Alstom Q1 Sales, Orders Climb; Confirms Mid-term Targets

French speed-train maker Alstom SA (AOMFF.PK,ALS.L) reported Tuesday that its first-quarter sales surged 146 percent to 3.7 billion euros from last year's 1.51 billion euros. On a pro forma basis, sales grew 33 percent.

Alstom booked its first fully combined quarterly result with 6.4 billion euros of orders including several large orders, up 290 percent from last year's 1.65 billion euros. Pro forma orders grew 106 percent.

Europe accounted for the majority of the orders, i.e. 71 percent of the Group total.

The backlog, as of 30 June 2021, reached 76.8 billion euros, providing strong visibility on future sales.

Further, the company said that in the second half of fiscal 2022, it expects positive free cash flow driven by increased deliveries and operations stabilization. Overall, this should result in significant negative free cash flow in 2022.

Thereafter, the company expects to see yearly positive free cash flow generation towards its mid-term target of over 80 percent, driven by progressive working capital stabilization.

Looking ahead, Alstom continues to expect mid-term sales between 2021 and 2025 at Compound Annual Growth Rate over 5 percent supported by strong market momentum and unparalleled 74.5 billion euros backlog securing about 30 billion euros of sales over the next three years.

The adjusted EBIT margin is expected to reach between 8 percent and 10 percent from 2025 onwards.

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