Alstom posts results in line with expectations, analysts remain bullish
Alstom (+2.5% at 17.25 euros) is outperforming within the SBF 120 following the release of its annual results for the 2025-2026 fiscal year. The period was marked by record commercial performance, though tempered by execution challenges on certain rolling stock contracts.
Over the full year, the group reported a 4% increase in revenue to 19.171 billion euros, while adjusted EBIT edged down 1% to 1.168 billion euros, bringing the adjusted operating margin from 6.4% to 6.1%. This margin was weighed down by adverse currency effects, a perimeter effect related to the divestment of the North American signaling business, R&D investments, and project execution.
Finally, net income (group share) more than doubled, rising from 149 million to 324 million euros.
Regarding commercial performance, order intake for the 2025-2026 fiscal year surged 39% to 27.628 billion euros, driving the order backlog to 104.4 billion euros.
In its commentary, Jefferies noted that 'results are in line with preliminary figures, despite management comments highlighting that car production was weaker in the fourth quarter'.
Oddo BHF echoed this sentiment. The analyst noted that 'the group mentioned a pipeline of opportunities worth 210 billion euros over three years, indicating little impact from the crisis in the Middle East'.
Targets confirmed
For the 2026-2027 fiscal year, Alstom is targeting organic revenue growth of approximately 5%, compared to 7% in 2025-2026, car production between 4,400 and 4,500 units (up from 4,284), an adjusted operating margin of around 6.5%, and positive free cash flow generation.
For its part, Jefferies revealed that 'the consensus is modeling organic sales growth of 5.2%, an adjusted EBIT margin of 6.5%, and cash flow of approximately 76 million euros'. The U.S. investment bank maintains a buy rating with a price target of 25 euros. Oddo BHF also maintains an outperform rating with a target of 25 euros.
Alstom is one of the world leading manufacturers of infrastructures for rail transport sector. Net sales break down by family of products and services as follows:
- rolling stocks (43.1%): trains, tramways and locomotives;
- railway services (38.4%): maintenance, modernization, management of spare parts, support and technical assistance services;
- signaling, information and control systems (9.4%);
- railway infrastructures (9.1%): infrastructures for the track laying, lines electrical power systems, electromechanical equipment, telecommunication devices and traveler information in station, terminals for automatic purchase of tickets, access to escalators, lifts for disabled, automatic landing doors on platforms, ventilation, air conditioning and lighting systems).
Net sales are distributed geographically as follows: France (14.3%), Europe (45.1%), Americas (16.3%), Asia/Pacific (11.7%), and Middle East/ Africa/ Central Asia (12.6%).
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