French train manufacturer Alstom announced that in the first half of the 2025/26 fiscal year, it performed above expectations thanks to strong demand, particularly in North America, and high-performing rail systems and signaling divisions. This positive outlook caused the company’s shares to rise more than 4% during early trading in Paris on Friday.
Acceleration in Financial Results
Group sales increased by 3.2% compared to the previous year, reaching €9.06 billion, supported by contributions from all product lines; organic growth was even stronger at 7.9%. Profitability showed a sharper improvement: adjusted Operating Profit Before Interest and Tax (FVÖK) rose by 13% to €580 million, and operating margin increased from 5.9% to 6.4%. The most notable development was in net profit; after €53 million in the same period last year, it surged sharply to €220 million.
Henri Poupart-Lafarge, CEO, summarized the company’s performance by saying, “Recent commercial successes in the Americas and in high-speed rail underline the strength of Alstom’s business model.”
Strong Order Backlog and Upgraded Outlook
Alstom’s order backlog reached €96.1 billion, providing strong visibility for future sales. During this period, total new orders amounted to €10.5 billion, with significant contracts such as Long Island Rail Road and NJ Transit in the United States boosting order intake in the Americas from €0.9 billion to €3.5 billion. The order-to-bill ratio of 1.2 indicates that the company is receiving more orders than it is billing.
In light of these strong results, Alstom upgraded its organic sales outlook from the previous range of 3%-5% to above 5%. Citing healthy order backlog and ongoing demand for sustainable mobility, the company stated it is “ready for a solid second half”. Its full-year targets, including approximately 7% adjusted FVÖK margin and free cash flow between €200 million and €400 million, remain unchanged.
