- Alstom is expecting its full-year organic sales growth to exceed 5%, surpassing previous estimates of 3% to 5% and is slightly above the current estimate of 5.13%.
- The company maintains its forecast for an adjusted EBIT (Earnings Before Interest and Taxes) margin of approximately 7%, compared to an estimate of 6.86%.
- Alstom continues to forecast free cash flow between €200 million to €400 million, against an estimate of €190.5 million.
- The book-to-bill ratio, which measures order intake versus billing, is expected to remain above 1, with current estimates suggesting 1.08.
- First half adjusted EBIT increased by 13% year-over-year, reaching €580 million, despite a negative free cash flow of €740 million.
- Total sales for the first half were €9.06 billion, reflecting a year-over-year increase of 3.2%.
- Sales breakdown: Rolling Stock (€4.67 billion, +3% y/y), Services (€2.27 billion, +3.1% y/y), Systems (€823 million, +2.9% y/y), Signalling (€1.31 billion, +4.7% y/y).
- Orders received amounted to €10.47 billion, showing a decline of 4.4% year-over-year.
- Order trends by sector: Rolling Stock saw a significant rise (+51% y/y) to €6.65 billion, while Services fell by 60% to €1.65 billion, Systems decreased by 52% to €214 million, and Signalling dipped by 1.2% to €1.96 billion.
- The company’s backlog stands at €96.12 billion.
- The fiscal year outlook builds upon several assumptions, including measures to offset the impact of US tariffs.
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A look at Alstom Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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 project a positive long-term outlook for Alstom, a company focusing on integrated transportation systems. Smartkarma Smart Scores reveal high scores for Growth and Value factors, indicating strong potential for expansion and a sound investment in terms of stock value. Additionally, the company shows good Momentum in the market, suggesting a promising trend in performance over time. However, the low Dividend score may not attract income-seeking investors looking for regular payouts. Alstom’s Resilience score lands in the middle range, signifying a moderate ability to weather economic uncertainties. Overall, Alstom appears positioned for substantial growth and value appreciation in the coming years.
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.
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