On the occasion of its preliminary results for the 2025/26 fiscal year, the group displayed unparalleled commercial strength but conceded persistent difficulties in converting contracts into profits.

Unprecedented commercial success, but...

The group recorded record order intake amounting to 27.6 billion euros, a 39% jump year-on-year. This performance brings the book-to-bill ratio to a solid 1.4. Revenue, for its part, grew by 7% on an organic basis to reach 19.2 billion euros, supported by a buoyant global rail market.

It is on the profitability front where the shoe pinches. Alstom lowered its adjusted operating margin guidance to approximately 6%, compared to the 7% initially hoped for. The new CEO, Martin Sion, pointed to a "longer-than-expected ramp-up" and execution constraints on certain major rolling stock projects. This is evidenced by the decline in production (4,284 cars compared to 4,383 the previous year), a sign that Alstom's factories are running slower than its contracts require.

Cash generation under scrutiny

Free cash flow came in at approximately 330 million euros, saved by customer down payments linked to record orders, but penalized by the slow pace of certain projects which weighed on working capital requirements. As a direct consequence of these operational tensions, Alstom has been forced to abandon its medium-term targets. The objective of a cumulative cash flow of 1.5 billion euros over three years is no longer maintained, and the target of an operating margin of 8 to 10% will not be reached by 2026/27.

2026/27: The year of "stabilization"

For the upcoming fiscal year, priority will be given to strengthening fundamentals. Alstom forecasts organic revenue growth of approximately 5%, a recovery in the operating margin to 6.5%, and positive free cash flow, despite a first half that is expected to consume approximately 1.5 billion euros in cash due to seasonality.

Martin Sion promised the presentation of an operational transformation plan during the year to restore sustainably profitable growth. Final audited results will be published on May 13.