Alstom cuts fiscal outlook amid European project execution hurdles
Train manufacturer Alstom has downgraded its fiscal 2026/27 guidance following operational delays, primarily centered on its Coradia Max platform.
Alstom reported a difficult first half for fiscal year 2026/27, characterized by industrialization issues and delayed homologation schedules, particularly within its German operations. These disruptions pushed the group's adjusted operating margin to approximately -4 percent for the period.
The company has adjusted its full-year expectations in response. Annual organic revenue growth is now projected between 2 percent and 4 percent, a downward revision from the previously stated 5 percent. Furthermore, production output has been scaled back, with the company now expecting to deliver approximately 4,000 railcars, down from an initial target of 4,400 to 4,500 units.
Financial strain is also evident in the group's free cash flow, which is now expected to reach -1.5 billion euros for the fiscal year. In light of these results, management has initiated a recovery plan focused on operational efficiency and debt reduction to stabilize performance in the second half of the year.