Alstom (ALO) Q1 26/27 TU earnings summary

Executive summary

• Q1 order intake was €2.6 billion with a book-to-bill ratio of 0.5, expected to accelerate in Q2 and for the full year above one.

• Backlog at end of June stood at €102.8 billion, with Rolling Stock as the largest contributor and significant contracts in Africa, Middle East, and Central Asia.

• Operational milestones included TGV-M homologation in France, Africa's first monorail in Egypt, ARGOS digital interlocking in France, and new train deliveries in the US, Australia, and the UK.

• Car production in Q1 was 940 units, down 2% year-over-year, with all regions except Americas showing growth.

• Commercial momentum is expected to accelerate in Q2, with a robust pipeline for the year.

Financial highlights

• Q1 2026/27 sales reached €4,734 million, up 4.9% reported and 4.8% organic year-over-year.

• Orders totaled €2,560 million, down 37% year-over-year, with a book-to-bill ratio of 0.5x.

• Rolling Stock sales were €2.5 billion (+5% reported, +6% organic), Services €1.2 billion (+10% reported, +9% organic), Signalling €600 million (+4% reported/organic), Systems €400 million (down 8% reported, 10% organic).

• Backlog at end of June was €102.8 billion.

Outlook and guidance

• FY 2026/27 outlook confirmed: organic sales growth around 5%, book-to-bill above one, car production of 4,400-4,500 units, positive free cash flow, and adjusted EBIT margin around 6.5%.

• Free cash flow consumption of €1.5 billion expected in H1, with strong recovery in H2.

• Medium-term ambition to expand adjusted EBIT margin towards 8-10% and improve cash generation.

• Pipeline for Q2 includes orders in Middle East, France, North America, and the UK.