Alstom (ALO) H2 25/26 earnings summary

Executive summary

• Achieved record order intake of €27.6 billion, driving backlog to €104.4 billion and a book-to-bill ratio of 1.4, with strong commercial momentum across all regions and product lines.

• Organic sales grew 7.2% year-over-year to €19.2 billion, with robust performance in Europe and new contract wins globally.

• Adjusted EBIT was stable at €1.2 billion, margin at 6.1% (down 30bps), impacted by execution challenges in Rolling Stock.

• Free Cash Flow reached €336 million, in line with guidance, but below prior expectations due to execution issues and contract working capital headwinds.

• Net financial debt reduced to €404 million, supported by strong liquidity and operational improvements.

Financial highlights

• Sales rose to €19.2 billion, up 4% reported and 7.2% organic year-over-year.

• Adjusted EBIT margin was 6.1%, down 30bps from the prior year, with gross margin at 13.3% (down 80bps) due to higher costs at completion on Rolling Stock projects.

• Adjusted net profit increased 12% to €559 million.

• Net profit (Group share) more than doubled to €324 million.

• Net financial debt reduced to €404 million, with strong liquidity and undrawn credit facilities.

Outlook and guidance

• FY 2026/27 targets: book-to-bill ratio above 1, organic sales growth around 5%, car production of 4,400–4,500, adjusted EBIT margin around 6.5%, and positive Free Cash Flow.

• H1 Free Cash Flow expected at €(1.5) billion due to seasonality, with strong recovery in H2.

• Medium-term ambition to progressively improve adjusted EBIT margin toward 8–10% and enhance cash generation.

• Capital expenditure to increase to support new platforms and Services growth.