Alstom cuts 2026/27 guidance again as German train delays and Coradia Max problems weigh

Second guidance cut this year

Alstom cut its guidance for the 2026/27 financial year on Monday, 2 November 2026, after a first half weighed down by execution problems on several projects in Europe. The group reported revenue of 9.3 billion euros for the six months to 30 September, up 3%, but its adjusted EBIT margin fell to about -4% from 6.4% a year earlier. Alstom attributed most of the drop to revisions of gross margins on projects executed for and by Germany. For the full year it now expects an adjusted EBIT margin of about 1%, down from the 6.5% it had previously indicated. The first-half figures were published ahead of the planned schedule.

Previous guidance6.5%

Current guidance1%

Previous guidance

6.5 %

Current guidance

1 %

Data from the article text

Cash, sales and debt

Free cash flow is now expected at minus 1.5 billion euros for the full year, where earlier guidance had been positive. Organic revenue growth is now forecast at low to mid single digits, down from about 5%, and sales growth is put at between 2% and 4% for the 12 months to March. Alstom also plans to cut its debt by about 2 billion euros and says it is examining all possible options to reach that goal. Bloomberg reports that the measures include possible divestments, and that penalties linked to delays on key German projects weighed on margins and cash flow. The order book remains well stocked.

Coradia Max and production

Execution difficulties on the Coradia Max platform, a regional electric train programme aimed at European customers including Germany, led to a production interruption in the first quarter. Alstom produced 1,860 cars in the first half, down 8%. It now expects output of around 4,000 cars for 2026/27, against the 4,400 to 4,500 it anticipated before. Earlier in the year the group had already lowered its performance targets, shortly after new management took over.

New management response

Martin Sion became chief executive in April 2026, succeeding Henri Poupart-Lafarge. He said he had asked for a rigorous identification of risks and opportunities across projects, with dedicated expert teams on the most critical ones, including Coradia Max. In the company statement he tied the announcement to that work:

“Today's announcement reflects the outcome of this exercise, with the aim of normalising the group's performance from the next fiscal year.”

Alstom also announced an ongoing review of its organisational and operational models, with decisions due by early 2027. Monday's warning is the second since Sion's arrival in April.