Alstom H1 adjusted EBIT margin falls on project delays; cuts FY 2026 outlook 

By Reuters News


Overview

  • France-based rail equipment maker's preliminary H1 sales rose 3% yr/yr to €9.3 bln

  • Adjusted EBIT margin fell to around -4%, hit by execution issues and project delays

  • Company cut FY 2026/27 guidance for sales growth, EBIT margin, and free cash flow


Outlook

  • Alstom lowers FY 2026/27 car production forecast to around 4,000 from 4,400-4,500 previously

  • Company now sees FY 2026/27 organic sales growth at low- to mid-single digit, down from around 5%

  • Alstom cuts FY 2026/27 adjusted EBIT margin forecast to around 1% from 6.5% previously


Result Drivers

  • CORADIA MAX ISSUES - Production and profitability were hit by execution challenges and extended homologation timelines for the Coradia Max platform

  • GERMANY PROJECTS - Gross margin adjustments and delays on projects executed for, and from, Germany weighed on results

  • PROJECT REVIEWS - Strengthened project reviews identified further execution risks and additional work, affecting margins and timelines


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Sales

EUR 9.30 bln

H1 Free Cash Flow

-EUR 1.25 bln

H1 Orders

EUR 11 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

  • Wall Street's median 12-month price target for Alstom SA is €19.50, about 23.3% above its October 30 closing price of €15.81

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 30 - Earnings give European auto stocks respite as China reshapes the industry

  • Oct 30 - Fugro third-quarter core profit slumps on pricing pressure, Middle East costs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk