Talgo achieves a net profit of 61,9 million euros and great international successes during 2016

During 2017 it will add more strategic projects

The company has been able to take advantage of opportunities to reinforce its positioning throughout the world as a quality benchmark in the high-speed market.

[Img # 22263] Talgo, a leading company in the design, manufacture and maintenance of high-speed light trains, recorded a turnover of 579,8 million euros in 2016, which represents a growth of 11,3 percent compared to the previous year.

Net profit increased by 3,8 percent in the last year to reach 61,9 million euros. These results respond mainly to the strong manufacturing activity related mainly to the Saudi Arabia, and supported by the solid and recurring maintenance activity as well as the marketing of maintenance equipment. Added to this positive business performance is the recent award of a rolling stock renewal contract in United States as well as the supply and maintenance of 15 AVE trains for the Spanish operator Renfe, both considered strategic profiles for the company.

El EBIT adjusted for the year 2016 reached 113,3 million euros, maintaining margins at around 20 percent, in line with the margin objectives established by the company for the year.

In 2016 Talgo delivered 3 trains to Russian Railways that began service in December 2016 to link the cities of Moscow and Berlin. These trains, called Strizh (swift), are the first trains capable of crossing the border between Belarus and Poland thanks to the gauge change system, technology developed by Talgo and of special relevance for routes with different track widths.

The net turnover and operating margins of Talgo They depend on the execution phases of manufacturing projects. In fiscal year 2016, Talgo's results reflect the good progress of its industrial activity and the execution of its international projects, which represented 82 percent of the company's income in 2016.

Talgo has identified opportunities until 2019 worth approximately €6,700 billion, mainly in markets such as Europe, Southeast Asia and the Middle East.

En Saudi Arabia, the company is progressing at a good pace in the manufacturing and testing of the 36 trains for the Mecca-Medina, adjusting to the planned times. For its part, in Kazakhstan, the company continues satisfactorily with the development of another of its large projects, the manufacturing of a second order of 603 pendulum cars, having adapted the manufacturing pace to the requirements of the Kazakh operator last year.

New strategic projects

Talgo will add two large projects in 2017. In September 2016, the company signed a contract with LACMTA (Los Angeles Metropolitan Transportation Authority) for the renewal of rolling stock and updating of the relevant technology of the Los Angeles Metro Red Line. Furthermore, in December 2016, the Spanish operator Renfe awarded Talgo the high-speed macro tender, which contemplates the supply of 15 AVE trains with the option of 15 additional ones, and their maintenance for 30 years, when presenting its Avril train, faster, lighter, more efficient and more sustainable than, according to the company president, Carlos de Palacio Oriol, “not only saves energy and maintenance costs for operators, but also preserves the ecological spirit that governs our time and that of our future generations.”

In the words of the CEO of Talgo, José María Oriol, “2016 has been a year of significant growth in turnover and great successes for our company both in Spain and internationally. Talgo has been able to take advantage of opportunities to reinforce its positioning throughout the world as a quality benchmark in the high-speed market, which demonstrates the excellent work carried out in recent years. Thus, this year, we have been awarded two strategic projects that guarantee the sustainability of our business model in the long term and allow us to explore decisive market segments internationally to continue betting on the business diversification that our company began in 2016." .

Looking ahead to the coming months, Talgo has identified opportunities until 2019 worth approximately 6,700 billion euros, mainly in markets such as Europe, Southeast Asia and the Middle East. Opportunities encompass high-speed projects, a segment where greater growth potential is anticipated, and passenger car manufacturing and maintenance projects, both market segments where the experience and distinctive technology of Talgo They give you a clear competitive advantage. Likewise, the company has identified a number of opportunities in the commuter and regional train segment, for which it has recently developed Talgo EMU, a completely flexible and adaptable platform that can travel up to 160 km/hour and has the unique technology of the company.