Alstom Shares Drop After Train Maker Cuts Financial Targets
Alstom shares face a 15 percent drop after the firm withdrew its cash flow targets. The train maker expects a 1.5 billion euro outflow in the current half year.
Shares of ALSTOM are projected to decline by 10% to 15% following the manufacturer's decision to withdraw its medium-term financial outlook. Traders anticipate a sharp drop during Friday's session after the company released preliminary results for the 2025/26 fiscal year. The rail manufacturer, headquartered in France, has adjusted its financial targets and now expects to achieve positive free cash flow by the conclusion of the 2026/27 fiscal year. This update replaces its previous goal of generating a cumulative free cash flow of 1.5 billion euros over a three-year period. Furthermore, the company expects a cash outflow of approximately 1.5 billion euros for the first half of the fiscal year that commenced on April 1. These financial revisions come as the EUR/USD exchange rate is valued at approximately 0.8488 euros per dollar.
