Alstom Reports Increased Sales and Strong Order Intake
Strong commercial momentum, driven by Rolling Stock and North America, lifted Alstom's sales by 3.2% in the first half of fiscal year 2025/26. The company also upgraded its full-year sales outlook.
Rail technology firm Alstom has reported a solid performance for the first half of its fiscal year 2025/26, with group sales reaching €9.06 billion, an increase of 3.2% (7.9% organically). The growth was primarily fueled by strong commercial activity in the Rolling Stock division and significant progress in the North American market, including a notable contract for New York's subway system.
The company's order backlog continued to expand, achieving a book-to-bill ratio of 1.2 for the group and 1.4 for Rolling Stock. Sales in Europe saw a notable increase of 8.5%, supported by developments in both Rolling Stock and Signalling segments.
Adjusted operating income (EBIT) rose by 13% to €580 million, with the margin improving by 50 basis points to 6.4%. Funds from operations (FFO) stood at €411 million. Free cash flow (FCF) was €(740) million, which the company stated reflects expected working capital seasonality.
Alstom has revised its full-year outlook upwards, now expecting organic sales growth to exceed 5%, compared to the previous forecast of 3-5%. The company anticipates its order book will continue to outpace sales and maintains its projection for an adjusted EBIT margin of around 7% for the fiscal year.