Egyptian National Railways Talgo inter-city train

INTERNATIONAL: Spanish rolling stock manufacturer Talgo says it foresees an increase in revenue in 2023, driven by its ongoing projects and the good performance of the rail sector.

It is working on several opportunities with a total value of €7·6bn for 2023-24, with Europe, the Middle East and North Africa seen as the main growth markets where it has opportunities worth €2·5bn in contract extensions in the short and medium term.

Talgo said it aspires to become a global reference provider of rolling stock, and ‘has already established itself as a major player in this process in Europe’ with orders from Deutsche Bahn and Denmark’s DSB.

2022 results

On February 28, Talgo reported revenue of €469·1m for 2022, a decrease of 15·5% on the previous year which it said was ’mainly due to the current international context, marked by a peak in raw materials prices and disruptions in global supply chains and inflation’.

Adjusted EBITDA was down 18·6% at €52·5m as a result of global supply chain disruption and inflation.

Net profit was €1·4m, impacted by the termination of its activities in Russia following the full-scale invasion of Ukraine, the reversal of tax losses recorded at its US subsidiary, and higher financial expenses resulting from the rise in interest rates in the market.

At the end of 2022, Talgo had an order backlog of €2·7bn, ensuring ‘strong’ industrial activity in 2023-25. Maintenance services represent 71% of the backlog, with Talgo saying it has a strong global presence offering recurring cash flows over the long term which are, for the most part, indexed to inflation to protect against price volatility.