Half Year 2026 Alstom SA Earnings Call Transcript
Key Points
- Alstom SA (ALSMY) reported strong commercial momentum with orders reaching EUR10.5 billion, driven by Rolling Stock and North America.
- The company achieved a book-to-bill ratio of 1.2, aligning with full-year guidance.
- Sales increased by 7.9% organically to EUR9.1 billion, with contributions from all product lines and regions.
- Adjusted EBIT rose by 13% year-on-year to EUR580 million, improving the margin from 5.9% to 6.4%.
- The integration of Bombardier Transportation is complete, allowing Alstom SA (ALSMY) to focus on industrial and development performance improvements.
- Free cash flow was negative EUR740 million, reflecting higher seasonality and typical cash flow patterns.
- The gross margin slightly decreased to 13.6% due to regional mix headwinds, despite improvements in project execution.
- The company faces headwinds from foreign exchange impacts, affecting both sales and adjusted EBIT margins.
- Contract working capital was a EUR1.2 billion headwind, driven by the ramp-up phase of Rolling Stock projects.
- Net financial debt increased to EUR1.4 billion, up from EUR434 million at the end of March, due to free cash flow changes and other financial activities.
Hello, and welcome to the Alstom half year results for fiscal year 2025-2026. My name is George. I'll be your coordinator for today's event. (Operator Instructions)
I'd now like to hand the call over to your host, Mr. Henri Poupart-Lafarge, CEO; and Mr. Bernard Delpit, Executive Vice President and CFO. Please go ahead.
Thank you. Good evening, everybody, and thanks for joining Alstom's first half results conference call. I'm Henri Poupart-Lafarge, Group CEO, and I'm joined by Bernard Delpit, EVP and CFO. I will first comment on the highlights of the first half before Bernard will walk you through the financial results. I will then comment on guidance before opening the floor for your questions.
So let me start with the key figures for the first half. Orders reached EUR10.5 billion with strong commercial momentum in Q2, particularly driven by Rolling Stock and North America. The book-to-bill ratio stood at 1.2%, fully
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