Alstom shares fell 9.8% to €10.55, extending a steep two-session sell-off that began after the French rail manufacturer released preliminary first-half fiscal 2026/27 results on November 2. The stock reached an intraday 52-week low of €10.51, compared with a 52-week high of €30.23.
The results showed an adjusted EBIT margin of approximately -4%, down from 6.4% in the same period a year earlier. Alstom attributed the decline to gross margin write-downs on its Coradia Max electric multiple unit platform, linked to industrialization difficulties and homologation delays in Germany.
The company also cut its full-year adjusted EBIT margin forecast to around 1%, from approximately 6.5%, and changed its free cash flow outlook from positive to a projected €1.5 billion outflow.
Analyst actions following the profit warning added pressure to the shares. Deutsche Bank lowered its price target to €13 from €19 while keeping a Hold rating, and JPMorgan downgraded Alstom from Overweight to Neutral. Citi also changed its rating from Buy to Neutral. Deutsche Bank additionally cut its earnings-per-share estimates by an average of about 33% from fiscal 2027/28 onwards.
Alstom’s net debt rose to €1.1 billion at September 30, 2026, from €0.4 billion at the end of March. The company announced a €2 billion debt-reduction plan and secured a revolving credit facility of the same size.
The decline was company-specific: Alstom was the CAC 40’s worst performer by a wide margin, while the broader French index held firm on November 2. A Capital Markets Day is not scheduled until the second quarter of 2027.
Sources: Investing.com News.