Talgo (TLGO) Q2 2024 earnings summary

Executive summary

• Net turnover for H1 2024 reached €346 million, a 20% increase year-over-year, driven by strong industrial activity and execution of the order book.

• EBITDA rose to €41 million (11.8% margin), up from €34 million (11.6%) in H1 2023; EBIT reached €29 million, and net profit after tax doubled to €15 million.

• Net financial debt increased to €357 million (4.3x EBITDA), reflecting higher working capital needs and investments.

• The order backlog remains robust at €4,014 million, with significant contract execution ongoing and new awards expected.

Financial highlights

• Revenue grew 20% year-over-year to €346 million in H1 2024.

• EBITDA was €41 million (11.8% margin), EBIT €29 million, and net profit €15 million, all showing strong year-over-year growth.

• Operating cash flow was negative at €100 million, mainly due to increased working capital and investments.

• Cash and cash equivalents stood at €112 million at period end.

• Net financial debt rose to €357 million from €175 million a year earlier.

Outlook and guidance

• Awaiting major contract awards for train supply and maintenance, which could further boost the order book and workload in 2024.

• Management expects continued high industrial activity and execution of the record backlog.

• Ongoing investments in R&D and production capacity to support future growth.