Alstom reported record orders in fiscal year 2025/2026, but acknowledges that the execution of certain rolling stock contracts continues to impact margins and cash flow. The French group announced new orders worth EUR 27.6 billion, up 39%, and an order backlog of EUR 104.4 billion, but the financial results also show pressures related to production and certain rolling stock projects.
In its annual results press release, Alstom speaks of a “record commercial performance”, but also of a “difficult execution” on certain rolling stock contracts. The company notes that the planned margin expansion was impacted by lower production and certain train projects.
“Market momentum is strong, and we have made significant progress in recent years, including through the solid performance of the services division, improved order quality, and a strengthened balance sheet. Although our teams are delivering successfully every day across the entire portfolio, the execution of major rolling stock contracts continues to weigh on short-term margins and cash generation,” said Martin Sion, CEO of Alstom.
He noted that the group’s priority is to improve execution quality through stricter project management, greater planning discipline, and better coordination between engineering, the supply chain, and production.
Orders of EUR 27.6 Billion
In the fiscal year ended March 31, 2026, Alstom recorded orders of EUR 27.6 billion, compared to EUR 19.8 billion in the previous fiscal year. The book-to-bill ratio was 1.4, meaning that the value of new orders significantly exceeded sales for the period.
The group’s sales reached EUR 19.17 billion, up 3.7%, or 7.2% on an organic basis. Net profit attributable to the group was EUR 324 million, compared to EUR 149 million in fiscal year 2024/2025.
The order backlog reached EUR 104.4 billion, providing the group with high visibility on future sales. Alstom notes that the increase in the order backlog was supported by the favorable book-to-bill ratio in fiscal year 2025/2026.
Europe remained the group’s main market, with orders totaling EUR 15.6 billion. Among the major contracts mentioned by Alstom are the Adessia Stream trains for Comboios de Portugal, the approximately EUR 1.6 billion contract with PKP Intercity for 42 Coradia Max double-decker electric trains and 30 years of maintenance, as well as orders for Avelia Horizon high-speed trains destined for SNCF and Eurostar.
In the Americas, orders rose to 7.9 billion euros, driven by contracts in the United States and Canada, including rolling stock for Long Island Rail Road, Metro-North Railroad, NJ Transit, and the Toronto Transit Commission. In Asia-Pacific, orders reached 2.9 billion euros, with projects in Australia and New Zealand.
Lower Margin and Production Under Pressure
Despite record orders, operating profitability did not improve. Adjusted EBIT was EUR 1.168 billion, nearly flat compared to EUR 1.177 billion in the previous year. The adjusted EBIT margin fell from 6.4% to 6.1%.
Alstom notes that the margin was affected by several factors, including currency effects, investments in research and development, and project execution. The negative impact of project execution is estimated at 60 basis points, partially offset by the performance of certain joint ventures and reductions in administrative and sales costs.
The pressure is also evident in production. In fiscal year 2025/2026, Alstom produced 4,284 railcars, 2% fewer than the 4,383 produced in the previous year. In the fourth quarter, production was 1,206 railcars, down 6% from the same period the previous year.
Rolling stock contracts affect cash flow
The group’s free cash flow was 336 million euros, compared to 502 million euros in the previous fiscal year. Alstom says the result is in line with guidance but was achieved despite pressures on contractual working capital.
The company notes that the change in contractual working capital had a negative impact of EUR 290 million in fiscal year 2025/2026. This pressure was partly linked to large rolling stock platforms in the production ramp-up phase.
In other words, large orders provide long-term visibility but put pressure on execution during the phases when projects must be industrialized, manufactured, tested, and delivered. This is the area where Alstom says it needs to take action in the coming fiscal year.
Action Plan for 2026/2027
For the 2026/2027 fiscal year, Alstom announces that its priorities are improving execution, reducing the cost base, simplifying processes, and accelerating savings in procurement. The company estimates organic sales growth of approximately 5%, production of 4,400–4,500 railcars, an adjusted EBIT margin of approximately 6.5%, and positive free cash flow.
However, the Group warns that seasonality will result in a cash burn of approximately 1.5 billion euros in the first half of fiscal year 2026/2027.
Alstom will present an operational plan and medium-term objectives at an investor day scheduled for early 2027. The company says that disciplined implementation of this plan should support a gradual improvement in the adjusted EBIT margin toward 8-10%, as well as better cash generation.
Solid orders, but execution becomes the main challenge
Alstom’s results highlight the contrast between strong demand for rolling stock and the difficulty of turning large orders into profitable deliveries and stable cash flow. The group enters the new fiscal year with a portfolio of over EUR 104 billion, but acknowledges that some major train contracts are weighing on short-term performance.
For Alstom, the 2026/2027 fiscal year will be one of operational correction. The challenge is no longer just winning contracts, but delivering them under better conditions, with tighter coordination between design, production, the supply chain, and project management.
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