KSA Business: Alstom secures €460m deal for Riyadh Metro expansion

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 signed a €460M contract with the Royal Commission for Riyadh City to supply additional driverless metro trains for Lines 3, 4, and 6, expanding capacity and improving service frequency. The order builds on Alstom's existing partnership and 116 trains already delivered for Riyadh's metro network.

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.