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

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

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

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(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.)