ALSTOM SA: Alstom’s first quarter 2024/25: deleveraging plan
delivered, Q1 orders and sales in line with FY 2024/25 trajectory,
outlook confirmed
Alstom’s first quarter 2024/25:
deleveraging plan delivered, Q1 orders and sales in line with FY
2024/25 trajectory, outlook confirmed
- Hybrid issuance and rights
issue fully executed, closing of North American conventional
signalling business disposal expected in Q2
- Order intake at €3.6
billion
- Sales at €4.4 billion, up
5.1% vs. last year, of which 5.3% organic
- Fiscal year 2024/25 outlook and mid to long-term
ambitions confirmed
23 July 2024 – Over the first
quarter of 2024/25 (from 1 April to 30 June 2024), Alstom booked
€3.6 billion of orders. The Group’s sales reached €4.4 billion in
the quarter, up 5.1% vs. last year, in line with announced growth
trajectory.
The backlog, as of 30 June 2024, settled at
€91.8 billion, providing strong visibility on future sales.
Key figures
Reported figures
(in € million) |
2023/24
Q1
|
2024/25
Q1 |
% Change
Reported |
% Change
Organic |
Orders received1 |
3,875 |
3,645 |
(5.9)% |
(5.7)% |
Sales |
4,175 |
4,389 |
+5.1% |
+5.3% |
Geographic and product breakdowns of reported orders and
sales are provided in Appendix 1.
“Alstom swiftly executed its deleveraging
plan, resulting in the upgrade by Moody’s of the outlook of its
credit rating. As expected, order volume was soft in the first
quarter, however we secured significant contract wins in Europe,
notably the Hamburg metro, together with robust margin on order
intake. The market is dynamic with a strong pipeline of
opportunities for the next three years. We see solid growth across
all product lines, with strong performance in Services during this
quarter, and we confirm our short and mid-term ambitions.”
said Henri Poupart-Lafarge, Chief Executive
Officer of Alstom.
***
Detailed review
During the first quarter of 2024/25
(from 1 April to 30 June 2024), Alstom recorded €3,645 million
in orders, compared to €3,875 million over the same period
last fiscal year.
Over three months, orders for Services, Signalling and Systems
reached 61% of the total order intake.
On a regional level, Europe accounted for 70% of the Group total
order intake. In Germany, Alstom signed a framework agreement with
Hamburger Hochbahn AG worth up to €2.8 billion. The first call-off
under this framework agreement comprises 48 metro trains and the
CBTC equipment for the first section of the U5 line, including five
of the 23 new metro stations. The call-off, booked during this
first quarter, has a volume of around €670 million.
In Italy, Alstom signed a contract with
Mercitalia Rail, a company of the Polo Logistica FS for the supply
of 70 Traxx Universal locomotives, along with 12 years of full
maintenance services. The contract is valued at over €323 million
and includes the option to supply an additional 30 locomotives and
an extension of the maintenance services.
In the United Kingdom, Alstom signed a contract
worth around €430 million for 10 new nine-car Aventra trains for
Transport for London’s Elizabeth line, along with associated
maintenance until 2046.
In the AMECA region, Alstom has announced a new
Services contract from an undisclosed customer worth approximately
€400 million. The order, received in June 2024, includes a
technical support and spares supply agreement for 12 years.
Sales were €4,389 million in Q1 2024/25
(from 1 April to 30 June 2024) versus €4,175 million in Q1 2023/24
(up 5.1% on a reported basis and 5.3% on an organic
basis).
Rolling Stock sales reached €2,338 million,
representing an increase of 2% on a reported basis and 2% on an
organic basis, driven by a ramp-up of projects in Italy, key
project deliveries in France, and strong execution performance in
the US and India, compensating for a lower cars production (965
cars versus 1,122 for the same period last fiscal year) notably due
to the end of the production of legacy projects in UK (Aventra) and
Germany.
Services delivered a sustained strong
performance and reported €1,073 million of sales, up 12% on a
reported basis and 13% on an organic basis, benefiting from an
important ramp-up of Services project in the UK, Germany and
Australia, and consistent performance in North America.
Signalling sales stood at €637 million, up 6% on
a reported basis and 6% on an organic basis, led by a consistent
execution across all regions, mainly in the US, Germany and
Australia.
In Systems, Alstom reported €341 million sales,
up 4% on a reported basis and 5% on an organic basis, on the back
of a good performance of Turnkey projects in Mexico, France and
Canada.
The book-to-bill ratio is 0.83 over the
quarter.
***
Key project deliveries
During the first quarter of 2024/25, Alstom's employees
mobilized effectively to meet the deadline for the entry into
commercial service of 3 metro lines, 2 tramway lines and RER line
extensions in the Île-de-France region, in the run-up of the sport
events organised in Paris this summer 2024.
***
Progress on the €2 billion inorganic
deleveraging plan
The hybrid bond issuance for €750 million and
the rights issue for €1 billion euros have been fully executed
during this quarter.
The preparation for the sale of the North
American conventional signalling business to Knorr-Bremse AG is
progressing well and closing is expected to take place during the
second quarter of FY 2024/25.
***
Assumptions for rest of FY
2024/25
Following execution of the deleveraging plan,
outlook for FY 2024/25 is based on following main assumptions:
- Supportive market demand
- FY 2024/25 downpayments consistent
with FY 2023/24
- End of the Bombardier
Transportation integration program in FY 2024/25
Outlook for FY 2024/25
- Book to bill above 1
- Sales organic growth: around
5%
- aEBIT margin around 6.5 %
- Free Cash Flow generation within
the €300 million to €500 million range
- Seasonality driving:
- negative FCF within a range of
€(300)m to €(500)m in H1 2024/25
- margin improvement to be more H2
weighted
***
Mid to long-term ambitions are confirmed as per
the May 8, 2024, full year announcement.
***
Financial calendar
13 November
2024 |
2024/25
Half-Year Results |
***
Analysts Conference Call
Alstom is pleased to invite the analysts to a
conference call presenting its first quarter orders and sales for
the fiscal year 2024/25 on Tuesday 23 July at 6:30 pm (Paris time),
hosted by Bernard Delpit, EVP and CFO.
A live audiocast will also be available on
Alstom’s website: Alstom’s first quarter orders and sales for FY
2024/25.
To participate in the Q&A session (audio
only), please use the dial-in numbers below:
- France: +33 (0) 1
7037 7166
- UK: +44 (0) 33 0551
0200
- USA: +1 786 697
3501
- Canada: 1 866 378
3566 (toll free)
Quote ALSTOM to the operator to
be transferred to the appropriate conference.
***
Alstom™, Aventra™, Coradia™, Coradia Stream™,
Traxx™ and Traxx Universal™ are protected trademarks of the Alstom
Group.
1 Non - GAAP. See definition in the
appendix.
|
About Alstom
|
|
|
Alstom commits to contribute to a low carbon future by developing
and promoting innovative and sustainable transportation solutions
that people enjoy riding. From high-speed trains, metros,
monorails, trams, to turnkey systems, services, infrastructure,
signalling and digital mobility, Alstom offers its diverse
customers the broadest portfolio in the industry. With its presence
in 64 countries and a talent base of over 84,700 people from 184
nationalities, the company focuses its design, innovation, and
project management skills to where mobility solutions are needed
most. Listed in France, Alstom generated revenues of €17.6 billion
for the fiscal year ending on 31 March 2024.
For more information, please visit www.alstom.com |
|
|
|
Contacts |
Press:
Philippe MOLITOR - Tel. : +33 (0)7 76 00 97 79
philippe.molitor@alstomgroup.com
Thomas ANTOINE - Tel.: +33 (0) 6 11 47 28 60
thomas.antoine@alstomgroup.com
Investor relations:
Martin VAUJOUR – Tel.: +33 (0) 6 88 40 17 57
martin.vaujour@alstomgroup.com
Estelle MATURELL ANDINO – Tel.: +33 (0)6 71 37 47 56
estelle.maturell@alstomgroup.com
|
|
This press release contains forward-looking
statements which are based on current plans and forecasts of
Alstom’s management. Such forward-looking statements are relevant
to the current scope of activity and are by their nature subject to
a number of important risks and uncertainty factors (such as those
described in the documents filed by Alstom with the French AMF)
that could cause reported results to differ from the plans,
objectives and expectations expressed in such forward-looking
statements. These such forward-looking statements speak only as of
the date on which they are made, and Alstom undertakes no
obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.
This press release does not constitute or
form part of a prospectus or any offer or invitation for the sale
or issue of, or any offer or inducement to purchase or subscribe
for, or any solicitation of any offer to purchase or subscribe for
any shares or other securities in the Company in France, the United
Kingdom, the United States or any other jurisdiction. Any offer of
the Company’s securities may only be made in France pursuant to a
prospectus having received the approval from the AMF or, outside
France, pursuant to an offering document prepared for such purpose.
The information does not constitute any form of commitment on the
part of the Company or any other person. Neither the information
nor any other written or oral information made available to any
recipient, or its advisers will form the basis of any contract or
commitment whatsoever. In particular, in furnishing the
information, the Company, the Joint Global Coordinators, their
affiliates, shareholders, and their respective directors, officers,
advisers, employees or representatives undertake no obligation to
provide the recipient with access to any additional
information.
APPENDIX 1A – GEOGRAPHIC
BREAKDOWN
Reported figures |
2023/24 |
% |
2024/25 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Europe |
1,850 |
48% |
2,570 |
70% |
Americas |
848 |
22% |
318 |
9% |
Asia / Pacific |
1,168 |
30% |
237 |
7% |
Middle East / Africa |
9 |
0% |
520 |
14% |
Orders by destination |
3,875 |
100% |
3,645 |
100% |
Reported figures |
2023/24 |
% |
2024/25 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Europe |
2,516 |
60% |
2,494 |
57% |
Americas |
772 |
19% |
894 |
20% |
Asia / Pacific |
546 |
13% |
624 |
14% |
Middle East / Africa |
341 |
8% |
377 |
9% |
Sales by destination |
4,175 |
100% |
4,389 |
100% |
APPENDIX 1B – PRODUCT BREAKDOWN
Reported figures |
2023/24 |
% |
2024/25 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Rolling stock |
1,387 |
36% |
1,410 |
39% |
Services |
554 |
14% |
1,199 |
33% |
Systems |
1,465 |
38% |
119 |
3% |
Signalling |
469 |
12% |
917 |
25% |
Orders by product line |
3,875 |
100% |
3,645 |
100% |
Reported figures |
2023/24 |
% |
2024/25 |
% |
(in € million) |
3 months |
Contrib. |
3 months |
Contrib. |
Rolling stock |
2,294 |
55% |
2,338 |
53% |
Services |
956 |
23% |
1,073 |
24% |
Systems |
326 |
8% |
341 |
8% |
Signalling |
599 |
14% |
637 |
15% |
Sales by product line |
4,175 |
100% |
4,389 |
100% |
APPENDIX 2 - NON-GAAP FINANCIAL
INDICATORS DEFINITIONS
This section presents financial indicators used by the Group that
are not defined by accounting standard setters.
Orders received
A new order is recognised as an order received only when the
contract creates enforceable obligations between the Group and its
customer. When this condition is met, the order is recognised
at the contract value. If the contract is denominated in a currency
other than the functional currency of the reporting unit, the Group
requires the immediate elimination of currency exposure using
forward currency sales. Orders are then measured using the spot
rate at inception of hedging instruments.
Book-to-Bill
The book-to-bill ratio is the ratio of orders received to the
amount of sales traded for a specific period.
Gross margin % on backlog
Gross Margin % on backlog is a KPI that presents the expected
performance level of firm contracts in backlog. It represents the
difference between the sales not yet recognized and the cost of
sales not yet incurred from the contracts in backlog. This % is an
average of the portfolio of contracts in backlog and is meaningful
to project mid- and long-term profitability.
Adjusted Gross Margin before
PPA
Adjusted Gross Margin before PPA is a KPI that presents the level
of recurring operational performance. It represents the sales minus
the cost of sales, adjusted to exclude the impact of amortisation
of assets exclusively valued when determining the PPA in the
context of business combination as well as significant,
non-recurring “one off” items that are not expected to occur again
in subsequent years.
EBIT before PPA
Following the Bombardier Transportation acquisition and with effect
from the fiscal year 2021/22 condensed consolidated financial
statements, Alstom decided to introduce the “EBIT before PPA” KPI
aimed at restating its Earnings Before Interest and Taxes (“EBIT”)
to exclude the impact of amortisation of assets exclusively valued
when determining the PPA in the context of business combination.
This KPI is also aligned with market practice.
Adjusted EBIT
Adjusted EBIT (“aEBIT”) is the Key Performance Indicator to present
the level of recurring operational performance. This indicator is
also aligned with market practice and comparable to direct
competitors.
Starting September 2019, Alstom has opted for the inclusion of the
share in net income of the equity-accounted investments into the
aEBIT when these are considered to be part of the operating
activities of the Group (because there are significant operational
flows and/or common project execution with these entities). This
mainly includes Chinese joint-ventures, namely CASCO joint-venture
for Alstom as well as, following the integration of Bombardier
Transportation, Alstom Sifang (Qingdao) Transportation Ltd.
(formerly Bombardier Sifang), Bombardier NUG Propulsion System Co.
Ltd and Changchun Changke Alstom Railway Vehicles Company Ltd
(formerly Changchun Bombardier).
aEBIT corresponds to Earning Before Interests and Tax adjusted for
the following elements:
- net
restructuring expenses (including rationalization costs)
- tangibles and
intangibles impairment
- capital gains or
loss/revaluation on investments disposals or controls changes of an
entity
- any other
non-recurring items, such as some costs incurred to realize
business combinations and amortization of an asset exclusively
valued in the context of business combination, as well as
litigation costs that have arisen outside the ordinary course of
business
- and including
the share in net income of the operational equity-accounted
investments
A non-recurring item is a “one-off” exceptional
item that is not supposed to occur again in following years and
that is significant.
Adjusted EBIT margin corresponds to Adjusted EBIT expressed as a
percentage of sales.
EBITDA before PPA + JV
dividends
EBITDA before PPA plus dividends from joint ventures is the EBIT
before PPA, before depreciation and amortisation, with the addition
of the dividends received from joint ventures.
Adjusted net profit
The “Adjusted Net Profit” KPI restates Alstom’s net profit from
continued operations (Group share) to exclude the impact of
amortisation of assets exclusively valued when determining the PPA
in the context of business combination, net of the corresponding
tax effect. This indicator is also aligned with market
practice.
Free cash flow
Free Cash Flow is defined as net cash provided by operating
activities less capital expenditures including capitalised
development costs, net of proceeds from disposals of tangible and
intangible assets. Free Cash Flow does not include any proceeds
from disposals of activity.
The most directly comparable financial measure to Free Cash Flow
calculated and presented in accordance with IFRS is net cash
provided by operating activities.
Funds from Operations
Funds from Operations “FFO” in the EBIT to FCF statement refers to
the Free Cash Flow generated by Operations, before Working Capital
variations.
Contract and Trade Working
Capital
Contract Working Capital is the sum of:
- Contract Assets & Liabilities,
which includes the Customer Down-Payments
- Current provisions, which includes
Risks on contracts and Warranties
Trade Working Capital is the Working Capital that is not
strictly related to contract. It includes all the elements of the
working capital but
- Income Tax receivables and
payables
- Restructuring provisions
Net cash/(debt)
The net cash/(debt) is defined as cash and cash equivalents,
marketable securities and other current financial asset, less
borrowings.
Pay-out ratio
The pay-out ratio is calculated by dividing the amount of the
overall dividend with the “Adjusted Net profit from continuing
operations attributable to equity holders of the parent, Group
share” as presented in the management report in the consolidated
financial statements.
Organic basis
This press release includes performance indicators presented on a
reported basis and on an organic basis. Figures given on an organic
basis eliminate the impact of changes in scope of consolidation and
changes resulting from the translation of the accounts into Euro
following the variation of foreign currencies against the Euro.
The Group uses figures prepared on an organic basis both for
internal analysis and for external communication, as it believes
they provide means to analyse and explain variations from one
period to another. However, these figures are not measurements of
performance under IFRS.
|
Q1 2023/24 |
|
Q1 2024/25 |
|
|
|
|
(in € million) |
Reported
figures |
Exchange
rate and scope impact |
Comparable
Figures |
|
Reported
figures |
|
|
% Var Act. |
% Var Org. |
Orders |
3,875 |
11 |
3,864 |
|
3,645 |
|
|
(5.9)% |
(5.7)% |
Sales |
4,175 |
7 |
4,168 |
|
4,389 |
|
|
5.1% |
5.3% |
- PR Alstom Q1 2024-25 Results- EN - Final
Alstom (TG:AOMD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Alstom (TG:AOMD)
Historical Stock Chart
From Aug 2023 to Aug 2024