Thursday, February 29, 2024
Talgo S.A., a prominent player in the realm of high-speed light trains, showcased robust financial performance in 2023, with revenues soaring to €652 million, marking a notable 39% surge from the previous year’s €469.1 million. This increase primarily stems from heightened industrial activity aligned with manufacturing project schedules.
The company achieved an EBITDA of €76.5 million in 2023, a remarkable 55% rise compared to the €49.3 million in the preceding year. This upswing can be attributed to increased industrial activity, bolstered by extraordinary figures due to contract extensions with Germany’s DB and Denmark’s DSB. Despite a substantial eight-fold increase in net profit to €12.2 million, rising interest rates had a negative impact, leading to a surge in the Group’s financial expenses.
By the end of 2023, Working Capital (WC) stood at €384.9 million, reflecting the ongoing manufacturing cycle phases and resulting in a rise in net financial debt to €241 million. Talgo maintains a robust financial stance with diverse funding sources and over €200 million in cash and available credit lines. Furthermore, the company initiated a Promissory Note Program in the Spanish Fixed Income Market for a maximum amount of €150 million in February of that year.
Capex investments totaled €26.4 million in line with initial forecasts, with 74% allocated to R&D activities. Talgo continued its commitment to shareholder remuneration through a €12 million Scrip Dividend and completed a share buyback program in January 2024, with 83% of shareholders opting for the flexible dividend in shares, underscoring their confidence in the company’s future.
Record-high order backlog
Talgo concluded the year with a robust order backlog of €4,223 million, up by 54% from the previous year, alongside historic highs in new orders surpassing €2.1 billion. This momentum was driven by projects in Germany, Denmark, and Spain, including the design and manufacture of various trains for Deutsche Bahn, DSB, and Renfe, respectively.
Most new orders represent extensions of existing contracts, mitigating execution risks and ensuring stability in manufacturing schedules while facilitating industrial efficiencies. Additionally, Talgo maintains a solid base of maintenance contracts in seven countries, providing long-term revenue visibility.
Outlook for 2024
Talgo remains optimistic about its 2024 prospects in terms of revenue, supported by ongoing project executions. The company forecasts an EBITDA margin of 11.5% and plans Capex investments of up to €30 million. It aims to maintain Net Financial Debt at 3.0x EBITDA, aligned with projected cash requirements.
Talgo is actively pursuing commercial opportunities in various markets, with a value exceeding €5 billion for the period 2024-2026, while also exploring projects worth over €20 billion. Its advanced technology and expertise position the company as a global leader in passenger transportation decarbonization, particularly in MENA countries. Additionally, Talgo’s long-distance train solutions contribute significantly to reducing carbon emissions and enhancing energy efficiency compared to other transport modes.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
