Alstom (ALO) Q3 2026 TU earnings summary

Executive summary

• Orders reached €20 billion in the first nine months, with a record €9.6 billion in Q3, driving backlog above €100 billion; book-to-bill ratio was 2 in Q3 and 1.4 for the first nine months.

• Major contract wins in France, Germany, Poland, Greece, Australia, Mexico, Canada, and across Europe, Americas, and Asia-Pacific, with strong demand for bundled Rolling Stock and Services solutions.

• Operational focus on project homologation, industrial footprint expansion, and phased deployment of new metro lines, including new launches in Paris and India.

• Integrated solutions and bundled contracts (rolling stock with maintenance) are increasingly successful, supporting growth and margin improvement.

• Transformation plan ongoing in Germany; Görlitz plant handed over to KNDS.

Financial highlights

• 9M sales reached €13.9 billion, up 3% reported and 7.2% organic; Q3 organic growth was 5.9%.

• Rolling Stock sales were €7.2 billion (+3% reported, +6% organic), Services €3.4 billion (+5% reported, +9% organic), Signalling €2.0 billion (+4% reported, +13% organic), Systems €1.3 billion (-4% reported, flat organic).

• Book-to-bill ratio was 1.4 for the group and 1.8 for Rolling Stock over the first nine months.

• Foreign exchange was a 3.3-point headwind; scope changes (notably North American signaling deconsolidation) had a negative 80bps impact.

• Gross margin in backlog continues to improve, with new orders exceeding average backlog margin.

Outlook and guidance

• FY 2025/26 guidance confirmed: organic sales growth above 5%, adjusted EBIT margin around 7%, and free cash flow between €200–400 million.

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

• Free cash flow guidance remains €200–400 million, with at least €1.5 billion cumulative free cash flow targeted by 2027.

• R&D spending assumed at around 3% of sales; car production expected to remain stable.

• Medium-term ambitions reaffirmed as per May 2025 announcement.