Talgo (TLGO) Q1 2025 earnings summary

Executive summary

• Q1-2025 revenue reached €154.3m, with EBITDA at €13.6m amid a challenging environment and improved health and safety performance, as accident frequency and severity rates dropped by nearly 50% compared to Q1-2024.

• Order book exceeded €4bn, with a pipeline of commercial opportunities valued at €11.6bn and €5.8bn in bids already submitted.

• Maintenance activities represent about 50% of the order backlog, supporting stable cash flow and expanding the installed base, though Spanish operations saw reduced profitability.

• Ongoing negotiations with Deutsche Bahn for the largest project in the backlog, with first deliveries of Talgo 230 trains expected in H2-2025.

• 27 out of 30 Talgo Avril high-speed trains for Renfe have been delivered and are in commercial operation, achieving high reliability and availability.

Financial highlights

• Q1-2025 revenues reached €154.3m, slightly below Q1-2024 (€166.5m).

• EBITDA for Q1-2025 was €13.6m (8.8% margin), down from €20.1m (12.0%) in Q1-2024, reflecting lower manufacturing activity and reduced kilometres maintained for Renfe Series 102/112.

• Net income for Q1-2025 was €(7.1)m, impacted by lower manufacturing progress, higher indirect costs, increased D&A, and financial expenses.

Outlook and guidance

• Guidance for FY-2025 is on hold due to uncertainties in main projects, ongoing negotiations with Deutsche Bahn, and transitional capital structure.

• Previous outlook targeted EBITDA margin of ~11%, revenues above €600m, and book-to-bill ratio >1.0x.

• Action plan includes reassessment of estimates and focus on stability and adaptation.