Alstom (ALO) Investor presentation summary

Investment profile

• Market positions: #1 in rolling stock, services and turnkey; #3 in signalling. Global footprint spans 207 sites in 61 countries.

• Value creation spans rolling stock, services, signalling and systems; indicative operating margins range from progressive improvement from breakeven in rolling stock to solid mid-teens in services.

• Addressable rolling stock market estimated at €38bn per year for 2024–2026, with 2.6% CAGR; cited demand drivers include ridership growth, fleet renewal and rail investment.

Business lines and growth drivers

• Rolling stock and components FY 2025/26 backlog €45.0bn, orders €14.3bn and sales €10.0bn; management targets progressive margin uplift to high single digits.

• Services FY 2025/26 backlog €40.1bn, orders €6.5bn and sales €4.7bn; installed base exceeds 150,000 cars, with 35% coverage by services contracts targeted for 2030.

• Signalling FY 2025/26 backlog €9.8bn, orders €3.4bn and sales €2.7bn; market estimated at ~€17bn annually, growing ~4% CAGR, supported by digitalisation, automation and ERTMS rollout.

• Systems FY 2025/26 backlog €9.6bn, orders €3.4bn and sales €1.8bn; large integrated projects support high-single-digit profitability and long-term operations and maintenance opportunities.

• Services organic sales CAGR was 9% since FY 2021/22; ~50% of average order intake over the last three years was bundled with rolling stock or turnkey contracts.

FY 2025/26 performance

• Record order intake of €27.6bn; sales grew 7.2% organically to €19.171bn.

• Adjusted EBIT was €1.168bn, down 1% YoY; adjusted EBIT margin was 6.1%, versus 6.4% in FY 2024/25.

• Adjusted gross margin before PPA impairment was €2.555bn, down 2%; margin fell 80 bps to 13.3%.

• Adjusted net profit rose 12% to €559m; group net profit increased to €324m from €149m.

• Free cash flow was €336m, within guidance despite contract working-capital headwinds; net debt declined to €404m at March 2026 from €434m a year earlier.