# Alstom Cuts Fiscal 2026/27 Adjusted EBIT Margin Outlook to About 1%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/46363
Published: 2026-11-02T11:55:35.000Z
Updated: 2026-11-02T11:55:35.000Z
Section: Business

> First-half sales rose 3% to €9.3 billion, while adjusted EBIT margin fell to about -4% from 6.4% a year earlier.

Alstom cut its fiscal 2026/27 adjusted EBIT margin target to about 1% after first-half results showed a margin of about -4%, and forecast a €1.5 billion free cash flow outflow.

The railmaker lowered its margin forecast from 6.5% and changed its free cash flow outlook from positive. It also reduced its production target to about 4,000 rail cars, down from a range of 4,400 to 4,500, and trimmed its organic sales growth forecast to the low- to mid-single digits from about 5%.

First-half sales rose 3% to €9.3 billion. Alstom’s adjusted EBIT margin was about -4%, compared with 6.4% a year earlier, and free cash flow was an outflow of €1.248 billion. The company produced 1,860 cars, down 8% from the same period a year earlier.

Alstom attributed the outlook revision to execution issues on Coradia Max and other projects involving Germany. The company cited additional technical issues and testing requirements on Coradia Max, along with effects on other projects executed for and from Germany.

Net debt stood at €1.1 billion as of Sept. 30, up from €0.4 billion on March 31. Alstom’s board is reviewing options to reduce debt by about €2 billion by September 2027.

CEO Martin Sion said Alstom aims to “normalise the Group’s performance from next fiscal year.” The company expects performance to normalize from fiscal 2027/28, with adjusted EBIT trending toward 8% to 10% over the medium term.

Alstom’s unsponsored over-the-counter American depositary receipt, ALSMY, closed at $1.70 on Oct. 30, down 6 cents, or 3.41%. The quote was recorded at 3:58 p.m. ET (7:58 p.m. UTC), before the Nov. 2 outlook update. Each ADR represents one-tenth of an ordinary share.