Alstom announced on Wednesday that it expects organic revenue growth between 3% and 5% for its 2025/26 fiscal year, after outperforming analyst expectations for 2024/25.
The TGV manufacturer reported revenue of €18.49 billion for the year ended March 31, representing organic growth of 6.6%. The company posted a "book-to-bill" ratio of 1.1, with orders totaling €19.84 billion.
Analysts had on average forecast revenue of €18.30 billion and orders received of €19.64 billion, according to a consensus provided by the group.
For 2025/26, Alstom also anticipates an adjusted operating margin of around 7% and aims to generate free cash flow in the range of €200 million to €400 million.
Last year, the group targeted organic revenue growth of +5%, an operating margin of +6.5%, and free cash flow generation of €300 million to €500 million.
The French group clarified in a statement that its 2025/26 ambitions exclude any potential impact from tariffs, particularly those imposed by the United States.
The rail equipment manufacturer recorded adjusted operating income (EBIT) of €1.17 billion in 2024/25, with an operating margin of 6.4%, while analysts had expected adjusted EBIT of €1.16 billion and a margin of 6.3%.
Alstom's annual free cash flow stood well above analyst expectations of €330 million, reaching €502 million.
Confirming its medium-term ambitions, including generating an adjusted operating margin between 8% and 10%, Alstom said it expects to generate at least €1.5 billion in cumulative free cash flow over the three years from 2024/25 to 2026/27.
Alstom also noted that no dividend will be paid for the 2024/25 fiscal year.
(Written by Etienne Breban; edited by Augustin Turpin)
