Alstom’s share price plummets on the Paris Stock Exchange following the latest downward revision to its guidance

(Il Sole 24 Ore Radiocor) - The latest downward revision to the guidance for the 2026–2027 financial year has sent Alstom’s share price plummeting on the Paris Stock Exchange, where the railway group’s shares fell by more than 30 per cent. In the first half of the financial year, ending 30 September, the company reported revenue of 9.3 billion (+3 per cent), with an adjusted EBIT margin of around -4 per cent, compared with a positive margin of 6.4 per cent a year earlier.

The figures are particularly affected by production difficulties relating to the Coradia Max programme for Germany. For the full financial year, Alstom now forecasts an adjusted EBIT margin of around 1 per cent, compared with the 6.5 per cent previously indicated. Organic revenue growth has also been revised downwards and is now expected to be in the “low to mid single digits”, compared with a previous guidance of around 5 per cent. Finally, free cash flow is expected to be -1.5 billion, whereas it was previously forecast to be positive. Alstom had already announced a downward revision of its guidance back in April. Alstom now expects to produce around 4,000 carriages over the full financial year, compared with previous estimates of between 4,400 and 4,500.