Alstom (ALO) Q1 24/25 TU earnings summary

Executive summary

• Q1 2024/25 sales reached €4.4 billion, up 5.1% year-over-year with organic growth of 5.3%.

• Orders for Q1 totaled €3.6 billion, with backlog stable at €92 billion and book-to-bill at 0.83; Europe led order intake, notably Germany, the UK, and Italy.

• Major contract wins included Hamburg Metro, Polo Logistica FS in Italy, and Elizabeth Line in the UK.

• Deleveraging plan executed via €1 billion rights issue, €750 million hybrid bond, and asset disposals, supporting a stable credit outlook.

• Commercial momentum remains robust, with order intake expected to accelerate in Q2 and strong operational focus on Paris 2024 Olympics.

Financial highlights

• Q1 sales: €4,389 million; Rolling Stock €2,338 million (+2%), Services €1,073 million (+12%), Signalling €637 million (+6%), Systems €341 million (+4%).

• Organic sales growth of 5.3% year-over-year; Services segment up 13.1%.

• Q1 order intake: €3.6 billion; backlog at €92 billion.

• Net proceeds from deleveraging transactions: €2.4 billion, with €1.7 billion already received.

• Book-to-bill ratio at 0.83 for Q1 2024/25.

Outlook and guidance

• FY 2024/25 guidance confirmed: book-to-bill above one, organic sales growth around 5%, adjusted EBIT margin around 6.5%.

• Margin improvement expected to be more pronounced in H2 due to seasonality and cost-saving initiatives.

• Free cash flow for the year guided at €300–500 million; H1 expected to be negative due to seasonality.

• No change to midterm ambitions or guidance framework; Bombardier Transportation integration program to end in FY 2024/25.