Alstom (ALO) H1 25/26 earnings summary

Executive summary

• Orders reached €10.5 billion in H1, with strong commercial momentum, especially in North America and Rolling Stock; book-to-bill ratio at 1.2, aligned with guidance.

• Sales were €9.1 billion, up 7.9% organically, with all product lines and regions contributing.

• Net profit (group share) rose to €220 million from €53 million year-over-year, driven by improved operational performance and margin expansion.

• Backlog increased to €96.1 billion, providing strong visibility for future sales.

• Major operational milestones achieved in North America and France, including new train rollouts and facility investments.

Financial highlights

• Orders: €10.5 billion (+3.2% reported, +7.9% organic year-over-year); book-to-bill ratio at 1.2.

• Sales: €9.1 billion (+3.2% reported, +7.9% organic year-over-year).

• Adjusted EBIT rose 13% to €580 million, with margin improving to 6.4% (up 50bps year-over-year).

• Adjusted net profit increased to €338 million from €224 million year-over-year.

• Free cash flow was negative at €(740) million, reflecting expected seasonality and inventory build-up for higher H2 production.

Outlook and guidance

• Organic sales growth outlook for FY 2025/26 upgraded to above 5% (previously 3–5%).

• Adjusted EBIT margin guidance confirmed at around 7%.

• Free cash flow generation expected within €200–400 million range.

• Book-to-bill ratios for group and Rolling Stock expected above 1.

• Medium-term ambition to deliver at least €1.5 billion in free cash flow over three years remains unchanged.