Alstom Reported €309 Million Loss in Fiscal Year 2023-24

Paris, France (Urban Transport News): Alstom, the renowned transport company, has disclosed a net loss of €309 million for the fiscal year 2023-24, marking a deterioration from the previous year's loss of €132 million. Furthermore, the company reported negative free cash flow amounting to €557 million, a stark contrast to the positive figure of €199 million in the preceding fiscal period.

In a meeting convened on May 7, the Alstom board opted to forego the payment of dividends for the fiscal year 2023-24. This decision aligns with the company's financial position amidst the challenging economic landscape.

Orders for Alstom during the fiscal year 2023-24 witnessed a decline of 8.4%, totaling €18.9 billion compared to €20.7 billion in the previous year. Notably, a significant portion of recent orders stemmed from the substantial €2.5 billion contract secured to supply 130 Coradia Stream EMUs, awarded in May 2022 by SFBW, the rolling stock leasing entity owned by the German state of Baden-Württemberg.

However, despite the decline in orders, Alstom's sales experienced a modest increase of 6.7%, reaching €17.6 billion in the fiscal year 2023-24 compared to €16.5 billion in the previous year. This positive trajectory was buoyed by the company's robust backlog, which stood at €91.9 billion as of March 31, 2024, indicating promising prospects for future sales.

Rolling stock production rates demonstrated an upward trend, with Alstom delivering 4,645 cars in the fiscal year 2023-24, up from 4,151 in the preceding year. This production surge contributed to an adjusted EBIT of €997 million, marking a notable 17% increase from €852 million in the prior fiscal period.

Despite these operational gains, Alstom's net debt rose to €2.99 billion as of March 31, 2024, compared to €2.13 billion the previous year. However, the company maintains a robust liquidity position, boasting €6.3 billion in liquidity and equity totaling €8.78 billion as of the same date.

To address its debt burden and maintain its investment grade rating, Alstom is actively pursuing a €2 billion deleveraging plan. This strategy includes a forthcoming €750 million hybrid bond issue and a €1 billion rights issue slated for completion by September. Additionally, the company plans to utilize approximately €1.2 billion from capital market transactions and asset disposals to repay financial debt.

In line with its restructuring efforts, Alstom has agreed to divest its conventional signaling business in North America to Knorr-Bremse, a move expected to generate proceeds of €630 million upon closure, anticipated in the upcoming summer.

Commenting on the financial performance, Alstom's chairman and CEO, Henri Poupart-Lafarge, expressed optimism, citing a robust rebound during the second half of the fiscal year. He emphasized the company's commitment to operational excellence, cost optimization, and sustainable profitability, underscoring Alstom's resilience amidst evolving market dynamics.