Talgo (TLGO) Q2 2025 earnings summary

Executive summary

• Revenues for H1-2025 were €270.1 million, impacted by a €37.5–40 million negative adjustment from the ICE L/DB contract and project delays.

• Net loss for H1-2025 was €65.7 million, compared to a €14.6 million profit in H1-2024, mainly due to contract amendments and legal settlements.

• EBITDA was negative at €16.5 million, down from €41 million in H1-2024, reflecting project adjustments and settlements.

• Backlog reached a record €4,967 million, driven by a €2.4 billion Flixtrain contract for up to 65 trainsets and 15 years of maintenance.

• Ongoing negotiations with DB may reduce ICE L fleet from 79 to 60 units, affecting revenue recognition and project scope.

Financial highlights

• H1-2025 revenues were €270.1 million, or €307.6 million excluding the DB/ICE L contract adjustment.

• EBITDA was €-16.5 million, but would be €23.4 million excluding DB and LACMTA effects.

• Net income for H1-2025 was €-65.7 million, down from €14.6 million in H1-2024.

• Net financial debt increased to €467 million, up from €404 million at year-end 2024 and €357 million in June 2024.

• Operating cash flow was negative at €-45.4 million in H1-2025, improved from €-90.5 million in H1-2024.

Outlook and guidance

• FY-2025 revenue guidance is €560–590 million; EBITDA expected at €40–50 million, excluding DB and LACMTA adjustments.

• Net financial debt projected at €350–400 million by year-end, assuming €150 million capital operation completion.

• Order intake for 2025 expected at €2.3 billion; backlog could exceed €7 billion if pending awards are formalized.

• Completion of equity and financing transactions, including SEPI’s entry and new syndicated loans, is critical for going concern.

• Failure to complete these transactions would require alternative measures to strengthen equity and liquidity.