French rail manufacturer Alstom has lowered its 2026/27 financial outlook for a second time after technical problems and a longer approval process for its Coradia Max regional-train programme in Germany weighed on performance.
Preliminary results released on November 2 showed the group’s adjusted operating margin at about minus 4% in the first half of the financial year, compared with 6.4% a year earlier. Alstom now expects a full-year margin of around 1%, down from its previous forecast of 6.5%.
The company also expects free cash flow to turn into an outflow of €1.5 billion, reversing its earlier positive forecast, and set a deleveraging objective of about €2 billion. Its production target has been reduced to around 4,000 rail cars from a previous range of 4,400 to 4,500.
Alstom said additional technical issues and testing requirements for Coradia Max affected the programme, while reviews identified execution risks and extra work on other projects carried out for and from Germany. First-half sales rose to €9.3 billion and order intake reached €11 billion.
The company said its priority was to improve project delivery and operational discipline, with the aim of normalising performance from the next financial year.
