Alstom (ALO) Q1 25/26 TU earnings summary

Executive summary

• Orders reached €4.1 billion in Q1 2025/26, up 12% year-over-year, reflecting strong commercial momentum and major contracts in France and Bulgaria.

• Sales totaled €4.5 billion, up 2.8% year-over-year (7.2% organic), with all product lines contributing positively despite FX and scope headwinds.

• Backlog stood at €92.3 billion as of June 30, 2025, providing strong sales visibility.

• Major contracts in France (€1.7 billion) and Bulgaria (€600 million) supported Rolling Stock segment growth.

Financial highlights

• Book-to-bill ratio was 0.9x for Q1 2025/26, with Rolling Stock at 1.0x.

• Rolling Stock sales reached €2,416 million (+3% reported, +5% organic); Services €1,070 million (stable, +2% organic); Signalling €603 million (-5% reported, +9% organic); Systems €425 million (+25% reported, +36% organic).

• Adjusted EBIT margin targeted around 7% for the full year.

• Free cash flow guidance for FY 2025/26 is €200–400 million, with H1 up to -€1 billion due to seasonality.

Outlook and guidance

• Organic sales growth expected in the 3–5% range for FY 2025/26, with H1 at the top end.

• Book-to-bill for group and Rolling Stock to remain above 1 for the year.

• At least €1.5 billion free cash flow targeted over FY 2024/25–2026/27.

• R&D expenses to return above 3% of sales for the year.