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FRANCE, 27 July 2023: Alstom, the global leader in smart and sustainable mobility, has reported its financial results for the first quarter of the fiscal year 2023/24 (from 1 April to 30 June 2023). During this period, Alstom received orders amounting to USD 4.32bn (Euro 3.9bn) and recorded sales of USD 4.65bn (Euro 4.2bn), showing a 4.3% increase compared to the same period last year. The backlog as of 30 June 2023 stands at USD 96.28bn (Euro 87bn), providing strong visibility for future sales.
Order Intake
In Q1 2023/24, Alstom received orders worth USD 4.32bn, showing a decline of 30.8% compared to Q1 2022/23. However, this decrease was expected due to a landmark contract awarded in the previous year. Services, Signalling, and Systems accounted for 64% of the total order intake during the quarter. Europe remained the largest contributor, representing 48% of the Group’s total order intake.
Alstom secured significant projects during the first quarter of the fiscal year. In Romania, the company, along with Gulermak and Arcada, was awarded a contract to construct Cluj-Napoca Metro Line 1, valued at around USD 1.99bn (Euro 1.8bn). In the US, Alstom signed a contract with SEPTA to deliver 130 electric streetcars in Philadelphia, valued at over USD 738m (Euro 667m). Additionally, Alstom, in collaboration with Colas Rail, won a contract for the extension of the North-South Commuter Railway project in the Philippines, with the company’s share worth approximately USD 1.11bn (Euro 1bn).
Sales Performance
Sales for Q1 2023/24 reached USD 4.65bn (Euro 4.2bn), marking a 4.3% increase over Q1 2022/23. The Rolling Stock segment contributed USD 2,539m (Euro 2,294m) in sales, up 5.5% from the previous year. Signalling sales stood at USD 663m (Euro 599m), reflecting a 13% increase. However, Systems reported a 16% decrease in sales at USD 361m (Euro 326m), mainly due to the completion of certain projects during the quarter.
Outlook and Objectives
Alstom reaffirms its short and mid-term targets, with a book-to-bill ratio above 1 for FY 2023/24. The company expects sales growth consistent with its mid-term guidance, aiming for a Compound Annual Growth Rate (CAGR) of over 5% from 2020/21 to 2025/26. Alstom aims to achieve an adjusted EBIT margin between 8% and 10% from 2025/26 onwards, supported by operational excellence initiatives and strong margins on new orders.
Sustainability Efforts
Alstom is actively working towards reducing its carbon footprint and promoting green mobility. The company’s CO2 emissions reduction targets have been validated by the SBTi (Science Based Targets initiative) in line with the Paris Agreement goals. Additionally, Alstom has signed a Power Purchase Agreement for a solar farm in Spain, covering 80% of its electricity consumption in Europe.
Conclusion
Alstom’s Q1 2023/24 results show a decline in orders compared to the previous year due to the completion of a significant contract. However, the company’s sales performance remains positive, and it continues to secure important projects worldwide. Alstom’s commitment to sustainability and innovation positions it as a leader in smart and green mobility. The company’s financial trajectory for FY 2023/24 and mid-term objectives for FY 2025/26 remain on track, showcasing its resilience and focus on future growth.
