Talgo reports Net profit of 21 €m in 9M 2021 driven by improved operational and financial performance

• Revenues in the first nine months of 2021 increased to 427 €m reflecting the recovery in industrial activity
• Adjusted EBITDA reached 49.8 €m (11.7% margin) in the first nine months of 2021, while in the same period of the previous year adjusted EBITDA amounted to 22.6 €m (6,7% margin), in line with increased industrial activity and gradual recovery of maintenance activity
• The company has a solid order book (3,013 €m) that guarantees a strong industrial activity until 2024
• Talgo Vittal-One to become world's first dual hydrogen-electric train

Talgo S.A., a leading company in the design, manufacture, and maintenance of high-speed light trains, registered a record revenue of 427 €m in the first nine months of 2021, up by 25.8% compared to the 339.4 €m registered in the same period of the previous year. Likewise, Net profit in 2021 has grown to 21 €m compared to a negative result of 8 €m in the third quarter of 2020. Net profit increase is the result of an improved operational and financial performance; while in terms of revenues is attributable to the ongoing phase of the manufacturing and overhaul projects, led by RENFE's Spain Very High-Speed project and to an increased maintenance activity.

Talgo reported adjusted EBITDA of 49.8 €m (11.7% margin) in the first nine months of 2021, up from 22.6 €m, (6.7% margin) in the same period last year. This increase reflects a higher industrial activity in the manufacturing business line, together with the continued recovery of maintenance services in all markets and it shows.

In addition, the company expects to meet the target set to reduce overheads by 15% in the period 2021-22 to improve competitiveness and flexibility.
Increasing prices of raw materials and transport services has no impact in projects with high degree of advance, while it has been updated in the margin of those with a lower degree of advance.

Solid backlog and commercial strategy

The company has a solid order backlog of 3,013 €m, a figure that rises to 3,262 €m when including the 249 €m of contracts awarded in 9M2021 and still to be signed. This is a high quality and well-diversified order book, with around 1,000 €m in manufacturing and overhaul orders, which guarantees strong industrial activity until 2024.

The maintenance activity is close to fully recover its profile as a recurring and stablenbusiness unit, supporting the generation of revenues and cash flows of the business.

In terms of current projects, it is worth highlighting the high level of execution of the Spanishnproject for RENFE for Very High-Speed trains, which is already in the testing phase, and thebproject for DB in Germany, which it is expected to be the main revenue generator from 2022bonwards. To which must be added the start of the manufacturing phase of the projects for DSB (Denmark), ENR (Egypt) and ADIF in Spain, among others.

Talgo aspires to become a benchmark in the market as a provider of more sustainable solutions for medium and long-distance trains. In this sense, the company continues to focus its commercial activity on its strategic long-distance and high-speed segments, where it is already one of the international leaders, while using its Talgo Vittal platform to position itself in the commuter/medium-distance segment, with the Vittal-One variant through which it is developing its green hydrogen technology as the most ecological solution to contribute to the process of decarbonisation of transport in the coming years and which will be the world's first dual hydrogen-electric train.

Note to editors:
Talgo S.A., is the leading company in the design, manufacture and maintenance of high-speed light trains with industrial presence in nine countries: Spain, Germany, Kazakhstan, Uzbekistan, Denmark, Egypt, Russia, Saudi Arabia and the United States. The Company is recognized worldwide for its innovative capacity, unique and distinctive technology and reliability. Talgo is the train supplier for the "Haramain" high-speed rail project between Mecca and Medina in Saudi Arabia.

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