The net profit increase is attributable to lower depreciation and amortisation costs as well as lower financial costs following the recent restructuring of the company’s debt. Talgo’s adjusted Ebitda for the first quarter was €15.9m, similar to the €15.8m reported in 2018.
Talgo says its results reflect the good progress of domestic projects, including the supply of 30 Avril high-speed trains to Renfe and the conversion of Renfe class 7 hotel trains into high-speed trains. It is also working on 23 long-distance trains for German Rail (DB) and refurbishing metro cars in the United States. The completion of the Haramain high-speed project in Saudi Arabia also contributed positively to revenues during the quarter.
Orders secured in the first quarter totalled €550m, with the majority of this attributable to the contract with DB. Talgo says it is currently participating in 20 tenders due for award in the short-to medium-term worth a cumulative €6.7bn. It also expects to report strong double-digit revenue growth in the remainder of 2019 in an updated outlook for the year.
