Alstom (ALO) H1 24/25 earnings summary

Executive summary

• Orders reached €10.95 billion in H1 2024/25, up 30% year-over-year, with strong commercial momentum and major wins in Europe, notably a €3.6 billion S-Bahn Cologne contract.

• Sales grew 5.6% organically to €8.78 billion, with a book-to-bill ratio of 1.25 and backlog at €94.4 billion, providing robust future sales visibility.

• Adjusted EBIT increased 18% to €515 million (margin 5.9%), and adjusted net profit rose to €224 million.

• Free cash flow improved to €(138) million from €(1,119) million year-over-year, outperforming guidance and benefiting from downpayments and working capital management.

• Integration process is nearing completion, with IT systems unified by January 2025 and all sites to use unified tools and processes by year-end.

Financial highlights

• Orders: €10.95 billion (+30% organic), driven by major European contracts; backlog at €94.4 billion.

• Sales: €8.78 billion (+5.6% organic), with growth in Services (+12%) and Systems (+14%).

• Adjusted EBIT: €515 million (margin 5.9%, up 70bps year-over-year).

• Adjusted net profit: €224 million; net income (group share): €53 million.

• Free cash flow: €(138) million, a marked improvement from prior year.

• Net financial debt reduced to €927 million from €2,994 million after a €2 billion deleveraging plan.

Outlook and guidance

• FY 2024/25 guidance confirmed: book-to-bill above 1, organic sales growth around 5%, adjusted EBIT margin around 6.5%, and free cash flow between €300–500 million.

• Mid- to long-term ambitions unchanged, with supportive market demand and end of Bombardier Transportation integration.