Days after Martin Sion took over as CEO (replacing Henri Poupart-Lafarge), French rail equipment maker Alstom issued a severe profit warning. On Friday 17 April the stock plunged almost 30% at the Paris open, falling from €22.70 to €16.48.

The problem lies not in the order book — above €100bn — but in industrial execution in the short and medium term. Organic revenue growth for fiscal 2025-26 came in at 7% to €19.2bn, in line with guidance. But adjusted operating margin fell to around 6%, versus the ~7% previously promised. Delays on major rolling-stock projects (the trainsets and locomotives delivered to rail operators) are weighing on margins and cash. As a result, the cumulative free-cash-flow target of €1.5bn over 2024-25 to 2026-27 has been dropped, and the medium-term 8% to 10% adjusted operating margin goal has been pushed beyond 2026-27.

For the current year, management now guides around +5% organic growth, roughly 6.5% adjusted operating margin and positive free cash flow. An "operational transformation plan" will be unveiled at the audited results on 13 May. "Let's be clear, this is not how I had planned to start my mandate", Sion acknowledged. Source: Les Echos, 16 April 2026, Denis Fainsilber.