Alstom (ALO) H2 24/25 earnings summary

Executive summary

• Orders reached €19.8 billion with strong Q4 momentum and a book-to-bill ratio of 1.1, meeting guidance and marking record-high Services and Signalling orders.

• Sales totaled €18.5 billion, representing 6.6% organic growth and 4.9% year-over-year increase, ahead of plan.

• Adjusted EBIT rose 18% year-over-year to €1,177 million, with margin up to 6.4% from 5.7%.

• Free cash flow was €502 million, a significant turnaround from €(557) million last year, at the top of guidance.

• Bombardier Transportation integration completed, with backlog margins returning to pre-merger levels and quality indicators at their best.

Financial highlights

• Orders reached €19.8 billion (+4.9% vs prior year), with backlog at ~€95 billion.

• Adjusted EBIT margin increased by 70 bps to 6.4%; adjusted net profit stood at €498 million.

• Net financial debt reduced to €434 million from €2,994 million, supported by deleveraging and capital increase.

• Adjusted EBITDA reached nearly €1.5 billion, 8% of sales.

• No dividend proposed for FY 2024/25.

Outlook and guidance

• FY 2025/26 guidance: book-to-bill above 1, organic sales growth of 3–5%, adjusted EBIT margin around 7%, free cash flow €200–400 million, with more pronounced seasonality.

• Medium-term ambitions: backlog to exceed €100 billion, average sales growth ~5%, adjusted EBIT margin 8–10% by FY 2026/27, and cumulative free cash flow of at least €1.5 billion.

• Seasonality expected to be more pronounced in FY 2025/26, with H1 negative and strong H2 cash flow.

• Outlook excludes potential impact from tariffs; company expects to pass on any such costs.