Alstom support Riyadh's next chapter of mobility with additional driverless metro trains

Alstom signed a €460M contract with the Royal Commission for Riyadh City to supply driverless metro trains for Riyadh's Lines 3, 4, and 6, expanding the existing fleet. The deal, valued at $585.5M including VAT, will be recognized in Q2 of Alstom's 2026/27 financial year. The new trains aim to increase capacity and service frequency, according to Alstom.

Alstom SA (ALSMY) cut its full-year adjusted EBIT margin guidance to around 1% due to issues with its Coradia Max projects, which now have negative gross margins. The company plans a EUR2 billion deleveraging plan, with most of the impact coming from Coradia and German projects. CEO Martin Sion expressed confidence in resolving Coradia's homologation timeline, while CFO Bernard Delpit noted no material write-downs are expected on contract assets.

Alstom's shares fell to €11.02 before rebounding to €11.22, a 0.81% gain, after a 30.7% drop over a week. The decline followed revised annual targets, with the adjusted EBIT margin falling to 1% and free cash flow expected at -€1.5B. Goldman Sachs and Barclays cut price targets below €10.

Alstom's stock dropped ~5% after J.P. Morgan and Citi downgraded it following a guidance cut due to technical and production issues, including with Coradia products.

Alstom's shares dropped ~5% after J.P. Morgan and Citi downgraded the stock, following the company's reduced guidance due to technical and production issues with products like Coradia.

Alstom's shares fell 6% after J.P. Morgan and Citi cut ratings, citing persistent margin pressure. The company slashed its full-year guidance, including adjusted core margin (1% vs. 6.5%) and free cash flow (€1.5B outflow). Issues with the Coradia Max project in Germany are the primary cause. Both banks expect delayed cash flow recovery and further earnings downgrades.