(Il Sole 24 Ore Radiocor) - Milano, 17 apr - Shares of the French rail transport firm Alstom were sharply lower in Paris dealings, after the company withdrew its free cash flow guidance and warned its medium-term objective for an adjusted EBIT margin of 8-10% will no longer be met by fiscal year 2026/2027.

At 0735 GMT, Alstom shares were down 29.1% to 16.20 euros.

Alstom withdrew its guidance for the three years through fiscal year 2026/2027 of a cumulative free cash flow of over 1.5 billion euros, and said it now anticipates it will generate "positive" free cash flow by the end of the period.

It forecasts that seasonality will drive a free cash outflow of about 1.5 billion euros in the first half of the year that started on April 1. Alstom also forecasts an adjusted EBIT margin of about 6.5% for the year.

'As I start my role as group CEO, I am convinced Alstom is well positioned, with a 100 billion euro backlog and a supportive rail market. However, while the group delivered strong order intake and met its cash objectives in FY 2025/26, profitability fell short of expectations. In a business where rigorous planning and disciplined execution are essential, some large rolling-stock projects have progressed more slowly than anticipated, weighing on near-term margins and cash. We are therefore launching immediate actions to stabilise performance, while preparing deeper operational changes to restore sustainable execution, cash generation and profitable growth' commented Martin.

Sion,the CEO.

(RADIOCOR) 17-04-26 09:55:50 (0210) 5 NNNN