Maintenance Business Grows to Become Half of Talgo's Operations

Maintenance has long been a key pillar of Talgo's business, now accounting for approximately 50% of its total order portfolio. These long-term framework agreements covering multiple countries not only ensure stable cash flow but also serve as the core of the company's operations during periods of low manufacturing output.

Talgo's Avril platform has achieved a milestone of delivering 27 out of 30 units. The Talgo 230 trains, specifically designed for Deutsche Bahn (DB), are scheduled for delivery to DB in Germany and DSB in Denmark in the second half of the year. Through modular design and localized production strategies, these models effectively reduce maintenance costs for cross-border operations, further strengthening Talgo's competitiveness in the European regional market.

Due to the uncertainty surrounding contracts with Deutsche Bahn (DB) and internal structural adjustments, Talgo has suspended its 2025 market guidance, stating that it cannot accurately predict performance metrics under current commercial conditions. Financial reports indicate that increased amortization costs for the Avril and Talgo 230 platform R&D, coupled with rising financial expenses, have led to reported losses. Despite these challenges, Talgo continues to advance project delivery and management transitions across multiple international markets, aiming to alleviate short-term financial pressures by optimizing its supply chain and focusing on high-margin maintenance services.