In This Article:
-
Orders: EUR19.8 billion for the year, with a book-to-bill ratio of 1.1.
-
Sales: EUR18.5 billion, representing 6.6% organic growth.
-
Adjusted EBIT: EUR1.2 billion, up 18% year-on-year, with a 6.4% margin.
-
Free Cash Flow: EUR502 million, at the top of the guided range.
-
Backlog Margin: Close to 18%, reflecting quality order intake.
-
Gross Margin: 14.1%, a decrease of 20 bps due to legacy projects and scope.
-
Net Income: Adjusted net profit of EUR498 million.
-
Net Financial Debt: Decreased to EUR434 million from EUR3 billion.
-
Trade Working Capital: 34 days of sales, stable at EUR1.7 billion.
-
Contract Working Capital: 89 days of sales, representing EUR4.5 billion.
-
Effective Tax Rate: 35%, expected to revert to 27%-25% next year.
-
Scope 1+2 Emissions: 128 KtonCO2, an 8% decrease year-on-year.
-
Adjusted EBITDA: Nearly EUR1.5 billion, representing 8% of sales.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Alstom SA (ALSMY) reported strong order intake of EUR19.8 billion, with a book-to-bill ratio of 1.1, indicating healthy demand.
-
Sales exceeded expectations, reaching EUR18.5 billion, representing a 6.6% organic growth.
-
Adjusted EBIT increased by 18% year-over-year to nearly EUR1.2 billion, with a margin improvement from 5.7% to 6.4%.
-
Free cash flow was robust at EUR502 million, at the top of the guided range, demonstrating effective cash management.
-
The backlog margin improved to 18%, reflecting a favorable mix towards services and Signalling, and the completion of legacy contracts.
Negative Points
-
There were delays in large rolling stock orders, impacting the order intake slightly below the EUR20 billion mark.
-
The gross margin decreased by 20 basis points to 14.1% due to legacy projects and scope changes.
-
The company anticipates a more pronounced seasonality in free cash flow for fiscal year '26, with potential headwinds in working capital.
-
The effective tax rate stood at 35%, higher than the expected range of 27% to 25% for the next year.
-
Challenges remain in ramping up production in Germany and adapting to supply chain constraints, although improvements have been made.
Q & A Highlights
Q: Can you provide more details on the contract working capital changes for FY '26 and the impact of delayed contracts? A: The increase in contract assets is largely due to the mobilization of resources for services and Signalling, which represent roughly two-thirds of the increase, with rolling stock making up the rest. The TGVM in France and the AMTRAK project in the US are significant contributors. Delayed contracts are not a major factor, and the R&D increase is mostly due to phasing, not capitalization changes.