Alstom S.A: FY 2024/25: Alstom delivers solid profit and cash. Medium-term ambitions confirmed.

Core Insights - Alstom reported strong financial performance for the fiscal year 2024/25, with orders of €19.8 billion and sales of €18.5 billion, resulting in a book-to-bill ratio of 1.1 [1][7] - The backlog reached €95 billion, indicating robust visibility for future sales, with a gross margin in backlog of 17.8% [1][21] - Adjusted EBIT increased by 18% to €1,177 million, with an adjusted EBIT margin of 6.4% [2][31] Financial Performance - Orders received increased by 4.7% to €19.8 billion, while sales grew by 4.9% to €18.5 billion [6][22] - Adjusted net profit rose significantly to €498 million from €44 million in the previous year [2][36] - Free cash flow turned positive at €502 million, compared to a negative €557 million in the prior year [2][37] Debt and Liquidity - The net debt position improved to €(434) million from €(2,994) million, reflecting successful deleveraging efforts [3][40] - Cash and cash equivalents stood at €2,274 million, with strong liquidity supported by undrawn revolving credit facilities [3][40] Operational Highlights - Alstom achieved record-high orders in Services and Signalling, aligning with its strategic goals [4][10] - The company mobilized around commercial, operational, and cost efficiency plans, resulting in improved backlog margins and quality indicators [4][18] - Significant contracts were awarded in Europe, particularly in Germany and France, contributing to the overall order intake [11][12] Market Outlook - For FY 2025/26, Alstom anticipates organic sales growth between 3% to 5% and an adjusted EBIT margin around 7% [7][48] - The company expects to generate at least €1.5 billion in cumulative free cash flow over three years from FY 2024/25 to FY 2026/27 [7][48] - Alstom aims for a book-to-bill ratio above 1, driven by growth in Services, Signalling, and Systems product lines [7][53] Innovation and Sustainability - Alstom continues to invest in R&D, with gross costs amounting to €704 million, representing 3.8% of sales [25] - The company is committed to decarbonization and aims for 100% renewable electricity by the end of 2025 [47] - Alstom's EU Taxonomy-aligned sales reached 66%, reflecting its leadership in low-carbon mobility solutions [45]