Alstom: Revenue Up 4.9% in Q1, but Orders Drop by 37%
On July 22, 2026, Alstom reported a 4.9% increase in revenue for the first quarter of fiscal year 2026/27, reaching EUR 4,734 million. However, order intake contracted by 37%, dropping from EUR 4,075 million to EUR 2,560 million compared to the same period last year. Despite several operational milestones being reached (certification of the TGV-M, commissioning of the Egyptian monorail), the order-to-revenue ratio was at 0.5x, significantly lower than the 0.9x level seen a year earlier.
Revenue Up, Significant Decline in Orders
The group's revenue amounted to EUR 4,734 million in the first quarter, up 4.8% in organic growth. This increase was driven by the Services segment, which saw a 9% rise in organic terms to EUR 1,178 million, benefiting from the ramp-up of projects in the UK and the USA. The Rolling Stock segment also grew by 6% in organic terms to EUR 2,538 million, fueled by steady activity in France and accelerated projects in Germany and Bulgaria. On the other hand, order intake fell to EUR 2,560 million from EUR 4,075 million a year earlier, reflecting a high comparison base but also a slowdown in commercial dynamics over the quarter. This contraction is reflected by a book-to-bill ratio (orders/revenue) of 0.5x, indicating that the group is only replenishing its order book at half speed. For comparison, this ratio was at 0.9x in the first quarter of 2025/26.
Reorientation Towards Africa and the Middle East, Stable Order Book
The geography of orders reveals a partial reorientation. The Africa, Middle East, and Central Asia (AMEAC) region now accounts for 42% of order intake, up from 0% a year earlier, mainly thanks to an order for locomotives worth approximately EUR 800 million signed in the AMEAC region in rolling stock, as well as four signaling contracts with the Egyptian railways for the modernization of strategic corridors and the deployment of the ETCS system. Europe, traditionally the core of the portfolio, has fallen to 42% of orders from 86% previously. The global order book stood at EUR 102.8 billion as of June 30, 2026. Alstom anticipates an order-to-revenue ratio above 1x for the full fiscal year 2026/27, suggesting an expected commercial acceleration in the following quarters. The group also confirms its outlook: organic revenue growth of about 5%, production between 4,400 and 4,500 vehicles, and an expected adjusted operating margin of around 6.5%.
Operational Milestones Progressing, Order Book Margin to Transform
Operationally, Alstom has achieved several milestones. In France, the European Railway Agency (ERA) has granted certification to the TGV-M, which begins a pre-commercial operation phase with SNCF Voyageurs before its commercial launch in September. In the United States, NJ Transit received the first Multilevel III car. In Australia, the first X'trapolis 2.0 train has entered commercial service in Melbourne. In Egypt, the East of Nile monorail has commenced commercial operations on the first section. Alstom has a gross margin of 18.0% on the order book as of the end of March 2026, but aims for a gradual improvement in the adjusted operating margin towards 8% to 10% over the medium term, compared to 6.5% expected for the current fiscal year. The group also displays an ambition for positive free cash flow generation, despite a first-half seasonality leading to an estimated consumption of about EUR 1.5 billion. These priorities reflect the execution challenges encountered during the previous fiscal year (2025/26), where profitability fell below expectations.
