(Reuters) – Alstom said on Wednesday it expects its operating margin to rise in the current financial year citing a growing rail market, but postponed its medium-term targets.
The French rail equipment specialist has delayed its medium-term adjusted operating margin and free cash flow targets by a year to achieve them in the 2025/26 financial year, mainly due to the uncertain macroeconomic environment, in particular the effect of inflation.
“Market momentum remains very positive with compelling order intake and growth prospects across all regions, supported by a supportive policy environment focused on transport decarbonization,” Henri Poupart-Lafarge, CEO of Transport, said in a statement. ‘Alstom.
The French group forecasts an adjusted operating margin of around 6% for the financial year started on April 1 and a significantly positive free cash flow until the end of March 2024, betting on general forecasts of inflation and ” its ability to weather supply chain disruptions and current macroeconomic and geopolitical challenges.”
Alstom achieved an adjusted operating margin of 5.2% for the year ended March and an adjusted operating profit of 852 million euros, slightly above the average analysts’ estimate of 848 million euros. euros, according to a consensus compiled by the company.
The group’s order book stood at 87.39 billion euros at the end of the financial year against 81.01 billion recorded during the previous financial year.
Alstom said it would propose a dividend of 0.25 euros per share at the next general meeting of shareholders in July.
(Written by Dina Kartit, edited by Bertrand Boucey and Kate Entringer)
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