Business · Companies · 1 hr ago
Alstom cuts forecasts again after delays to German train projects
French trainmaker Alstom cut its forecasts for a second time this year after delays on major projects.
The problems centre on Coradia Max regional trains ordered by several German states, including Baden-Württemberg and Lower Saxony.
Technical issues and extra testing delayed certification and deliveries, disrupting other projects and leading to penalties.
Alstom now expects an operating profit margin of about 1% for the financial year, down from 6.5%, and a cash outflow of €1.5 billion instead of a cash inflow.
It also lowered its production target to about 4,000 train cars, from a previous range of 4,400 to 4,500.
The updated outlook sent Alstom shares down sharply in Paris, while the company said it would review its project management and seek to reduce costs and simplify processes.
Alstom plans to cut about €2 billion in debt through asset sales, and will publish its full financial results on November 17.
Alstom cut its full-year forecast for the second time this year, citing delays on major train projects in Germany.
The French trainmaker now expects an adjusted operating margin of about 1%, down from 6.5%.
It forecast a free cash outflow of €1.5 billion, instead of the previously expected inflow.
Alstom also reduced its production target to about 4,000 railcars from 4,400 to 4,500.
Its shares fell sharply in Paris after the announcement.
- Who
- Alstom, the French trainmaker.
- What
- It cut its annual forecasts for operating margin, free cash flow and production.
- When
- November 2, 2026.
- Where
- Alstom’s projects in Germany and its shares in Paris were central to the story.
- Why
- Delays in certifying and delivering Coradia Max regional trains caused extra work and affected other projects.
This story does not have two clearly opposing sides.
Alstom lowered its annual targets because several projects were progressing slowly.
Alstom cut its annual forecasts again, citing delays on Coradia Max projects.
Alstom is scheduled to publish its full-year figures.
Alstom plans to hold a capital markets day.
- Adjusted operating margin forecast
- About 1%, down from 6.5%
- Free cash flow forecast
- €1.5 billion outflow, instead of an expected inflow
- Annual production target
- About 4,000 railcars, down from 4,400–4,500
- Share-price fall
- Up to 30% in Paris; Handelsblatt reported a 28.3% fall in early trading
- Debt-reduction plan
- About €2 billion
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What people are saying
Since my appointment as chief executive in April 2026, I have called for a thorough identification and systematic reporting of risks and opportunities at project level
domino effect
not only problems in development
neither efficient nor effective