Alstom Forecasts Exciting Q2 and H1 Results Ahead
Alstom Forecasts Exciting Q2 and H1 Results Ahead
Alstom Note – Q2 and H1 2024/25 Preview
Alstom has set the stage for a promising preview of its upcoming Q2 and first half results for the fiscal year 2024/25. The company is known for its commitment to innovation and sustainability in the transportation sector, and these factors are expected to play a significant role in their upcoming performance.
Significant Orders in Q2 2024/25
In the latest quarter, Alstom has reported several large orders, valued at more than €200 million, which speak volumes about its market position and client trust. Here’s a summary of these prominent orders:
- Proxima: Approximately €850 million for twelve high-speed trains in France with a 15-year maintenance commitment.
- S-Bahn Köln: A frame agreement worth around €3,600 million involving 90 trains and a lengthy 34-year maintenance plan, with significant portions expected to be booked in Q2.
- Perth Signaling Project: A promising project in Western Australia valued at roughly €650 million focusing on high-capacity signaling.
This brings the total value of large orders for the quarter to about €5,100 million, affirming Alstom's robust market presence.
Outlook on Base Orders
Aside from the substantial orders, Alstom maintains a steady flow of base orders (those under €200 million), which are crucial to its consistent revenue generation. Historically, these base orders contribute roughly €1.5 billion to €2.0 billion per quarter, especially benefiting from a positive seasonal trend. Alstom’s strategic guidance indicates that while large orders will influence overall performance, base orders remain a strong foundation for consistent growth.
Historical Breakdown of Orders
Reflecting on past performances, Alstom has seen varied order intakes in previous fiscal years:
Fiscal Year | Base Orders (€ billion) | Large Orders (€ billion) | Total Orders (€ billion) |
2021/22 | 1.9 | 1.4 | 3.3 |
2022/23 | 1.7 | 2.8 | 4.5 |
2023/24 | 3.2 | 1.4 | 4.6 |
The increasing trend in base orders underscores Alstom's adaptability and its strategic positioning within a competitive landscape.
Sales Performance Expectations
Looking forward, Alstom anticipates organic sales growth of approximately 5% for FY 2024/25. They are proactively addressing foreign exchange impacts and changes in operational structure that may affect this forecast. The company has outlined its strategy clearly, targeting continual innovation and improved operational efficiency.
Financial Insights and Adjusted EBIT
For FY 2024/25, Alstom has projected an adjusted EBIT margin around 6.5%, marking an improvement from the previous fiscal year. This goal is backed by operational efficiencies and cost-saving initiatives. Trends from H1 2024/25 show that they expect this margin to be more weighted towards the latter half of the year due to seasonal variations.
As part of its comprehensive approach, Alstom is determined to maintain transparency regarding any non-operating costs that could affect overall financial health. By strategically managing integration costs and restructuring, they aim to optimize financial outcomes.
Free Cash Flow Projections
In terms of free cash flow (FCF), Alstom envisions a range of between €300 million to €500 million for FY 2024/25, despite anticipating negative cash flow for the first half of the fiscal year as market dynamics evolve.
Frequently Asked Questions
What is Alstom's expected performance for FY 2024/25?
Alstom is forecasting organic growth of around 5%, with a focus on continuous innovation and efficiency improvements.
How much did Alstom secure in large orders during Q2?
The company secured large orders totaling approximately €5,100 million in Q2 2024/25.
What trends are influencing Alstom's sales growth?
Alstom's sales growth is influenced by a combination of large orders, strong base order performance, and market demand for sustainable transportation solutions.
What is the adjusted EBIT margin guidance for Alstom?
For FY 2024/25, Alstom anticipates an adjusted EBIT margin of around 6.5%, an improvement from the previous year.
How is Alstom addressing its free cash flow challenges?
Alstom is expected to manage its free cash flow within a projected range of €300 million to €500 million despite potential short-term negative flows.
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