ALSTOM UNSP (AOMU) AI Stock Analysis

ALSTOM UNSP

(Frankfurt:AOMU)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and margin reboundThe sharp 2026 revenue expansion alongside improved net and EBIT margins indicates stronger operating performance after prior losses. If sustained, this rebound can support reinvestment, improve resilience in rail projects, and provide a better base for earnings growth over the next several quarters.

Negative Factors

Weak free-cash-flow conversionPositive operating and free cash flow in 2026 is offset by a steep year-over-year deterioration and weak conversion from reported earnings. If this pattern persists, internally generated funds may be less dependable for investment, debt service, and shareholder returns than the income statement suggests.

ALSTOM UNSP (AOMU) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.05B
Dividend Yield: ―
Average Volume (3M): 3,154
Price to Earnings (P/E): 22.3
Beta (1Y): 0.86
Revenue Growth: 3.69%
EPS Growth: 98.69%
Country: Germany
Employees: 87,832
Sector: Industrials
Sector Strength: 63
Industry: Railroads

ALSTOM UNSP Business Overview & Revenue Model

Company Description

Alstom S.A., a company established in 1992 and based in Saint-Ouen, France, serves as a leading global provider of integrated solutions for the rail transport industry. Its comprehensive operations extend across diverse regions, including Europe, the...

ALSTOM UNSP Earnings Call Summary

Earnings Call Date:May 12, 2026(Q4-2026)|% Change Since:-4.76%|Next Earnings Date:Nov 16, 2026

Earnings Call SentimentNegative

The call highlighted strong commercial performance (record order intake, book-to-bill >1, organic sales growth +7%) and a constructive medium-term outlook (guidance to ~6.5% adjusted EBIT margin and positive annual free cash flow). However, significant operational execution issues—primarily in rolling stock ramp-ups and homologations—caused margin dilution, elevated costs, weaker-than-expected free cash flow (EUR 330m) and a large forecasted H1 cash outflow (~EUR 1.5bn). Management has prioritized deep operational changes and tighter planning, but near-term financial performance and cash seasonality remain material concerns.

Positive Updates

Record Commercial Momentum and Strong Order Intake

Alstom recorded approximately EUR 27.6 billion of orders for fiscal year 25-26 (management also referenced ~EUR 28 billion of order intake), delivering a book-to-bill ratio of 1.4 and a backlog of ~EUR 100 billion.

Negative Updates

Adjusted EBIT Margin Below Expectations

Adjusted EBIT margin for fiscal year 25-26 landed at around 6% (broadly stable at constant currency/scope but lower than prior year and below prior guidance), with margin pressure coming from rolling stock execution and higher R&D spend.

Company Guidance

Alstom guided for fiscal 2026‑27 to a book‑to‑bill above 1 and organic sales growth of around 5%, with adjusted EBIT margin expected to rebound to about 6.5% (versus ~6% in FY25‑26) and positive free cash flow for the year despite an expected H1 cash outflow of roughly EUR 1.5bn and a very strong H2 to offset it. Management reiterated key FY25‑26 preliminaries and liquidity metrics underpinning the outlook: orders ~EUR 27.6bn (record commercial activity ~EUR 28bn) and book‑to‑bill 1.4, backlog ~EUR 100bn, sales EUR 19.2bn (+4% reported, +7% organic), 4,284 cars produced (‑2% y/y), gross margin in the backlog 18%, free cash flow ~EUR 330m, financial net debt ~EUR 400m, gross cash EUR 2.3bn and available facilities (EUR 2.5bn and EUR 1.75bn RCFs plus a EUR 2.5bn commercial paper program), while flagging higher R&D and services CapEx and working‑capital seasonality as near‑term cash headwinds.

ALSTOM UNSP Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:AOMU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GATX	75Outperform	$6.39B	16.69	14.10%	1.43%	29.67%	25.84%
WAB	74Outperform	$46.92B	34.65	12.17%	0.42%	13.25%	16.83%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRN	63Neutral	$2.30B	7.12	29.87%	4.21%	-2.38%	248.96%
FSTR	62Neutral	$377.13M	32.89	6.49%	―	10.13%	-67.50%
GBX	59Neutral	$1.21B	15.30	4.73%	3.38%	-23.97%	-60.98%

* Industrials Sector Average

Performance Comparison

DE:AOMU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:AOMU	ALSTOM UNSP	1.60	-0.54	-25.23%
GATX	GATX Corporation	181.14	28.20	18.44%
GBX	Greenbrier Companies	39.01	-1.68	-4.14%
FSTR	L. B. Foster Company	35.85	8.91	33.07%
TRN	Trinity Industries, Inc.	29.46	3.89	15.19%
WAB	Westinghouse Air Brake Technologies Corporation	279.60	75.63	37.08%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

ALSTOM UNSP AI Stock Analysis