Alstom: Orders Up by 39% to €27.6 Billion, But Margin Falls to 6.1%
Alstom announced on Wednesday its 2025/26 results, marked by strong commercial momentum with €27.6 billion in orders received, a 39% increase. However, the execution of some major train contracts is impacting profitability, with an adjusted operating margin falling to 6.1% from 6.4% a year earlier. The company is relying on a rigorous operational plan to restore profitability to 8-10% in the medium term.
Record Increase in Orders, Order Book at 104 Billion Euros
The group recorded order intake of €27.6 billion for the fiscal year ended March 31, 2026, up 39% from €19.8 billion the previous year. This performance is driven by commercial successes in Europe (€15.6 billion), the Americas (€7.9 billion), and Asia-Pacific (€2.9 billion), mainly covering rolling stock and systems. The order-to-revenue ratio reached 1.4, generating an order book of €104.4 billion as of March 31, 2026, up 10% in reported data from a year earlier. The gross margin of the order book stands at 18.0%, an improvement of 20 basis points. Major contracts in Europe include 30 Avelia Horizon trains for SNCF (€1.4 billion), an additional 96 RER NG trainsets (€1.7 billion), 42 Coradia Max trains for Poland (€1.6 billion), and 153 Adessia Stream trains for Portugal (€1.03 billion). In the United States, Alstom won a €2.0 billion contract for 316 commuter cars for the Long Island Rail Road and Metro-North Railroad.
Revenue Up but Profitability Lags
Revenue amounted to €19.171 billion, up 3.7% in reported data and 7.2% on an organic basis. In Europe, sales reached €11.6 billion (up 11%), driven by the execution of major ongoing contracts. In the Americas, revenue fell to €3.2 billion (down 12% in reported data), notably due to a slowdown in projects in Latin America. The adjusted operating result is nearly stable at €1,168 million compared to €1,177 million in the previous fiscal year. However, the adjusted operating margin has fallen to 6.1% from 6.4% a year earlier, hampered by lower production and the execution of some rolling stock projects that slowed the anticipated margin increase. Net income (group share) increased to €324 million from €149 million the previous year. Free cash flow amounted to €336 million, in line with targets, despite a consumption of €171 million in working capital requirements linked to the ramp-up of major rolling stock platforms.
Alstom Targets a 6.5% Margin in 2026/27 and Will Present Its Operational Plan in Early 2027
For the 2026/27 fiscal year, the group confirms its guidance announced on April 16: an adjusted operating margin of about 6.5%, organic revenue growth of about 5%, production of 4,400 to 4,500 vehicles, and generation of positive free cash flow. Alstom anticipates a free cash flow consumption of about €1.5 billion in the first half of 2026/27 due to seasonality. Management has announced that priority actions for 2026/27 aim to strengthen execution, progress towards an optimized cost base, and accelerate savings on purchases. Martin Sion, CEO, stated that improving the quality of execution is a priority, particularly through more rigorous daily operational management and better coordination between engineering, supply chain, and production. Alstom will present a complete operational plan and its medium-term financial ambitions at a Capital Markets Day in early 2027. The group aims for a gradual improvement of the adjusted operating margin towards a level of 8% to 10% in the long term, supported by the transformation of the order book gross margin (18.0%) into operating profitability and improved cash generation.
