Alstom Q3 2024/25: Strong Orders and Solid Sales Growth

Alstom Reports Promising Q3 Results for Fiscal Year 2024/25

Alstom, a leader in sustainable mobility solutions, has shared its financial results for the third quarter of the fiscal year 2024/25, reaffirming its outlook for the year. During this period, the company secured an impressive order intake of €4.3 billion, bringing the total for the first nine months up to €15.2 billion.

Order Intake and Sales Highlights

In the third quarter, Alstom's sales reached €4.7 billion, a significant increase of 5.3% compared to last year. Notable aspects of these results include a 6.9% organic growth, indicating robust demand in various sectors. The positive trend in order intake showcases the company's firm footing in a supportive rail market, underpinned by a strong portfolio mix.

Order Breakdown

The order intake for the quarter also highlights the expansion of Alstom's product offerings, particularly in Signalling and Services, which constituted 65% of the third quarter's orders. Such strong performance is crucial given the increasing demand for advanced rail signaling solutions across the globe.

Geographic Performance Analysis

Regionally, Europe emerged as a key market, contributing 64% of the total orders. Alstom has been making strides with significant projects, including a €520 million order for SNCF Voyageurs to deliver additional RER NG trains. Such initiatives reflect Alstom's commitment to enhancing rail infrastructure to meet rising passenger demand.

Financial Outlook for FY 2024/25

Looking ahead, Alstom maintains an optimistic outlook for FY 2024/25, projecting a book-to-bill ratio above 1 and organic sales growth of around 5%. This positive forecast is supported by a solid order backlog, which stood at €94.7 billion as of December 31, empowering the company with strong visibility for future sales.

Cash Flow and Profit Margins

Furthermore, Alstom anticipates a free cash flow within the range of €300 million to €500 million, alongside an adjusted EBIT margin of approximately 6.5%. The company's strategic focus on cost efficiency and effective project execution are pivotal in driving these promising financial metrics.

Recent Project Deliveries

In terms of project deliveries, Alstom has made significant progress. The inauguration of Mumbai Metro's Aqua Line marked a key milestone, showcasing the company's expertise in delivering complex rail solutions. Additionally, Alstom is progressing with its automated metro projects in Taiwan and various other global locations, reinforcing its position as a leader in the mass transit sector.

Conclusion

With a strong financial foundation and an impressive order book, Alstom's future appears bright as it continues to innovate and expand its services globally. The company’s commitment to sustainable transportation solutions is evident, and it stands poised to capture further market opportunities as the demand for efficient rail systems grows.

Frequently Asked Questions

What were Alstom's key financial figures for Q3 2024/25?

Alstom reported an order intake of €4.3 billion and sales of €4.7 billion, with a year-on-year sales increase of 5.3%.

What is Alstom's outlook for FY 2024/25?

The company expects a book-to-bill ratio above 1, organic sales growth around 5%, and a free cash flow of €300 to €500 million.

How is Alstom addressing market demand?

Alstom is actively rebalancing its order portfolio, focusing on growth sectors such as Signalling and Services while executing cost-efficiency measures.

What projects has Alstom recently completed?

Recent notable projects include the Mumbai Metro's Aqua Line and several automated metro trains in Taiwan, showcasing Alstom's capability in modern rail solutions.

What percentage of orders comes from Europe?

In Q3 2024/25, Europe accounted for 64% of Alstom's total order intake, highlighting the strength of the European rail market for the company.

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