(AOF) – The Alstom share (-5.67% to 11.23 euros) is the bottom of the CAC 40 in the absence of new developments regarding its debt reduction plan. Investors will have to wait until the publication of its annual results on May 8, “at the latest” to know “the breakdown of the measures of the inorganic debt reduction plan of 2 billion euros” by March 2025. Alstom had unscrewed in November when the planned measures were announced, including a possible capital increase.
Increase in capital
On this subject, the group specified that the “feasibility and sizing of a capital increase” were studied in parallel with the other measures.
These include asset sales. Alstom confirmed the announced range of proceeds from disposals of 0.5 to 1 billion euros. The preparation of issues of quasi-equity and similar securities is also underway.
The group made these announcements on the occasion of the publication of its results for the third quarter, ended at the end of December, of its staggered 2023/2024 financial year. The rail transport specialist generated a turnover of 4.33 billion euros, up 4.6% organically against a consensus of 5.9%.
The group explains that it “recorded solid order intake this quarter, thanks to the positive dynamics of the services and systems market”. Its order book as of December 31, 2023 reached 90.3 billion euros, giving it strong visibility on its future sales.
Over this quarter, the company reported 5.45 billion euros in orders received, an increase of 5.8%, or 2% more than the consensus. The quality of order intake in this third quarter allows it to continue to increase the gross margin of its order book. It increased by 0.5% per year over the next three years.
Jefferies remains at “Buy” on Alstom with an unchanged price target of 33 euros. The broker explains that Alstom’s orders increased by 6% compared to the previous year and were 2% higher than expected.
As for UBS, the analyst (who remains Neutral with an unchanged price target of 12.70 euros) expects a neutral or slightly positive reaction from Alstom’s share price after the publication of these results.
From 38 to 40 billion euros in revenue over the next 3 years
In terms of prospects, the rail transport specialist has maintained its short-term objectives. For 2023-2024, it notably expects free cash flow to still be negative over the financial year but reduced to between -750 and -500 million euros. It anticipates organic growth in its turnover in excess of 5%.
In addition, Alstom targets an average annual revenue growth rate above 5% between fiscal years 2021-2022 and 2025-2026, supported by strong market dynamics and its unrivaled order book of 90.3 billion euros. ‘euros. This forecast would guarantee around 38 to 40 billion euros in turnover over the next three years.
Its adjusted operating margin is expected to reach between 8% and 10% from 2025/26.
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