Alstom (ALO) H1 25/26 earnings summary

Executive summary

• Orders reached €10.5 billion in H1, with strong commercial momentum, especially in North America and Rolling Stock, and a group book-to-bill ratio of 1.2x, in line with guidance.

• Sales were €9.1 billion, up 7.9% organically year-over-year, with all product lines and regions contributing to growth.

• Adjusted EBIT rose 13% to €580 million, with margin improving to 6.4% from 5.9% last year.

• Net profit (group share) rose to €220 million from €53 million year-over-year, driven by improved operational performance.

• Major operational milestones achieved in North America and France, including new train rollouts and facility investments.

Financial highlights

• Backlog increased to €96.1 billion, up from €95 billion at March-end, providing strong visibility for future sales.

• Gross margin was €1.2 billion (13.6% of sales), with gross margin in backlog at 18%–18.3%, showing steady improvement.

• Adjusted net profit rose to €338 million from €224 million year-over-year.

• Free cash flow was negative at €(740) million, reflecting expected seasonality and inventory build-up for higher H2 production.

• Net financial debt increased to €1.4 billion as of September 2025, mainly due to free cash flow outflow and currency effects.

Outlook and guidance

• Organic sales growth outlook for FY 2025/26 upgraded to above 5% (previously 3–5%).

• Adjusted EBIT margin guidance confirmed at around 7%.

• Free cash flow generation expected within €200–400 million range.

• Book-to-bill ratio expected above 1x for the full year, both group-wide and for Rolling Stock.

• Medium-term ambition for at least €1.5 billion free cash flow over three years remains unchanged.