·6m and adjusted net profit reached €42·8m in 2017, with the operating margin of 23% being above forecasts. Free cash flow reached €188m and debt fell to €30m.

Talgo said contracts won last year would support manufacturing activity for the near future, while the Avril order provided a reference which would help when marketing the design abroad. Other ‘milestone’ contracts included an order to modernise 36 additional LRVs for Los Angeles, a refurbishment contract in Spain and a maintenance contract in Uzbekistan. Talgo also prequalified to bid to supply trainsets for the UK’s High Speed 2.

Looking to 2018, Talgo said it foresees additional business opportunities worth more than €8·5bn in Europe, southeast Asia and the Middle East, and expects to diversify its range to include commuter and regional trains.