Alstom Secures €270 Million Order for 25 Trains in Australia
Alstom has obtained a €270 million order from the Victorian State Government following the exercise of a contractual option for 25 additional Xtrapolis 2.0 trains. This option exercise brings the total number of trains under manufacturing at the rail manufacturer's Australian sites to 50.
The contract signed on August 4, 2026 concerns the manufacturing of 25 additional Xtrapolis 2.0 trains at Alstom's sites located in Victoria. These trains are added to the 25 trains currently being delivered under the initial contract awarded in 2021. The six-car electric vehicle has a capacity of 1,225 passengers and incorporates accessibility features including 20 reserved spaces for wheelchairs, areas for strollers and bicycles, semi-automatic ramps and hearing aid technologies.
A requirement of 60% local content is imposed for the manufacturing of these trains, stimulating the development of the railway supply chain in Victoria. Alstom claims to be the only company offering train manufacturing capacity in Australia.
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The exercise of this option is expected to preserve hundreds of skilled manufacturing jobs across both the metropolitan area and regional areas of the State. The Xtrapolis 2.0 was put into service in May 2026. Additional units will progressively enter circulation to replace an aging fleet dating from the early 1980s, with no specific deployment schedule specified in the press release.
The train results from a partnership with the Victorian State Department of Transport and Planning and derives from the manufacturer's Adessia platform. Alstom states that its Adessia suburban transport solutions serve 60 railway networks worldwide and carry more than 20 million passengers daily.
Strengthening Presence on the Oceania Continent
This order comes one week after the first of 100 class G trams entered service in Melbourne, marking the start of deliveries for the €700 million contract awarded in 2022. It is part of Alstom's local assembly strategy in Australia, with the manufacturer also finalizing the financing of the NofiT light rail project in Israel at the end of July, valued at approximately €750 million for the group.
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Context
Period
Period: S1 2027
Key reported figures
Revenue: 9 300 millions d'euros
Quarterly revenue: 9 300 millions d'euros
Revenue growth: 3 %
Free cash flow: -1 248 millions d'euros
1 100 millions d'euros
Guidance from the release
« Marge d'exploitation ajustée d'environ 1 % pour l'exercice fiscal 2026/27, contre 6,5 % annoncé précédemment » ; « Cash-flow libre de (1,5) milliard d'euros pour l'exercice fiscal 2026/27, contre une génération de cash-flow libre positive précédemment »
Risks mentioned
Difficultés persistantes d'exécution de Coradia Max et allongement du calendrier d'homologation
Décalage de paiements de jalons sur exercices futurs et impact sur cash-flow 2026/27
Risques opérationnels identifiés sur autres projets allemands nécessitant rationalisation
Opportunities identified
Demande solide pour les solutions ferroviaires et portefeuille d'opportunités robuste
Initiatives opérationnelles et plan de désendettement en cours pour renforcer le bilan
Capital Markets Day T2 2027 présentant la trajectoire financière à moyen terme et marges vers 8-10%
Outlook / guidance
Expected revenue: 19 746 millions d'euros
Management commentary: « Croissance organique du chiffre d'affaires comprise entre 2 % et 4 % au cours de l'exercice fiscal 2026/27, contre environ 5 % précédemment »
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.