Alstom has reduced financial outlook for 2026/27

JPMorgan downgraded Alstom (EPA:ALO, OTC:ALSMY) to Neutral, cutting its price target to EUR15.60 from EUR28.00. The move follows Alstom's profit warning, including EUR1 billion in charges, and guidance below consensus. The stock has fallen 28% in a week. JPMorgan cited delayed cash flow recovery and potential risks to second-half guidance. Alstom's deleveraging plan aims to maintain its credit rating.

Alstom (ALO IM) shares fell 26.63% to €11.60 after lowering its fiscal year forecasts. The company now expects an adjusted operating margin of 1% (down from 6.5%) and reduced train production to 4,000 units. Free cash flow is projected to be -€1.5B. Issues include certification delays and cost overruns on the Coradia Max platform, as well as broader project execution difficulties.

Alstom shares fell 28% after the French train maker cut profit, cash flow, and sales forecasts, citing delays in German contracts. The company expects negative free cash flow of €1.5B and a 1% profit margin. Alstom plans to reduce debt by €2B and address execution issues. Its shares have dropped 55% this year.

Alstom shares fell 25% after the company cut its earnings outlook due to delays and costs tied to its Coradia Max trains. It now expects a 1% operating margin and a 1.5 billion euro cash burn. Analysts expect significant earnings cuts and potential asset sales.

Alstom (ALO IM) cut its fiscal 2026/27 margin target to 1% from 6.5% due to delays in its Coradia Max train platform. The company expects negative free cash flow of €1.5B. First-half 2026/27 adjusted EBIT margin was -4%, down from 6.4% a year earlier, driven by gross margin adjustments on German contracts. Alstom now forecasts lower car production and organic sales growth, with full-year margin recovery to 6.5% in the second half.

Alstom reduced its production forecast for the year to 4,000 carriages and expects an adjusted operating margin of 1%, down from previous targets. The company anticipates a cash shortfall of 1.5 billion euros due to production issues with Coradia Max trains, leading to contractual penalties. Alstom plans cost cuts and debt reduction, including potential asset disposals. Shares fell over 27% in Paris trading.