Talgo predicts growth after lull in the production cycle
TALGO: Spanish rolling stock manufacturer Talgo expects to see ‘significant’ revenue growth in 2019, with a mix of ‘low risk and high quality’ projects. The company said its ‘solid and stable’ order backlog had reached €3·16bn in February after winning a €550m contract to supply Deutsche Bahn with 23 trainsets.
Talgo is aiming to expand into new geographical markets and diversify its product portfolio, and is currently working on tenders for contracts with a total value of €7·4bn that are expected to be awarded over the next 24 months.
The company recorded net revenue of €324m for 2018, saying the reduction from €384m in 2017 was a consequence of the phasing of manufacturing projects. This included the transition from the production of trainsets for the Haramain High Speed Rail project to the manufacturing of 30 Avril high speed trainsets for RENFE.
This fall in revenue was offset by the ‘positive evolution’ of the operating margin, with adjusted EBITDA of €66m, a 20% margin and an adjusted net profit of €27m. The company expects to maintain its EBITDA margin target at 18% for 2019.