April 16 (Reuters) - Rail infrastructure group Alstom on Thursday revised its adjusted earnings before interest and taxes (EBIT) margin target to 6.5% by the end of the 2026/27 year from a previous range of 8%-10%.
In its preliminary full-year results, the company said its adjusted EBIT margin for the full-year stood at around 6%, down from last year and below the 7% target the French company had previously set.
o Profitability was hit mainly by "some large rolling-stock projects (progressing) more slowly than anticipated" which weighed on near-term margins and cash, Alstom's CEO said in a press release
o The French group also withdrew its three-year free cash-flow target of 1.5 billion euros ($1.77 billion) by 2026/27.
o The CEO said the company was launching "immediate actions to stabilise performance while preparing deeper operational changes to restore sustainable execution, cash generation and profitable growth"
o Its preliminary full-year outlook included a book-to-bill ratio above 1, organic sales growth of about 5%, an adjusted EBIT margin of 6.5%, and positive free cash-flow
o The company provided guidance for around 1.5 billion of free cash-flow consumption in first half of the 2026/27 year
o Full-year preliminary order intake was 27.6 billion euros, with an order backlog of over 100 billion euros
o Full-year preliminary free cash-flow was around 330 million euros
o Full-year preliminary sales were 19.2 billion euros
($1 = 0.8493 euros)
(Reporting by Jakob Van Calster. Editing by Jane Merriman)
