Alstom Balances Riyadh Windfall Against Margin Pressure as Debt-Reduction Review Begins
Published on 11/14/2026 at 16:42 | Editorial boerse-global.de
Alstom has disclosed a €27.6 billion order intake alongside €19.2 billion in revenue for fiscal year 2025–26, figures published Thursday in its report on the company's ecological, social and economic impact. The same disclosure came as the French rail manufacturer confirmed it is exploring options to trim roughly €2 billion of debt, with September 2027 set as the target horizon.
The debt review follows a downgraded full-year outlook issued on 2 November — a revision that prompted a negative rating outlook, which runs until November 2028. Under the revised guidance, Alstom expects an adjusted operating margin of about 1% for fiscal year 2026/27 and free cash flow outflow of €1.5 billion.
Riyadh Order to Land in Fiscal 2026/27
Central to the company's recovery case is a contract signed on 6 November with the Royal Commission for Riyadh City. Valued at approximately €460 million, the deal covers additional driverless trains for three lines of the Riyadh metro and their integration into the existing network. Alstom expects to book the order in the second quarter of fiscal year 2026/27.
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The Saudi award sits alongside a steady stream of project milestones. Passenger service began yesterday on a 7.5-kilometre section of Bengaluru's Pink Line, equipped with Alstom signalling and automatic train operation to the GoA2 standard; the launch covers the prioritized stretch of the corridor designated Reach 6. On Thursday, the company also started manufacturing additional driverless Metropolis metro cars for Chennai under a €135 million contract for the network's second expansion phase, which includes 15 years of comprehensive maintenance once the warranty period ends.
Portuguese Bid and Italian Investment
Alstom will put forward its Avelia Stream for the tender to build the high-speed line between Porto and Lisbon, the company said Thursday. The train is designed for a maximum operating speed of 300 kilometres per hour.
In Italy, the group opened a maintenance facility for trains and locomotives at its Vado Ligure site on Monday, where it also commissioned a control centre for European Traxx fleets. The Italian industrial plan earmarks more than €63 million of investment for the 2024–2026 period.
First-Half Figures Due 17 November
Investors will get a closer look at the balance sheet on 17 November, when Alstom publishes detailed first-half results for fiscal year 2026/27. The prior half-year set a low bar: an adjusted operating margin of around minus 4% and negative free cash flow of €1.25 billion.
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