Alstom (ALO) H1 25/26 earnings summary

Executive summary

• Orders reached €10.5 billion in H1, with strong commercial momentum, especially in North America and the Americas, and a group book-to-bill ratio of 1.2, supported by robust demand across all regions and product lines.

• Sales were €9.1 billion, up 3% reported and 8% organic year-over-year, with all product lines and regions contributing to growth.

• Adjusted EBIT rose 13% to €580 million, with margin improving to 6.4% from 5.9% last year, reflecting cost efficiencies and favorable volume/mix.

• Net profit (group share) rose to €220 million from €53 million year-over-year, driven by improved operational performance.

• Free cash flow was negative €740 million, reflecting expected seasonality and inventory build-up for higher H2 production.

Financial highlights

• Backlog increased to €96.1 billion, up from €95 billion at March-end, providing strong sales visibility despite negative currency effects.

• Adjusted net profit rose to €338 million from €224 million year-over-year.

• Net financial debt increased to €1,399 million from €434 million at March-end, mainly due to negative free cash flow and currency effects.

• Cash and cash equivalents at €1.7 billion–€2.3 billion at September-end, with strong liquidity supported by undrawn revolving credit facilities.

• Gross margin on backlog was 18.0% as of September 2025, showing steady improvement.

Outlook and guidance

• Organic sales growth outlook for FY 2025/26 upgraded to above 5% (previously 3–5%).

• Adjusted EBIT margin guidance confirmed at around 7%.

• Free cash flow generation expected within €200–400 million range.

• Book-to-bill ratio expected above 1x for the full year, both group-wide and for Rolling Stock.

• Medium-term ambition to deliver at least €1.5 billion in free cash flow over FY 2024/25–2026/27.