Alstom Unveils FY 2022-23 Results

Between April 1, 2022, to March 31, 2023, Alstom booked about $22.6B of orders, according to the company's news release. 

Sales were approximately $18B, in line with the targeted trajectory, resulting in a book-to-bill ratio of 1.25. 

The backlog reached $95.4B.

In the fiscal year 2022-23, Alstom’s adjusted EBIT was approximately $930M, equivalent to a 5.2% aEBIT margin. Adjusted net profit was about $318M and free cash flow was about $217M for the full year.

On March 31, Alstom's net debt position stood at about $2.3M, compared to the approximate $2.2M that the group reported in 2022. Alstom benefits from an approximate $5.2M liquidity position and equity amounting to about $9.9M on March 31.

The Board of Directors, in its meeting on May 9, decided to propose a dividend distribution of approximately $0.27 per share at the next shareholders’ meeting on July 11, which corresponds to a 33% payout ratio from the adjusted net profit.

“We have delivered a strong commercial performance during this year, with new orders exceeding $21.8M and book-to-bill consistently at 1.25," said Henri Poupart-Lafarge, CEO of Alstom. "Market momentum remains very positive with an increasing orders pipeline, and compelling growth prospects in all regions supported by a conducive policy environment focused on the greening of transport. Alstom is emerging stronger operationally from this year as we accelerate our transformation. Of note, we have successfully adapted our model to address the supply chain and electronics headwinds, while delivering against our financial and environmental objectives. We remain committed to our mid-term profitability and cash generation targets, which will be reached in 2025-26.”

Strategic and Business Update

Alstom made progress on all four pillars of its Alstom in Motion 2025 strategy in FY 2022-23.

Growth by Offering Greater Value to Customers

During the fiscal year 2022-23, the Group recorded about $22.5B in orders, with commercial success across multiple geographies, notably in Africa/Middle East/Central Asia and in Asia/Pacific, and product lines, mostly in Services. Orders for Services reached a new record level of $6.9B or 31% of the total order intake.

Alstom’s sales amounted to approximately $17.9B for the fiscal year 2022-23, representing a growth of 7% on an actual basis and 5% on an organic basis compared with Alstom's sales last fiscal year.

The group announced in July 2022 that it has concluded the transfer of business activities related to Bombardier Transportation’s contribution to the V300 ZEFIRO very high-speed train to Hitachi Rail.

Innovation by Smarter and Greener Mobility

During the fiscal year 2022-23, Alstom reached delivery milestones and launched a range of initiatives. The R&D expenses reached about $565M, i.e., 3.1% of sales for the full year.

• Energy efficiency
• Noise reduction
• Passenger experience
• Autonomous train
• Onboard computer
• Green traction

Efficiency at scale, Powered by Digital

In the fiscal year 2022-23, Alstom’s adjusted EBIT reached $929M, equivalent to a 5.2% operational margin, as compared to approximately $836M or a 5% operating margin during the same period last fiscal year. The increase was driven by synergies.

Synergies generated $223M adjusted EBIT over FY 2022-23.

One Alstom team

Alstom said it is reducing its own direct and indirect emissions (Scope 1 & 2) and is also committed to working with suppliers and customers (Scope 3) to contribute to Net Zero carbon in the mobility sector.

Alstom targets have been submitted for validation by the independent Science Based Targets initiative (SBTi) with expected feedback by June 2023.

During the year energy efficiency plans were deployed in all regions and, along with weather conditions, resulted in a reduction in energy consumption of 10.5%, with a particular fall in gas consumption.

Financial Structure

Alstom's Free Cash Flow stands at approximately $217M for the fiscal year 2022-23 as compared to $909M during the last fiscal year.

On March 31, the group recorded a net debt position of about $2.3M, including bonds with supportive maturities and cost profile and no financial covenants.

The Group held about $900M of cash and cash equivalent at the end of March 2023.

Financial Trajectory for FY 2023-24

The group has based its FY 2023-24 outlook on a central inflation scenario reflecting a consensus of public institutions. Alstom also assumes its continuous ability to navigate the supply chain, macro-economic, and geopolitical challenges as it has done during FY 2022-23.