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Outstanding results for Alstom in the first half of 2016/17

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  • Continued strong commercial and operational performance
  • Exceptionally high free cash flow 
  • 2020 objectives confirmed

Between 1 April and 30 September 2016, Alstom booked 6.2 billion of orders leading to a new record-breaking backlog of 33.6 billion. Over the same period, sales were up 8% (7% organically), amounting to 3.6 billion. The adjusted EBIT grew from 167 million to 200 million, representing a 20% increase, with an adjusted EBIT margin of 5.6%. The net income (Group share) reached 128 million. In first half of fiscal year 2016/17, free cash flow was exceptionally high at 333 million. 


Alstom started the fiscal year 2016/17 with excellent results. Commercial performance was very dynamic including the booking of two contracts for a new generation of high-speed train in the US and the extension of the Dubai metro system. Operational performance was sustained with organic sales growth of 7% and adjusted EBIT up by 20%. Free cash flow was exceptionally high, with several large down-payments. These results demonstrate the success of Alstoms strategy and allow us to confirm the 2020 objectives, said Henri Poupart-Lafarge, Alstoms Chairman & Chief Executive Officer.

2020 strategy on track

Alstom 2020 strategy is based on the five following pillars:

1. Customer focused organisation

The Group confirmed its leading position with a high level of orders of 6,212 million booked in the first half of fiscal year 2016/17. This compares to 3,897 million registered over the same period last year.

Alstom was awarded several major projects during the semester. The Group signed contracts with Amtrak in the United States for new generation of Avelia high-speed train and services. The Alstom-led consortium Expolink won a contract with RTA for the extension of Dubai Metros Red line. Other commercial successes for this first half included Coradia regional trains in Netherlands and Italy, high-speed Avelia Pendolino trains with maintenance in Italy, new metro cars in Peru, as well as maintenance contracts in Canada and in the United Kingdom. 

The backlog reached a new record high and amounted to 33,570 million on 30 September 2016.

2. Complete range of solutions

In first half of fiscal year 2016/17, Alstoms sales were up 8% (7% organically) and reached 3,570 million. The book-to-bill remained strong, above 1.7.

Signalling, systems and services represented 54% of sales in first half of 2016/17, in line with 2020 objective of 60%. Signalling sales growth of 33% was supported by the integration of GE Signalling and deliveries in Canada. Systems sales increased by 20% with progress of Riyadh metro system in Saudi Arabia, urban systems deliveries in Brazil and Qatar, as well as infrastructure projects in the United Kingdom. Services slightly decreased to 0.7 billion of sales with an adverse forex impact on maintenance contract in the United Kingdom. Trains reached 1.6 billon of sales with deliveries of suburban, regional and high-speed trains in Europe, on-going execution of the PRASA project in South Africa and tramway deliveries in Algeria.

3. Value creation through innovation

Alstom sustained its level of research and development (excluding capitalisation and amortisation) at 62 million, i.e. 1.7% of sales, in first half of fiscal year 2016/17. Main programmes included the renewal of mainline and urban train ranges, signalling, and predictive maintenance. With the high-speed train contract with Amtrak in the US, Alstom will deliver a new generation of train with high-level of innovation for both passenger and operator.

4. Operational and environmental excellence

Alstom delivered an adjusted EBIT of 200 million in first half of 2016/17, compared to 167 million over the same period last year, representing a 20% increase. The adjusted EBIT margin reached 5.6% compared to 5.1% in first half of 2015/16. This continuous improvement was driven by volume increase, portfolio mix and on-going initiatives for operational excellence. During the first half of 2016/17, the net income (Group share) amounted to 128 million.

Alstom invested 43 million in capital expenditures in first half of 2016/17 in order to strengthen its global footprint in the emerging markets while modernising its existing facilities. 

The Group free cash flow was exceptionally high at 333 million, benefitting from a combination of several large down-payments and phasing of both capex and legacy cash-out. Alstom had a net cash level of 54 million at 30 September 2016, compared to a net debt position of 203 million at 31 March 2016.

Alstom also achieved a 7% reduction in the overall energy consumption of its portfolio compared to a year ago. The Group is on track to meet its objectives to reduce the energy consumption of its solutions by 20% by 2020.

5. Diverse and entrepreneurial people

Alstom pursues its strategy to reflect its passenger base: the company has the ambition to increase diversity, aiming for 25% of Management or Professional roles to be occupied by women, and for 50% of senior management and the talent pool to be non-European within five years. Alstoms employees around the world all share the same culture, underpinned by strong values, integrity and ethics.

Objectives for 2020 confirmed

By 2020 sales should grow organically by 5% per year.
Adjusted EBIT margin should reach around 7% by 2020 driven by volume, portfolio mix and results of operational excellence actions.
By 2020, Alstom expects c. 100% conversion from net income into free cash flow.

 The half-year financial report, as approved by the Board of Directors, in its meeting held on 8 November 2016, can be found on Alstoms website at The accounts have been audited and certified.

This press release contains forward-looking statements which are based on current plans and forecasts of Alstoms management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause actual results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.


Full version of the Press release (with appendix) below in pdf.

The half-year financial report, as approved by the Board of Directors, in its meeting held on 8 November 2016, can be found on Alstoms website at The accounts have been audited and certified. 

2016-11-09 PR H1 2016-17 VF.pdf