Talgo (TLGO) Q4 2023 earnings summary

Executive summary

• FY2023 revenue reached a record €652.0m, up 39% YoY; EBITDA rose 55.1% to €76.5m, with an 11.7% margin.

• Order intake was €2.127bn and year-end backlog reached a record €4.223bn, providing visibility into future activity; FY2024 revenue guidance was confirmed.

Financial highlights

• Revenue was €652.0m in FY2023 versus €469.1m in FY2022, reflecting higher manufacturing activity.

• EBITDA was €76.5m versus €49.3m in FY2022; the 11.7% margin compared with 10.5% in FY2022, while adjusted EBITDA was €82.6m with a 12.7% margin.

• Net income rose to €12.2m from €1.4m; net financial expenses increased to €37.7m, including €14m of one-off IFRS 9 expenses linked to the DB project advance structure.

Outlook and guidance

• FY2024 revenue guidance was confirmed; EBITDA margin target is ~11.5%, equivalent to ~12.5% on an adjusted EBITDA basis.

• FY2024 targets include stable working capital, net debt of ~3.0x EBITDA, capex of ~€30m excluding project R&D investment, and execution of ~45% of backlog across 2023–24.

• FY2024 book-to-bill is targeted above 1.0x, with strong commercial momentum and ongoing opportunities supporting expected order intake.