Alstom Cuts Outlook, Shares Plunge 27%

Alstom shares plunged after the French train maker sharply cut its fiscal 2026/27 outlook, citing technical, industrialization and execution problems with Coradia Max trains and other German projects. The company now expects an adjusted EBIT margin of about 1%, down from roughly 6.5%, and negative free cash flow of €1.5 billion instead of positive cash flow; it also lowered its production target to about 4,000 cars. In the first half, Alstom reported an adjusted EBIT margin of around -4%, free cash flow of roughly -€1.25 billion and an 8% decline in car production, despite €11 billion in orders and 2% organic sales growth. CEO Martin Sion is reviewing troubled projects and operational processes, while the company has outlined a debt-reduction objective of about €2 billion and aims to normalize performance from fiscal 2027/28.