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Last updated : 06/11/2026 - 14h01
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Alstom Secures €300M to Modernize Two Railway Corridors in Egypt

Leading a consortium, Alstom signed four contracts on Thursday with the Egyptian National Railways (ENR) to modernize Egypt’s strategic railway corridors. The total value of the contracts is €690M, with Alstom's share approximately €300M.


Alstom Secures €300M to Modernize Two Railway Corridors in Egypt

Two Key Corridors and Digital Technologies

The four contracts focus on the modernization of the October 6-Alexandria corridor (valued at €550M, with €240M for Alstom) and the Belbes-10th of Ramadan line, known as B10 (valued at approximately €140M, with €60M for Alstom). As the consortium leader, Alstom will handle the engineering, design, supply, testing, and commissioning of new digital railway systems on both corridors, including level 1 ETCS signaling, modern telecommunications, enhanced electrical infrastructure, and operation control capabilities. Rowad Modern Engineering and Concrete Plus, partners in the consortium, will take care of the construction of technical buildings, mechanical, electrical, and plumbing works, as well as all the modernization works of civil infrastructure and tracks.

Reduced Travel Times and Enhanced Logistic Connectivity

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On the October 6-Alexandria corridor, improvements are expected to reduce travel time by nearly 80 minutes across the entire route, while increasing capacity and operational reliability. The B10 project will enhance connectivity to one of Egypt’s largest industrial hubs, thus boosting the efficiency of freight transport. These projects are part of the 'Egypt Vision 2030' by enhancing national logistics and improving connectivity between new dry ports, industrial zones, and major seaports. They will help reduce supply chain bottlenecks and stimulate national and regional trade flows.

Local Content and Alstom’s Industrial Presence

The projects feature a local content rate of about 50%, supporting the development of the national industry through the skills of Egyptian engineers and local sourcing. Alstom has been present in Egypt for over 40 years and employs about 800 people locally. The group has developed operational and engineering capabilities, including centers of excellence in signaling, power supply, and depot equipment. According to Martin Vaujour, President of the Africa, Middle East and Central Asia region at Alstom: 'These contracts demonstrate our ability to successfully manage complex and large-scale signaling programs, as well as our commitment to being a long-term partner for the most critical mobility infrastructures.'



Sector Machines et équipements industriels › Machines / équipements industriels


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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.

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