Alstom has reported on its commercial performance for the first half of the fiscal year 2024/25 (1 April – 30 September 2024), demonstrating significant commercial successes and strong financial results.
The rolling stock manufacturer states that these achievements underscore its ongoing efforts to drive growth, enhance operational efficiency, and solidify its position in the rail transport industry.
Key Financial Highlights:
- Book-to-Bill Ratio: 1.25, indicating sustained demand and strong order intake of 10.9 billion EUR
- Sales: Reached 8.8 billion EUR, reflecting a 5.6% organic growth year-on-year
- Adjusted EBIT: Improved by 18% to 515 million EUR, achieving a margin of 5.9% (+70 basis points YoY)
- Net Financial Debt: Reduced significantly to 927 million EUR, down from 2,994 million EUR in March 2024, following the successful execution of a 2 billion EUR deleveraging plan.
- Free Cash Flow: Stood at 138 million EUR, benefiting from favourable downpayment phasing.
Contributing to these figures, Alstom has secured notable contracts across geographies, driving a 30% year-on-year increase in order intake.
Europe
- Germany: 3.6 billion EUR S-Bahn Cologne contract, including the supply of 90 Adessia Stream™ commuter trains and long-term service agreements
- France: A 850 million EUR order for 12 Avelia Horizon™ very high-speed trains, marking the entry of a private operator into the Atlantic rail market
- Italy: A 323 million EUR contract with Mercitalia Rail for Traxx™ Universal locomotives.
Americas, Asia-Pacific, and MEA
- Americas: Modest intake of 0.9 billion EUR, reflecting a slower pace of major awards
- Asia-Pacific: 1 billion EUR in orders, including a high-capacity signalling project for Perth’s rail network
- MEA: 0.5 billion EUR intake, bolstered by new services contracts
Backlog
The total backlog reached 94.4 billion EUR, providing strong visibility on future revenue streams.
Operational and Strategic Progress:
Production Ramp-Up: The Group is set to deliver 4,400–4,600 railcars for FY 2024/25, overcoming supply chain challenges.
Cost Efficiency: SG&A costs as a percentage of sales dropped to 6.0% from 6.6% in March 2023, driven by efficiency initiatives.
Innovation: Investments in autonomous mobility and predictive maintenance technologies continue.
Sustainability and ESG Achievements
Alstom remains committed to decarbonisation, achieving 79% renewable electricity use by September 2024. The company has also:
- Signed an agreement with SSAB for green steel sourcing
- Installed solar panels across key facilities
- Retained its position in the CAC40 ESG index for the fourth consecutive year, complemented by a Platinum EcoVadis score of 86/100.
FY 2024/25 Outlook
Alstom reaffirmed its financial targets for the fiscal year:
- Book-to-Bill Ratio: Above 1
- Organic Sales Growth: ~5%
- Adjusted EBIT Margin: ~6.5%
- Free Cash Flow: Between €300–€500 million.
“Demand remains robust, driven by green mobility policies, proving resilient to geopolitical tensions, and we had a solid commercial performance in this first half. We are making steady progress on our roadmap, with backlog margins returned to pre-merger levels and a focused shift towards Services and Signalling.
“With a strengthened balance sheet and an Investment grade rating with a stable outlook, we are focused on effectively managing our projects portfolio, amid supply chain challenges, while driving cost efficiencies to deliver on our financial trajectory.”
