Alstom (ALO) Q1 25/26 TU earnings summary

Executive summary

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

• Sales totaled €4.5 billion, representing 2.8% reported and 7.2% organic growth, with all product lines contributing.

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

• Notable ramp-ups in Germany and key deliveries across multiple regions supported growth.

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

Financial highlights

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

• Rolling Stock sales were €2,416 million (+3% reported, +5% organic), with ramp-up in Germany and France.

• Services sales were €1,070 million (stable reported, +2% organic), with ramp-ups in Germany, Italy, and South Africa.

• Signaling sales were €603 million (-5% reported, +9% organic), mainly in France, Italy, and Germany.

• Systems sales were €425 million (+25% reported, +36% organic), driven by Brazil and the Philippines.

Outlook and guidance

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

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

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

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

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