Alstom's Q1 2025/26 Report: Growth and Strong Outlook Ahead

Alstom's Q1 2025/26 Report: Strong Sales and Order Growth
As Alstom S.A navigates the current market landscape, it has successfully kicked off its fiscal year 2025/26 with notable results. The company has reported remarkable figures for the first quarter of this fiscal year, indicating consistent momentum. Order intake has reached €4.1 billion, a significant achievement, with a rolling stock book-to-bill ratio settling at 1.0x.
Sales Performance in Detail
Alstom's sales for the quarter amounted to €4.5 billion, marking an increase of 2.8% compared to the previous year, with an impressive 7.2% of this growth being organic. The performance is particularly commendable considering external factors, including a 2.7% headwind from foreign exchange fluctuations due to the strengthening euro.
Future Outlook Remains Positive
The positive trajectory set in Q1 establishes a solid foundation for growth in the remainder of the fiscal year. With a backlog totaling €92.3 billion as of June 30, 2025, Alstom's visibility for future sales remains robust. The company is confident in its fiscal year outlook, maintaining its medium-term ambitions intact.
Key Financial Figures
Highlighting key performance metrics: orders received for the quarter stood at 4,075 million euros compared to 3,645 million euros in Q1 of the prior fiscal year, showing an uplift of 11.8%. Sales figures for the quarter also reflect growth, indicating a general positive trend in both orders and sales.
Regional Contributions and Major Contracts
Across various regions, Europe has played a vital role in Alstom's success, contributing 85% of total order intake during this quarter. Key contracts include a significant order from SNCF Voyageurs worth around €1.7 billion for additional trainsets, along with substantial contracts in Bulgaria for electric trains valued at €720 million.
Updates on Deliveries and New Projects
The first quarter has also seen Alstom deliver significant milestones across its project portfolio. Deliveries of metro trains in France and new fleets in the UK underline Alstom's commitment to enhancing urban mobility and rail networks.
Market Stability and Operational Assumptions
Looking ahead, Alstom is cautiously optimistic about the market conditions, forecasting organic growth in sales between 3% and 5%. The company aims to maintain a book-to-bill ratio above 1.0x while generating €200 to €400 million in free cash flow.
Frequently Asked Questions
What were Alstom's key financial metrics for Q1 2025/26?
Alstom reported order intake of €4.1 billion and sales of €4.5 billion, up 2.8% from the previous year, with significant organic growth.
What does Alstom's backlog signify?
The backlog of €92.3 billion suggests strong visibility and support for future revenue growth.
Which regions contributed most to Alstom's growth during Q1?
Europe accounted for 85% of the total order intake, notably enhancing Alstom’s overall performance.
What are Alstom's sales growth expectations for the fiscal year?
The company expects organic sales growth between 3% and 5%, showcasing optimism about their market position.
What projects has Alstom recently delivered?
Key projects delivered include metro trains in France and new fleets in the UK, emphasizing Alstom's commitment to urban mobility solutions.
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