- Alstom’s third-quarter sales reached €4.67 billion, exceeding estimates and showing a 7.8% year-on-year increase.
- The company reported orders of €4.26 billion, a 22% decrease from the previous year but still above the estimated €3.96 billion.
- Alstom’s backlog stood at €94.7 billion, beating the estimate of €93.65 billion.
- Rolling Stock sales for nine months were €6.97 billion, a 3% increase year-on-year.
- Services sales grew by 9.3%, reaching €3.26 billion over nine months.
- Systems sales saw a significant 20% year-on-year rise, totaling €1.34 billion.
- Signalling sales slightly decreased by 1.6%, amounting to €1.88 billion.
- Rolling Stock orders increased by 23% to €5.72 billion for the nine-month period.
- Services orders surged by 27%, reaching €6.26 billion.
- Systems orders fell substantially by 74%, totaling €632 million.
- Signalling orders climbed 39% to €2.60 billion.
- Alstom maintains a book-to-bill ratio forecast above 1%, with an estimate of 1.1%.
- It projects an adjusted EBIT margin of about 6.5%, slightly above the estimate of 6.38%.
- The company expects free cash flow between €300 million to €500 million, with an estimate of €418.7 million.
- Full-year organic sales growth is anticipated to be around 5%.
- Alstom is actively rebalancing its backlog portfolio in a favorable Rail market according to CEO Henri Poupart-Lafarge.
- While Signalling and Services operations progress well, the Rolling Stock segment faces supply chain challenges.
- Cost efficiency measures are being implemented, and integration efforts are nearing completion.
- Alstom confirms its financial targets for FY 2024/25.
“`
A look at Alstom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have given Alstom a positive long-term outlook based on its Smart Scores. The company received high scores in Growth, Resilience, and Momentum, indicating strong potential for future development and steady performance. Alstom’s focus on innovation and digital mobility solutions has positioned it well for growth opportunities in the transportation sector.
Although Alstom scored lower in Dividend compared to other factors, its solid scores in Value, Growth, Resilience, and Momentum suggest a promising future for the company. With a diverse range of products and services catering to the transportation industry worldwide, Alstom is well-positioned to capitalize on emerging market trends and drive long-term value for its stakeholders.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
