Alstom releases financial results for the 2nd quarter of the Financial Year 2022-23

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In the first half 2022/23 (from 1 April to 30 September 2022), Alstom booked €10.1 billion of orders. The Group sales reached €8.0 billion, in line with the targeted trajectory, resulting in a strong book-to-bill ratio at 1.25.

More Details:

  • The backlog reached €85.9 billion, providing strong visibility on future sales.
  • Alstom’s adjusted EBIT was €397 million, equivalent to a 4.9% aEBIT margin. Adjusted net profit was €179 million and free cash flow was €(45) million for the half-year.

“We have delivered a strong commercial performance during this first half, marked notably by three new wins for our Coradia StreamTM regional train in Germany, Romania and Spain, and a remarkable level of order intake in Services. Market momentum remains very positive with customers confirming their investment plans in all regions. Our operational performance continues to improve as we progress with the integration of Bombardier Transportation according to plan. The quality of our backlog is therefore progressing, resulting in achieved targets and improved profitability despite a challenging macro environment. Confident in the resilience of our business model, we remain fully committed to our 2025 Alstom in Motion plan.” said Mr. Henri Poupart-Lafarge, Chairman of the Board of Directors and Chief Executive Officer of Alstom.


  • During the first half of fiscal year 2022/23, the Group recorded €10.1 billion in orders, with significant commercial success across multiple geographies – notably in Europe, Asia/Pacific and in Africa/Middle East/Central Asia – and product lines, predominantly in Rolling Stock and Services. Orders for Services reached a new record level of €3.0 billion.
  • In Asia/Pacific, the order intake stood at €1.7 billion, compared with €1.0 billion over the same period last fiscal year. In Australia, Alstom has signed a framework contract with the Department of Transport Victoria for the provision of 100 FlexityTM low-floor Next Generation Trams (NGTs) for the largest urban tram network in the world. Valued at approximately €700 million, the contract includes the supply of rolling stock and 15-year maintenance.
  • In India, Alstom has been awarded a contract by Madhya Pradesh Metro Rail Corporation Limited (MPMRCL) to deliver 156 MoviaTM metro cars with 15 years of maintenance and the installation of latest generation of Communications Based Train Control (CBTC) signalling system as well as train control and telecommunication systems, each with seven years of maintenance, for the Bhopal and Indore metro projects.


  • Alstom’s sales were €8.0 billion for the first half of fiscal year 2022/23, representing a growth of 8% on an actual basis and 5% on an organic basis compared with Alstom sales in the same period last fiscal year. Sales related to non-performing backlog, corresponding to sales on projects with a negative margin at completion, were €1.3 billion during the first half of the fiscal year 2022/23.
  • Innovation by Pioneering Smarter and Greener Mobility for All During the first half of fiscal year 2022/23, Alstom reached important delivery milestones, and launched a range of initiatives to accelerate its transformation into a more competitive and agile group. The R&D expenses reached €231 million [5] , i.e., 2.9% of sales in the first half of fiscal year 2022/23, reflecting the Group’s continuous investments in innovation, focused on the following areas:
  • Energy efficiency: Alstom puts a high focus into aerodynamic efficiency to reduce the energy consumption on our high-speed trains. The new Avelia Horizon (known as TGV M) has a resistance reduced by 16% compared with Euroduplex, which accounts for nearly half of the energy consumption at high speed.

Efficiency at scale, Powered by Digital:

  • In the first half of fiscal year 2022/23, Alstom’s combined adjusted EBIT reached €397 million, equivalent to a 4.9% operational margin, compared with €335 million or 4.5% during the same period last fiscal year.
  • The uplift was driven from synergies generating 60bps of improvement, a favourable evolution on low performing contracts representing 10bps, increased volume and favourable mix delivering 50bps, partly offset by the effect of inflation for (80)bps.

One Alstom team Agile, Inclusive and Responsible:

  • More than ever, decarbonisation is at the heart of Alstom’s strategy. The Group is reducing its own direct and indirect emissions (scope 1 & 2) but is also committed to work with suppliers and customers (scope 3) to make its solutions Net Zero throughout their entire life cycle.
  • Alstom targets have been submitted for validation by the independent Science Based Targets initiative (SBTi) and are currently under review with expected feedback by December 2022.

Financial structure:

  • The Group’s Free Cash Flow stands at €(45) million for the first half of fiscal year 2022/23 as compared to €(1,461) million during the same period last fiscal year. As expected, the free cash flow was notably impacted by an unfavourable €(381) million change in operating working capital compared to €(1,697) million last year; owing to continued industrial ramp-up, project working capital phasing and provisions consumption.
  • On 30 September 2022, the Group recorded a net debt position of €(2,306) million, including bonds with supportive maturities and cost profile and no financial covenants.

Mid-term financial trajectory and objectives:

  • The outlook given in connection with Alstom in Motion 2025 is confirmed. Market share: By 2024/25, Alstom is aiming to grow its market share by 5 percentage points [5] by leveraging its unique strategic positioning, supported by its enlarged group momentum and its competitive offering.
  • Sales: Between 2020/21 (proforma sales of €14 billion) – and 2024/25, Alstom is aiming at sales Compound Annual Growth Rate over 5% supported by strong market momentum and unparalleled €85.9 billion backlog as of 30 September 2022, securing sales of ca. €36 to 38 billion over the next three years. Rolling stock should grow above market rate, Services at solid mid-single digit path and Signalling at high single digit path.
  • Profitability: The adjusted EBIT margin should reach between 8% and 10% from 2024/25 onwards, benefiting from operational excellence initiatives, the completion of the challenging projects in backlog while synergies are expected to deliver €400 million run rate in 2024/25 and €475 – 500 million annually from 2025/26 onwards.
  • Free Cash Flow: from 2024/25 onwards, the conversion from adjusted net profit to Free Cash Flow should be over 80% [6] driven by mid-term stability of working capital, stabilisation of CAPEX to around 2% of sales and cash focus initiatives while benefiting from volume and synergies take up.
  • Alstom will maintain its disciplined capital allocation focusing on maintaining its investment grade profile, while keeping flexibility and ability to pursue growth opportunities through focused bolt-on M&A. Alstom’s Baa2 rating with negative outlook was confirmed during Q1 2022/23 by Moody’s.
  • Alstom is committed to delivering sustained shareholder returns with a dividend pay-out ratio [7] of between 25% and 35%

Orders received:

  • A new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. When this condition is met, the order is recognised at the contract value.
  • If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments.

Adjusted net profit:

  • Following the Bombardier Transportation, Alstom decided to introduce the “adjusted net profit” indicator aimed at restating its net profit from continued operations (Group share) to exclude the impact of amortisation of assets exclusively valued when determining the purchase price allocations (“PPA”) in the context of business combination, net of the corresponding tax effect. This indicator is also aligned with market practice.

Source: Alstom- Press Release | Image Credit (representational): Alstom

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