Downer EDI has told investors its troubled Waratah Train project is back on track and will be delivered within cost and program.

The train manufacturer and engineering firm has run into financial woes with the $3.6 billion taxpayer-funded rail project hit by cost blow-outs and delays.

The company told an investor day on Wednesday that eight trains were now in use, with a ninth due to be presented for practical completion this Friday.

It plans to have 26 trains rolled out by the end of the year out of the 78 passenger trains to be used by Sydney commuters.

Earlier this year the NSW government agreed to bail out the troubled project, in return for 100 per cent equity in it.

Downer also confirmed its previous full year guidance of underlying earnings of about $340 million and profit of about $180 million for the 12 months to June 30.

In February Downer EDI posted a $84.9 million profit in the six months to December 31, reversing a $103.8 million loss in the prior corresponding period, driven by a 79 per cent increase in revenue from its mining division.

Downer EDI’s shares had risen three cents to $3.45 at 1245 AEST on Wednesday.