Company Reports

Alstom offers a comprehensive portfolio, including rolling stock (51% of revenue), services (24%), and signaling and systems (25%), setting it apart from competitors.

Alstom’s fiscal first-quarter sales rose 4.9% to EUR 4.73 billion, while orders fell 37% to EUR 2.56 billion. TGV-M received final authorization and management maintained its 5% sales growth, 6.5% adjusted EBIT margin, and positive free cash flow guidance.

Alstom reported record order intake of EUR 27.6 billion (book/bill 1.4) for fiscal 2025/26, lifting the backlog to EUR 104.4 billion. Rolling stock issues cut car output by about 100 units and contributed to a 110‑basis‑point negative impact on gross margin, which came in at 13.3%.

Alstom issued a profit warning on April 16, with shares falling by 30%, withdrawing its three-year cumulative EUR 1.5 billion free cash flow target and its 8%–10% adjusted EBIT margin ambition for fiscal 2026-27, citing prolonged rolling stock ramp-up delays and execution headwinds.

Alstom offers a comprehensive portfolio, including rolling stock (51% of revenue), services (24%), and signaling and systems (25%), setting it apart from competitors.

Sales grew 7.9% organically to EUR 9.1 billion, with all segments contributing and signaling up 17%. Adjusted EBIT rose 13% to EUR 580 million, lifting margins to 6.4%. Orders reached EUR 10.5 billion (1.2 times book/bill), supported by major US wins, and solid Europe and Asia-Pacific momentum.

Alstom offers a comprehensive portfolio, including rolling stock (51% of revenue), services (24%), and signaling and systems (25%), setting it apart from competitors.

Alstom reported EUR 4.5 billion in first-quarter sales, up 7.2% organically, with solid momentum in France and Germany. Orders rose 12% to EUR 4.1 billion, though the book/bill ratio was 0.9 times. FCF burn is expected to remain steep in the first half due to ramp-up mix and light down payments.

Alstom offers a comprehensive portfolio, including rolling stock (51% of revenue), services (24%), and signaling and systems (25%), setting it apart from competitors.

Narrow-moat Alstom delivered a resilient set of results for fiscal-year 2024-25, supported by robust demand in services and signalling and stable commercial momentum, despite persistent execution challenges in rolling stock. Organic revenue growth reached 6.9% year to date, above the approximately 5% full-year target, driven by double-digit services growth and strong systems performance, notably in Mexico. The book-to-bill stood at 1.1 times, with backlog stable at EUR 95 billion. Services and signalling accounted for 58% of order intake, confirming the pivot toward higher-margin, less capital-intensive activities.

Narrow-moat Alstom reported positive first-half results with improved backlog quality and completed its capital increase. We are leaving our fair value estimate unchanged.

Narrow-moat Alstom has launched a share capital increase of approximately EUR 1 billion with preferential subscription rights, as part of its final step in a EUR 2 billion deleveraging plan. This initiative allows existing shareholders to subscribe to new shares at a ratio of one new share for every five existing shares, priced at EUR 13 per new share, a 29% discount to the current market value. Consequently, we are reducing Alstom’s fair value estimate to EUR 20.90 from EUR 21.70 to account for the higher-than-expected discount.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors.

Narrow-moat Alstom reported a negative full-year free cash flow of EUR 557 million after reporting negative EUR 1.15 billion cash flow in the first half of the year, resulting in a net debt of EUR 3 billion as of March 2024, up from EUR 2.13 billion the year before. However, we have increased our fair value estimate from EUR 17 to EUR 21.7 as the firm provided updates on its deleveraging plan. Our previous fair value of EUR 17 included sales of assets for EUR 500 million and EUR 1.5 billion of equity issuance at EUR 12 per share, with no hybrid bonds. We increase our fair value to EUR 21.7 as we incorporate management’s deleveraging plan, with the equity issuance expected at EUR 16 per share and the sale of the US signaling business viewed as value-neutral.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors. With developments in rail infrastructure in emerging countries, advances in eco-friendly transit, and automation in railways, Alstom's growth potential is significant.

Alstom's recent financial results met expectations but were overshadowed by the need for potential capital raising and dividend suspension. Previously, the company issued a cash flow warning yet ruled out a capital increase. That changed following Moody’s recent downgrade to Alstom’s credit outlook, shifting management focus in reducing net debt to maintain its investment-grade rating. Alstom must lower its gross debt-to-core profits ratio to 3.7 from approximately 4.5 in the next 12 months and reduce net debt by EUR 2 billion by March 2025. These targets are to be achieved through asset sales, quasi-equity issuance, and potentially a capital increase.

Alstom offers a comprehensive portfolio, including rolling stock (53% of revenue), services (23%), and signaling and systems (24%), setting it apart from competitors. With developments in rail infrastructure in emerging countries, advances in eco-friendly transit, and automation in railways, Alstom's growth potential is significant.