Alstom S.A.

Alstom recorded EUR 27.6 billion of orders in fiscal year 2025-26, a book-to-bill of 1.4. The group produced 4,284 cars, down 2% year over year. Sales were EUR 19.2 billion, up 4% year over year and up 7% organically. Adjusted EBIT margin landed at around 6%, with the company saying this was below guidance and last year’s level at constant currency and scope. Free cash flow was around EUR 330 million, and financial net debt was around EUR 400 million at the end of March 2026. For fiscal 2026-27, management guided for book-to-bill above 1, organic sales growth around 5%, adjusted EBIT margin around 6.5%, and positive free cash flow. They said the EBIT improvement should come from gross margin rebounding toward fiscal 2023-24 levels, with gross margin in backlog at 18%.

Martin Sion framed the quarter as a mandate to fix execution rather than celebrate reported growth. He said the group’s planning discipline is not strong enough, particularly across development, industrialization, and manufacturing, and that rolling stock is the key area needing operational change. He emphasized tighter day-to-day execution, stronger coordination, and a broader review of product and commercial strategy, industrial footprint, and portfolio, while noting the company has capable teams and that improvements can start quickly.

Bernard Delpit said the year delivered EUR 27.6 billion of orders, EUR 19.2 billion of sales, around 6% adjusted EBIT margin, and around EUR 330 million of free cash flow, but results were hurt by slower-than-expected execution on large rolling-stock projects, late-stage project headwinds, and higher R&D. He noted gross margin in the backlog is 18% and said next year’s margin improvement to around 6.5% depends on gross-margin recovery, while CapEx, trade working capital, and lower margin than previously anticipated will weigh on cash. He described liquidity as solid, with EUR 2.3 billion gross cash, EUR 2.5 billion and EUR 1.75 billion revolving facilities, and a EUR 2.5 billion commercial paper program, and said net debt should be stable or only slightly higher next year.

Analysts pressed management on whether more project write-downs or adjustments could still come, how Alstom could generate positive free cash flow after a first half expected to burn around EUR 1.5 billion, and whether the balance sheet can handle the seasonality. Martin said the problems are not just one or two projects but a broader execution issue in rolling stock, especially at ramp-up and homologation stages, though serial production is working efficiently. Delpit said the H1 cash burn is offset by a strong H2 and that the balance sheet is robust enough, with no haircut on contract assets, while also saying the company keeps an open dialogue with rating agencies.