Renta 4 | The company has informed the National Securities Market Commission (CNMV) that it has been awarded a contract with FlixTrain, a subsidiary of the global travel technology company Flix SE, for the supply and maintenance for 15 years of up to 65 Talgo 230 trainsets.
The contract value amounts to €2.4 billion, with the scope of the first order being 30 trains and maintenance for 15 years for an amount of around €1.1 billion. The trains will be operated in Germany, Austria, the Netherlands, Denmark and Sweden and will be fully interchangeable between the different countries.
Assessment: Positive news given the size of the contract which represents around 58% of Talgo’s current order book, with the first order representing around 27% of the order book at the end of 1Q25.
Despite the capacity issues, Talgo has commented that with certain investments the contract will be completed at its facilities. We reiterate our recommendation and target price of Under Review.
