© Reuters. FILE PHOTO: A logo of Alstom is seen at the Alstom’s plant in Semeac near Tarbes, France, February 15, 2019. REUTERS/Regis Duvignau/File Photo
(Reuters) – French train maker Alstom (EPA:) on Wednesday said it expected its operating margin to rise in the current fiscal year, saying market momentum remained very positive with an growing pipeline of orders.
Alstom forecast adjusted operating profit (EBIT) margin of 6% and a significantly positive free cash flow for the twelve months to the end of March 2024.
For fiscal 2022/23, the company reported an adjusted EBIT margin of 5.2% on adjusted operating profit of 852 million euros ($938 million), slightly above the 848 million euros expected by analysts in a company-compiled consensus.
The rail infrastructure company said it expected to reach its mid-term adjusted EBIT and free cash flow targets in fiscal 2025/26, one year later than previously envisioned, mainly due to the challenging economic environment and inflation in particular.
($1 = 0.9084 euros)