Alstom secured €3.56bn of orders during the third quarter, which ran from October 1 to December 31 2019, compared with €3.38bn over the same period in 2018. Group sales increased to €2.1bn compared with €2bn over the same period the previous year.

The order backlog on December 31 2019 reached a new historical record of €43bn, which Alstom says provides strong visibility on future sales.

Europe accounted for the majority of the orders in the quarter, including a €755m contract to refurbish and maintain Avanti West Coast’s Pendolino trains in Britain and a contract for the renewal and automation of Marseille metro. The period also includes an order for 44 new generation metro trains for Île-de-France Mobilités and RATP, which are being supplied by a consortium comprising Alstom and Bombardier within a framework contract for up to 410 trains.

Alstom also achieved a strong order intake in Asia Pacific at €1.2bn, boosted by a combined €800m contract for rolling stock and maintenance for Perth’s rail network in Australia. Alstom is also supplying driverless trains and a digital signalling system for Sydney Metro’s extension.

Orders in signalling and services were particularly positive with €593m and €1.2bn booked during the quarter respectively.

Sales held steady at €2bn for the quarter. Rolling stock sales grew 11% from €2.6bn in the first nine months of 2018-19 to €2.8bn in the first nine months of 2019-20. Services showed a 2% decrease; systems showed a foreseen decline of 22%, mainly due to a fully traded contract for Panama Metro and contracts nearing completion in the Middle East. Signalling sales increased by 16%, with contracts executed mainly in the Americas, Asia Pacific and Europe.

In October 2019, Alstom successfully carried out the issuance of senior unsecured Eurobonds for a total of €700m, “at excellent financing conditions.” The bonds have a seven-year maturity and a fixed coupon of 0.25%, payable annually. The order book was more than three times oversubscribed.

Outlook

Alstom expects the current fiscal year will be a year of growth stabilisation after what is describes as “exceptional sales and profitability growth” in 2018-19. For 2019-20, the business cycle combined with the finalisation of major systems contracts and the evolution of large rolling stock projects will lead to a sales and margin growth lower than average. Up to March 2023, Alstom targets an average annual sales growth rate of around 5% over the 2019-20 - 2022-23 period, with an adjusted Ebit margin of around 9% in 2022-23.

“The rail market is clearly undergoing a very positive momentum, in particular driven by growing environmental concerns,” says Alstom chairman and CEO, Mr Henri Poupart-Lafarge. “We are fully committed to contribute to the shift to a decarbonised future thanks to our portfolio of sustainable mobility solutions.”