Talgo (TLGO) Q2 2025 earnings summary

Executive summary

• Initiated capital and financing operations to reinforce equity and support working capital investments for a growing backlog, expected to exceed €7 billion soon.

• Secured a record €2.4 billion contract with Flixtrain for 65 intercity trainsets, with an initial order for 30 trains and 15 years of maintenance.

• Ongoing negotiations with DB to reduce manufacturing scope from 79 to 60 trains, impacting revenue recognition and project scope.

Financial highlights

• H1-2025 revenues were €270.1 million, or €307.6 million excluding a €37.5 million DB/ICE L contract adjustment.

• EBITDA was negative at €(16.5) million, reflecting a €40 million negative adjustment from the ICE L project and legal settlements.

• 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.

• Operating cash flow was negative at €(45.4) million in H1-2025.

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 €7,000 million if awarded projects pending formalization are included.