Alstom Reports Higher Sales but Orders Decline in Q3

Alstom SA's sales rose 7.9% in Q3, though orders fell 21.9%. While the firm expects 5% organic sales growth, the decline in orders signals potential challenges. Investors should note this mixed outlook as the company continues to face supply chain issues.

Date: 22-01-2025

AI Rating: 5

Sales Performance: Alstom SA reported impressive sales growth of 7.9% in its third quarter, reaching 4.67 billion euros compared to 4.33 billion euros the previous year. The organic growth figure of 9.8% indicates strong underlying performance.

Order Decline: In contrast, the company faced a significant downturn in orders, which totaled 4.26 billion euros, a decrease of 21.9% from 5.45 billion euros. This indicates potential future challenges as order intake reduced sharply. The organic decline in orders was 22.2%.

Segmentation Insights: Orders for Services and Signalling comprised 65% of the total order intake for the quarter, highlighting important segments for the company. Furthermore, 64% of the order intake originated from Europe.

Management Remarks: CEO Henri Poupart-Lafarge emphasized the importance of addressing the backlog portfolio and navigating supply chain issues that affect Rolling Stock division. He mentioned ongoing cost efficiency measures and the near completion of integration efforts, which can improve the company's outlook.

Future Expectations: For fiscal year 2024/25, Alstom maintains an optimistic projection for organic sales growth of around 5% and expects an adjusted EBIT margin near 6.5%. Despite the decline in orders, the company seems to anticipate stable market demand.

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