Alstom Reports Profit and Projects Growth for Fiscal 2026

Alstom SA flips loss to profit in fiscal 2025, projecting growth with solid sales increases. The company confirms mid-term targets, signaling positive trends for investors.

Date: 14-05-2025

AI Rating: 8

Overview of Financial Performance: Alstom SA has reported a significant turnaround in its fiscal 2025 results, posting a profit of 149 million euros compared to a loss of 309 million euros in the previous year. Adjusted net profit rose dramatically to 498 million euros from 44 million euros a year ago, showcasing remarkable recovery and efficiency improvements.

Revenue Growth: The company achieved sales of 18.49 billion euros, reflecting a year-over-year growth of 4.9%. This organic growth of 6.6% indicates strong demand in their services and products, particularly aided by recent contract wins such as the 3.6 billion euros S-Bahn Rheinland project. Such performance may enhance investor confidence and suggest a continued positive trend in their market share.

Profit Margins: Alstom also reported an adjusted EBIT of 1.177 billion euros, totaling an 18.1% increase from the prior year. The adjusted EBIT margin of 6.4% (up from 5.7% year-over-year) reflects improved operational efficiency, which is crucial for maintaining competitive advantage in the rolling stock sector.

Cash Flow and Future Outlook: The expectation of generating at least 1.5 billion euros in free cash flow over the next three years is crucial, especially with anticipated headwinds from Contract Working Capital. This predicted cash flow provides a safety net for operational flexibility and potential investment in further growth initiatives.

Backlog and Order Growth: With a backlog nearing 100 billion euros, Alstom exhibits significant visibility for future sales. The order intake grew by 4.7% to 19.85 billion euros, indicating ongoing confidence from clients, which reinforces the company's future revenue streams.

In conclusion, the reported figures and future projections suggest a robust recovery strategy in place, positioning Alstom favorably in the market, making it an appealing consideration for investors looking for stability and growth in the industrial sector.

Stocks: AOMFF ALS.L