On Nov. 2, Alstom cut its 2026–27 profit forecast, projected a €1.5 billion cash outflow and set a €2 billion debt-reduction target after problems on German rail projects weakened its finances.
The French train maker now expects its adjusted operating margin to be about 1% for the year ending in March 2027, down from its previous forecast of 6.5%. Before this change, Alstom had expected free cash flow to be positive. The new forecast marks a sharp reversal.
The debt-reduction plan aims to ease pressure on its balance sheet. Alstom blamed technical problems with its Coradia Max regional trains and longer waits for certification for the setback. It also cited effects on other projects in Germany.
During the first half of the fiscal year, its adjusted margin fell to around minus 4%. Sales rose 3% to €9.3 billion. Orders reached €11 billion.
The company lowered its annual rail-car production target from 4,400–4,500 to around 4,000. It also cut its sales-growth forecast to a low-to-middle single-digit rate. Alstom shares fell sharply after the announcement.
Investors reacted to the changed outlook and cash-flow warning. Alstom said it is reviewing its operations and how it carries out projects. It said the debt-reduction measures are intended to support its financial recovery.