Earnings call transcript: Alstom’s H1 2026 profit slump deepens on Coradia woes

Alstom announced a significant decline in profitability for the first half of fiscal 2024-25 due to issues with its Coradia Max train platform, which pushed adjusted EBIT margin to about negative 4% from positive 6.4% a year earlier and prompted a reduction in full-year guidance. Despite a 3% rise in sales to 9.3 billion euros, free cash flow was negative 1.2 billion euros, and management now expects a full-year free cash flow loss of 1.5 billion euros.

The stock fell 2.12% to $15.73, nearing the bottom of its 52-week range. Adjusted EBIT margin decreased by approximately 10 percentage points, mainly due to Coradia Max and related concerns in Central and Northern Europe. Full-year car production guidance was cut to around 4,000 units from 4,400 to 4,500. Management acknowledged the Coradia Max problems, concentrated in six projects worth about 5 billion euros in backlog, as a major challenge.

To address liquidity concerns, Alstom introduced a new 2 billion euro credit facility and holds 1.6 billion euros in cash. Despite overall revenue growth, the margin collapse overshadowed top-line progress, highlighting the need for swift action from management.