Alstom Reports Steady First-Half Financial Performance in 2025/26

Alstom has reported its results for the first half of the 2025/26 financial year, outlining growth in sales, increased profitability and continued commercial activity across several key markets.

The company’s order intake, sales mix and regional performance point to a stable first six months with expectations of firmer progress in the remainder of the year.

The Group recorded orders worth 10.5 billion EUR in the first half, compared with 10.9 billion EUR in the same period of 2024/25. The slight reduction reflects the timing of several contracts already announced but not yet booked. The book-to-bill ratio stood at 1.2 for the Group and 1.4 for Rolling Stock.

Performance by Region

Europe generated 5.2 billion EUR in orders, less than the 8.5 billion EUR recorded previously, influenced by last year’s concentration of large awards in France, Germany and Italy.

The Americas saw a marked rise to 3.5 billion EUR, driven by two major US contracts: a 2.3 billion EUR order for 316 commuter rail cars for LIRR and Metro-North, and a 1 billion EUR order from NJ TRANSIT for additional Multilevel III cars and ALP-45 locomotives.

Asia-Pacific orders increased to 1.5 billion EUR, including a major battery-train contract in New Zealand and multiple orders in India and Taiwan.

Africa, the Middle East and Central Asia accounted for 228 million EUR.

Sales across Product Lines

Group sales reached 9.1 billion EUR, a 3% increase on a reported basis and 8% on an organic basis. Growth was seen across all business areas:

• Rolling Stock sales rose to 4.7 billion EUR, supported by activity in France, the US and Italy
• Services generated 2.3 billion EUR, reflecting activity in the UK, US, Germany, Italy and Australia
• Signalling sales grew to 1.3 billion EUR, with progress in France, Italy and Germany
• Systems reached 823 million EUR, helped by projects in Brazil and Taiwan

Innovation and Development

Research and development costs totalled 300 million EUR, equivalent to 3.3% of sales. Alstom continued development of its high-speed Avelia platforms, battery and dual-mode regional trains under the Adessia and Coradia Stream families, and digital maintenance systems including HealthHub++.

Work also progressed on autonomous and remote-operation technologies, signalling architecture standardisation, and AI-based maintenance and safety tools.

Profitability and Financial Position

Adjusted EBIT increased by 13% year-on-year to 580 million EUR, with a margin of 6.4%, compared with 5.9% in the previous year. EBIT before PPA rose to 443 million EUR. The Group reported a net profit of 220 million EUR, up from 53 million EUR in the first half of 2024/25.

Net financial expenses fell to 75 million EUR, reflecting lower borrowing costs. The effective tax rate before PPA was 28%.

Free cash flow was negative at (740) million EUR, largely due to working-capital movements, including inventory build-up ahead of higher planned production in the second half. Funds From Operations improved to 411 million EUR, compared with 282 million EUR the previous year.

Net debt increased to 1.4 billion EUR, from 434 million EUR in March 2025. Liquidity remained supported by 1.7 billion EUR in cash and undrawn revolving credit facilities totalling 4.25 billion EUR.

Sustainability and Corporate Responsibility

Alstom reported continued progress on environmental and social commitments. Renewable electricity usage reached 87% of operational consumption, with a target of 100% by the end of 2025. The Group also entered a partnership to source low-carbon stainless steel for future metro trains.

Several external ESG ratings improved during the period, including an upgraded MSCI rating to AAA and a higher ECOVADIS score of 93/100.

Outlook

For 2025/26, Alstom expects:

• A Group and Rolling Stock book-to-bill ratio above 1
• Organic sales growth above 5% (upgraded from 3–5%)
• Adjusted EBIT margin around 7%
• Free cash flow between 200 million EUR and 400 million EUR

The Group continues to target at least 1.5 billion EUR in free cash flow over the 2024/25–2026/27 period, despite expected working-capital pressures.