Alstom (ALO) H1 24/25 earnings summary

Executive summary

• Orders received rose 30% year-over-year to €10.95 billion, driven by strong commercial wins in Europe, notably the €3.6 billion S-Bahn Cologne contract, with commercial momentum and operational improvements supporting full-year guidance confirmation.

• Sales reached €8.78 billion, up 4% year-over-year (5.6% organic), with growth across all regions, especially in Americas and Asia/Pacific.

• Backlog increased to €94.4 billion, providing robust future sales visibility, with a book-to-bill ratio of 1.25.

• Adjusted EBIT increased 18% to €515 million (margin 5.9%), and adjusted net profit rose to €224 million.

• Free cash flow improved significantly to €(138) million from €(1,119) million year-over-year, aided by favorable downpayments and working capital management.

Financial highlights

• Orders: €10.95 billion (+30% year-over-year); Sales: €8.78 billion (+4% actual, +5.6% organic); Adjusted EBIT: €515 million (5.9% margin); Adjusted net profit: €224 million.

• Free cash flow: €(138) million, a marked improvement from prior year.

• Net financial debt reduced to €927 million from €2,994 million after executing a €2 billion deleveraging plan.

• Equity increased to €10,503 million from €8,778 million at March 2024.

• Gross margin on backlog at 17.8%; SG&A over sales reduced to 6.0%.

Outlook and guidance

• FY 2024/25 guidance: book-to-bill above 1, organic sales growth around 5%, aEBIT margin around 6.5%, free cash flow €300–500 million.

• Mid- to long-term ambitions confirmed, with supportive market demand and end of Bombardier Transportation integration.

• Assumptions include stable FX, market environment, and inflation lower than 2022/23.