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15 hours ago
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Lockheed Martin Corp (LMT) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: $18.2 billion for the second quarter, comparable year-over-year and up sequentially from the first quarter. Sales Growth: Excluding charges, sales increased in the mid-single-digit range. Segment Operating Profit: $570 million, impacted by $1.6 billion in charges related to Skunk Works and Sikorsky. Net Losses: $1.8 billion in total charges across several legacy programs. Earnings Per Share (EPS): $1.46, reduced by $5.83 due to program losses and tax items. Free Cash Flow: Usage of $150 million in the second quarter. Shareholder Returns: $1.3 billion returned through dividends and share repurchases. F-35 Deliveries: 50 aircraft delivered in the quarter, with a total of 97 so far this year. Guidance: 2025 sales guidance reaffirmed at $73.75 billion to $74.75 billion. Backlog: $167 billion, with significant awards expected in the second half of the year. Warning! GuruFocus has detected 2 Warning Signs with LMT. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Lockheed Martin Corp (NYSE:LMT) reported $18 billion in sales for the second quarter, demonstrating strong revenue generation. The company invested $800 million in infrastructure and innovation, indicating a commitment to future growth. Lockheed Martin Corp (NYSE:LMT) returned $1.3 billion to shareholders, showcasing a strong commitment to shareholder value. The F-35 program remains on track with 97 deliveries so far this year, highlighting operational efficiency. Lockheed Martin Corp (NYSE:LMT) demonstrated the effectiveness of its systems in recent combat operations, reinforcing its role in national security. Negative Points Lockheed Martin Corp (NYSE:LMT) recognized $1.8 billion in losses across several legacy programs, impacting financial performance. The company faced significant charges related to the Aeronautics Classified Program and other legacy programs, indicating ongoing challenges. US government sanctions affected the Turkish Utility Helicopter Program, resulting in a $95 million loss. The Canadian Maritime Helicopter Program incurred a $570 million loss due to revised cost and sales estimates. The IRS asserts that Lockheed Martin Corp (NYSE:LMT) owes $4.6 billion in additional income tax, creating potential financial uncertainty. Q & A Highlights Q: Why should investors feel comfortable that Lockheed Martin has derisked the problem programs, particularly the Aero Classified one? What changes have been made? A: James Taiclet, CEO, explained that with Evan Scott's succession as CFO, a new program review team was formed with wider expertise and higher-level management scrutiny. This team reassessed cost trends and reevaluated program assumptions, leading to additional charges. The programs will continue to be monitored with robust oversight, and there is a policy in place to avoid must-win programs, ensuring no outsized future risks. Q: Why did it take a billion dollars of charges to change the way you're reviewing the Aero Classified program? How does the $1.8 billion in charges affect cash flow? A: James Taiclet noted that the charges were due to new discoveries of cost risks and anomalies in the development phase. Evan Scott added that $500 million of cash usage is expected this year, stepping down to $400 million next year, with a line of sight to when it turns positive. Q: Can you explain the reduction in the F-35 units in the administration's FY26 request and how easy it is to swap out relinquished DoD slots with export customers? A: James Taiclet stated that the House Appropriations Committee increased the number of F-35s from 47 to 69, and the Senate marked it up to 57. Historically, appropriations committees have the final say, and there is hope for greater demand by the end of the budget process. Evan Scott added that the backlog remains strong, allowing flexibility in production planning. Q: What is the $4.6 billion tax liability related to, and how will it impact free cash flow? A: Evan Scott explained that the IRS's position on a tax accounting method change is being contested, with Lockheed Martin standing by its approach. A $100 million P&L charge was taken for interest. For 2026, a $1 billion pension contribution is assumed, with various factors impacting cash flow, including reach-forward charges and tax benefits. Q: Can you discuss the F-35's role in modern warfare and its priority for the DoD today? A: James Taiclet emphasized the F-35's critical role in modern warfare, citing its orchestration capabilities and combat-proven status. Despite budget cuts, the F-35 remains essential, and Lockheed Martin is focused on bridging capabilities to the next generation while maintaining strong international demand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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17 hours ago
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Alstom S.A: Alstom's first quarter 2025/26: Commercial momentum off to a good start, outlook confirmed
Order intake at €4.1 billion. Rolling Stock book-to-bill ratio back at 1.0x Sales at €4.5 billion, up 2.8% vs. last year, of which 7.2% organic Fiscal year 2025/26 outlook and medium-term ambitions confirmed23 July 2025 – Over the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom booked €4.1 billion of orders. The Group's sales reached €4.5 billion in the quarter, up 2.8% vs. last year. Foreign exchange represented a 2.7% headwind on sales, owing to the appreciation of the euro against major currencies compared to the same period last year. Scope was a 1.5% headwind thanks to the sale of the North American conventional signalling business last year. Therefore, the Group's organic sales increased by 7.2% vs. last year. The backlog, as of 30 June 2025, settled at €92.3 billion, providing strong visibility on future sales. Key figures Reported figures(in € million) 2024/25Q1 2025/26Q1 % ChangeReported % ChangeOrganic Orders received1 3,645 4,075 +11.8% +13.6% Sales 4,389 4,514 +2.8% +7.2% Geographic and product breakdowns of reported orders and sales are provided in Appendix 1. 'Alstom's commercial performance is off to a good start. First-quarter orders have surpassed the €4 billion mark, with a strong view on the pipeline for the second quarter, bolstered by momentum in North America. All product lines have contributed to organic sales growth, particularly with projects in Germany beginning to ramp up. We confirm guidance for this fiscal year and Alstom's medium-term ambitions. Stability and visibility underscore the resilience of our business and our teams,' said Henri Poupart-Lafarge, Chief Executive Officer of Alstom *** Detailed review During the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom recorded €4,075 million in orders, compared to €3,645 million over the same period last fiscal year. Over three months, orders for Services, Signalling and Systems reached 42% of the total order intake. On a regional level, Europe accounted for 85% of the Group total order intake. In France, Alstom received an order from SNCF Voyageurs for 96 additional RER NG trainsets for the RER D line, under the framework agreement signed in 2017. Financed by Île-de-France Mobilités, the order is worth approximately €1.7 billion. The contract brings the total number of RER NG trainsets ordered to 262. In Bulgaria, Alstom, leading the BULEMU consortium, signed a contract with the Ministry of Transport and Communications for the supply of 35 Coradia Stream interregional electric trains and 15 years of maintenance services. The contract is valued at €720 million, with Alstom's share amounting to €600 million. Sales were €4,514 million in Q1 2025/26 (from 1 April to 30 June 2025) versus €4,389 million in Q1 2024/25 (up 2.8% on a reported basis and 7.2% on an organic basis). Rolling Stock sales reached €2,416 million, representing an increase of 3% on a reported basis and 5% on an organic basis, driven by the ramp-up of projects in Germany, alongside continued strong execution in France, the US, and Italy. Services reported €1,070 million of sales, stable on a reported basis and up 2% on an organic basis, supported by a ramp-up of projects in Germany, Italy and South Africa and continuous execution in North America. Signalling sales stood at €603 million, down 5% on a reported basis, impacted by the sale of the North American conventional signalling business last year. Sales were up 9% on an organic basis, marked by execution progress across all regions, particularly in France, Italy, and Germany. For Systems, Alstom reported €425 million sales, up 25% on a reported basis and 36% on an organic basis, benefiting from a strong ramp-up of turnkey projects in Brazil and the Philippines, as well as sustained activity in Mexico and France. The book-to-bill ratio is 0.9x over the quarter. *** Key project deliveries During the first quarter of 2025/26, Alstom's teams delivered key milestones across all regions. In France, the first metro train for Grand Paris Express Line 18 was delivered, and Omneo trains entered service on the Marseille–Toulon–Nice line. In the UK, a new Aventra fleet – belonging to the Adessia product family – began operations for London Northwestern Railway, and, in Sweden, Alstom executed the first commercial deployment of ERTMS. In India, metro services commenced in Kanpur and Indore, enhancing urban mobility. In the U.S., Alstom delivered the first Innovia automated people mover to Hartsfield-Jackson Atlanta International Airport. *** Assumptions for FY 2025/26 The outlook for FY 2025/26 is based on following main assumptions: Supportive market demand Number of cars produced stable vs FY 2024/25 Mitigating US tariffs impact Outlook for FY 2025/26 Group and Rolling Stock book-to-bill ratio above 1.0x Sales organic growth between 3% to 5% aEBIT margin around 7% Free Cash Flow generation to be within the €200 to €400 million range Seasonality driving consumption FCF of up to €(1)bn in H1 2025/26 Over the three years from FY 2024/25 to FY 2026/27, the Group expects to deliver at least €1.5 billion in free cash-flow, despite Contract Working Capital being a headwind over that period. *** Medium-term ambitions are confirmed as per the May 14, 2025, full year announcement. *** Financial calendar 13 November 2025 2025/26 Half-Year Results *** Conference Call Alstom is pleased to invite the analysts to a conference call presenting its first quarter orders and sales for the fiscal year 2025/26 on Wednesday 23 July at 8:30 am (Paris time), hosted by Bernard Delpit, EVP and CFO. A live audiocast will also be available on Alstom's website: Alstom's first quarter orders and sales for FY 2025/26. To participate in the Q&A session (audio only), please use the dial-in numbers below: France: +33 (0) 1 7037 7166 UK: +44 (0) 33 0551 0200 USA: +1 786 697 3501 Canada: 1 866 378 3566 (toll free) Quote ALSTOM to the operator to be transferred to the appropriate conference. *** ALSTOM™, Adessia™, Aventra™, Coradia Stream™, Innovia™ and Omneo™ are protected trademarks of the Alstom Group About Alstom Alstom commits to contribute to a low carbon future by developing and promoting innovative and sustainable transportation solutions that people enjoy riding. From high-speed trains, metros, monorails, trams, to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. With its presence in 63 countries and a talent base of over 86,000 people from 184 nationalities, the company focuses its design, innovation, and project management skills to where mobility solutions are needed most. Listed in France, Alstom generated sales of €18.5 billion for the fiscal year ending on 31 March 2025. For more information, please visit Press:Philippe MOLITOR - Tel.: +33 (0)7 76 00 97 79 Thomas ANTOINE - Tel.: +33 (0) 6 11 47 28 Investor relations:Cyril GUERIN - Tel.: +33 (0)6 07 89 36 Guillaume GAUVILLE - Tel: +44 (0)7 588 022 Estelle MATURELL ANDINO - Tel: +33 (0)6 71 37 47 56 Jalal DAHMANE - Tel: +33 (0)6 98 19 96 This press release contains forward-looking statements which are based on current plans and forecasts of Alstom's management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause reported results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This press release does not constitute or form part of a prospectus or any offer or invitation for the sale or issue of, or any offer or inducement to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for any shares or other securities in the Company in France, the United Kingdom, the United States or any other jurisdiction. Any offer of the Company's securities may only be made in France pursuant to a prospectus having received the approval from the AMF or, outside France, pursuant to an offering document prepared for such purpose. The information does not constitute any form of commitment on the part of the Company or any other person. Neither the information nor any other written or oral information made available to any recipient, or its advisers will form the basis of any contract or commitment whatsoever. In particular, in furnishing the information, the Company, the Joint Global Coordinators, their affiliates, shareholders, and their respective directors, officers, advisers, employees or representatives undertake no obligation to provide the recipient with access to any additional information. APPENDIX 1A – GEOGRAPHIC BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,570 70% 3,472 86% Americas 318 9% 258 6% Asia / Pacific 237 7% 330 8% Middle East / Africa 520 14% 15 0% Orders by destination 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,494 57% 2,672 60% Americas 894 20% 833 18% Asia / Pacific 624 14% 652 14% Middle East / Africa 377 9% 357 8% Sales by destination 4,389 100% 4,514 100% APPENDIX 1B – PRODUCT BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 1,410 39% 2,365 59% Services 1,199 33% 751 18% Systems 119 3% 128 3% Signalling 917 25% 831 20% Orders by product line 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 2,338 53% 2,416 54% Services 1,073 24% 1,070 24% Systems 341 8% 425 9% Signalling 637 15% 603 13% Sales by product line 4,389 100% 4,514 100% APPENDIX 2 - NON-GAAP FINANCIAL INDICATORS DEFINITIONSThis section presents financial indicators used by the Group that are not defined by IFRS or other generally accepted accounting principles.1.1. Orders receivedA new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments. Book-to-Bill The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period. Gross margin % in backlogGross Margin % in backlog is a KPI that presents the expected performance level of firm contracts in backlog. It represents the difference between the sales not yet recognized and the cost of sales not yet incurred from the contracts in backlog. This % is an average of the portfolio of contracts in backlog and is meaningful to project mid- and long-term profitability. Adjusted Gross Margin before PPAAdjusted Gross Margin before PPA is a KPI that presents the level of recurring operational performance. It represents the sales minus the cost of sales, adjusted to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination as well as significant, non-recurring 'one off' items that are not expected to occur again in subsequent years. EBIT before PPAFollowing the Bombardier Transportation acquisition and with effect from the fiscal year 2021/22 condensed consolidated financial statements, Alstom decided to introduce the 'EBIT before PPA' KPI aimed at restating its Earnings Before Interest and Taxes ('EBIT') to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination. This KPI is also aligned with market practice. Adjusted EBITAdjusted EBIT ('aEBIT') is a KPI that presents the level of recurring operational performance. This KPI is also aligned with market practice and comparable to the Group's direct competitors. Since September 2019, Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT even though this component is part of the operating activities of the Group (because there are significant operational flows and/or common project execution associated with these entities). This mainly includes Chinese joint ventures, namely CASCO joint venture for Alstom as well as, following the integration of Bombardier Transportation, Alstom Sifang (Qingdao) Transportation Ltd., Jiangsu Alstom NUG Propulsion System Co. corresponds to Earning Before Interests and Tax adjusted for the following elements: net restructuring expenses (including rationalisation costs) tangibles and intangibles impairment capital gains or loss/revaluation on investments disposals or controls changes of an entity any other non-recurring items, such as some costs incurred to realise business combinations and amortisation of an asset exclusively valued in the context of business combination, as well as litigation costs that have arisen outside the ordinary course of business and including the share in net income of the operational equity-accounted investments. A non-recurring item is a significant, 'one-off' exceptional item that is not expected to occur again in subsequent EBIT margin corresponds to Adjusted EBIT expressed as a percentage of sales. EBITDA + JV dividendsEBITDA before PPA plus dividends from joint ventures is the EBIT before PPA, before depreciation and amortisation, with the addition of the dividends received from joint ventures. Adjusted net profitThe 'Adjusted Net Profit' KPI restates Alstom's net profit from continued operations (Group share) to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination, net of the corresponding tax effect. This indicator is also aligned with market practice. Free cash flow Free Cash Flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. Free Cash Flow does not include any proceeds from disposals of most directly comparable financial measure to Free Cash Flow calculated and presented in accordance with IFRS is net cash provided by operating activities. Free Cash Flow conversion rateFree Cash Flow Conversion ratio is computed as Free Cash Flow of the period divided by the adjusted net profit of the same period. Alstom uses the Free Cash Flow conversion ratio to measure its ability to convert adjusted net profit into Free Cash Flow in a defined period. Funds from OperationsFunds from Operations 'FFO' in the EBIT before PPA to Free Cash Flow statement refers to the Free Cash Flow generated by Operations, before Working Capital variations. Contract and Trade Working CapitalContract Working Capital is the sum of: Contract Assets & Liabilities, which includes the Customer Down-Payments Current provisions, which includes Risks on contracts and Warranties Trade Working Capital is the Working Capital that is not strictly contractual, hence not included in Project Working Capital. It includes: Inventories Trade Receivables Trade Payables Other elements of Working Capital defined as the sum of Other Assets/Liabilities and Non-Current provisions Net cash/(debt)The net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings. Pay-out ratio The pay-out ratio is calculated by dividing the amount of the overall dividend with the 'Adjusted Net profit from continuing operations attributable to equity holders of the parent, Group share' as presented in the management report in the consolidated financial statements. Organic basis This press release includes performance indicators presented on a reported basis and on an organic basis. Figures given on an organic basis eliminate the impact of changes in scope of consolidation and changes resulting from the translation of the accounts into Euro following the variation of foreign currencies against the Group uses figures prepared on an organic basis both for internal analysis and for external communication, as it believes they provide means to analyse and explain variations from one period to another. However, these figures are not measurements of performance under IFRS.Q1 2024/25Q1 2025/26 (in € million) Reported figures Exchange rate and scope impact Comparable FiguresReportedfigures % Var Rep. % Var Org. Orders 3,645 58 3,5874,075 11.8% 13.6% Sales 4,389 178 4,2114,514 2.8% 7.2%1 Non - GAAP. See definition in the appendix. Attachment PR Alstom Q1 2025-26 Results- EN - VFinalSign in to access your portfolio
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17 hours ago
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Alstom S.A: Alstom's first quarter 2025/26: Commercial momentum off to a good start, outlook confirmed
Order intake at €4.1 billion. Rolling Stock book-to-bill ratio back at 1.0x Sales at €4.5 billion, up 2.8% vs. last year, of which 7.2% organic Fiscal year 2025/26 outlook and medium-term ambitions confirmed23 July 2025 – Over the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom booked €4.1 billion of orders. The Group's sales reached €4.5 billion in the quarter, up 2.8% vs. last year. Foreign exchange represented a 2.7% headwind on sales, owing to the appreciation of the euro against major currencies compared to the same period last year. Scope was a 1.5% headwind thanks to the sale of the North American conventional signalling business last year. Therefore, the Group's organic sales increased by 7.2% vs. last year. The backlog, as of 30 June 2025, settled at €92.3 billion, providing strong visibility on future sales. Key figures Reported figures(in € million) 2024/25Q1 2025/26Q1 % ChangeReported % ChangeOrganic Orders received1 3,645 4,075 +11.8% +13.6% Sales 4,389 4,514 +2.8% +7.2% Geographic and product breakdowns of reported orders and sales are provided in Appendix 1. 'Alstom's commercial performance is off to a good start. First-quarter orders have surpassed the €4 billion mark, with a strong view on the pipeline for the second quarter, bolstered by momentum in North America. All product lines have contributed to organic sales growth, particularly with projects in Germany beginning to ramp up. We confirm guidance for this fiscal year and Alstom's medium-term ambitions. Stability and visibility underscore the resilience of our business and our teams,' said Henri Poupart-Lafarge, Chief Executive Officer of Alstom *** Detailed review During the first quarter of 2025/26 (from 1 April to 30 June 2025), Alstom recorded €4,075 million in orders, compared to €3,645 million over the same period last fiscal year. Over three months, orders for Services, Signalling and Systems reached 42% of the total order intake. On a regional level, Europe accounted for 85% of the Group total order intake. In France, Alstom received an order from SNCF Voyageurs for 96 additional RER NG trainsets for the RER D line, under the framework agreement signed in 2017. Financed by Île-de-France Mobilités, the order is worth approximately €1.7 billion. The contract brings the total number of RER NG trainsets ordered to 262. In Bulgaria, Alstom, leading the BULEMU consortium, signed a contract with the Ministry of Transport and Communications for the supply of 35 Coradia Stream interregional electric trains and 15 years of maintenance services. The contract is valued at €720 million, with Alstom's share amounting to €600 million. Sales were €4,514 million in Q1 2025/26 (from 1 April to 30 June 2025) versus €4,389 million in Q1 2024/25 (up 2.8% on a reported basis and 7.2% on an organic basis). Rolling Stock sales reached €2,416 million, representing an increase of 3% on a reported basis and 5% on an organic basis, driven by the ramp-up of projects in Germany, alongside continued strong execution in France, the US, and Italy. Services reported €1,070 million of sales, stable on a reported basis and up 2% on an organic basis, supported by a ramp-up of projects in Germany, Italy and South Africa and continuous execution in North America. Signalling sales stood at €603 million, down 5% on a reported basis, impacted by the sale of the North American conventional signalling business last year. Sales were up 9% on an organic basis, marked by execution progress across all regions, particularly in France, Italy, and Germany. For Systems, Alstom reported €425 million sales, up 25% on a reported basis and 36% on an organic basis, benefiting from a strong ramp-up of turnkey projects in Brazil and the Philippines, as well as sustained activity in Mexico and France. The book-to-bill ratio is 0.9x over the quarter. *** Key project deliveries During the first quarter of 2025/26, Alstom's teams delivered key milestones across all regions. In France, the first metro train for Grand Paris Express Line 18 was delivered, and Omneo trains entered service on the Marseille–Toulon–Nice line. In the UK, a new Aventra fleet – belonging to the Adessia product family – began operations for London Northwestern Railway, and, in Sweden, Alstom executed the first commercial deployment of ERTMS. In India, metro services commenced in Kanpur and Indore, enhancing urban mobility. In the U.S., Alstom delivered the first Innovia automated people mover to Hartsfield-Jackson Atlanta International Airport. *** Assumptions for FY 2025/26 The outlook for FY 2025/26 is based on following main assumptions: Supportive market demand Number of cars produced stable vs FY 2024/25 Mitigating US tariffs impact Outlook for FY 2025/26 Group and Rolling Stock book-to-bill ratio above 1.0x Sales organic growth between 3% to 5% aEBIT margin around 7% Free Cash Flow generation to be within the €200 to €400 million range Seasonality driving consumption FCF of up to €(1)bn in H1 2025/26 Over the three years from FY 2024/25 to FY 2026/27, the Group expects to deliver at least €1.5 billion in free cash-flow, despite Contract Working Capital being a headwind over that period. *** Medium-term ambitions are confirmed as per the May 14, 2025, full year announcement. *** Financial calendar 13 November 2025 2025/26 Half-Year Results *** Conference Call Alstom is pleased to invite the analysts to a conference call presenting its first quarter orders and sales for the fiscal year 2025/26 on Wednesday 23 July at 8:30 am (Paris time), hosted by Bernard Delpit, EVP and CFO. A live audiocast will also be available on Alstom's website: Alstom's first quarter orders and sales for FY 2025/26. To participate in the Q&A session (audio only), please use the dial-in numbers below: France: +33 (0) 1 7037 7166 UK: +44 (0) 33 0551 0200 USA: +1 786 697 3501 Canada: 1 866 378 3566 (toll free) Quote ALSTOM to the operator to be transferred to the appropriate conference. *** ALSTOM™, Adessia™, Aventra™, Coradia Stream™, Innovia™ and Omneo™ are protected trademarks of the Alstom Group About Alstom Alstom commits to contribute to a low carbon future by developing and promoting innovative and sustainable transportation solutions that people enjoy riding. From high-speed trains, metros, monorails, trams, to turnkey systems, services, infrastructure, signalling and digital mobility, Alstom offers its diverse customers the broadest portfolio in the industry. With its presence in 63 countries and a talent base of over 86,000 people from 184 nationalities, the company focuses its design, innovation, and project management skills to where mobility solutions are needed most. Listed in France, Alstom generated sales of €18.5 billion for the fiscal year ending on 31 March 2025. For more information, please visit Press:Philippe MOLITOR - Tel.: +33 (0)7 76 00 97 79 Thomas ANTOINE - Tel.: +33 (0) 6 11 47 28 Investor relations:Cyril GUERIN - Tel.: +33 (0)6 07 89 36 Guillaume GAUVILLE - Tel: +44 (0)7 588 022 Estelle MATURELL ANDINO - Tel: +33 (0)6 71 37 47 56 Jalal DAHMANE - Tel: +33 (0)6 98 19 96 This press release contains forward-looking statements which are based on current plans and forecasts of Alstom's management. Such forward-looking statements are relevant to the current scope of activity and are by their nature subject to a number of important risks and uncertainty factors (such as those described in the documents filed by Alstom with the French AMF) that could cause reported results to differ from the plans, objectives and expectations expressed in such forward-looking statements. These such forward-looking statements speak only as of the date on which they are made, and Alstom undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise. This press release does not constitute or form part of a prospectus or any offer or invitation for the sale or issue of, or any offer or inducement to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for any shares or other securities in the Company in France, the United Kingdom, the United States or any other jurisdiction. Any offer of the Company's securities may only be made in France pursuant to a prospectus having received the approval from the AMF or, outside France, pursuant to an offering document prepared for such purpose. The information does not constitute any form of commitment on the part of the Company or any other person. Neither the information nor any other written or oral information made available to any recipient, or its advisers will form the basis of any contract or commitment whatsoever. In particular, in furnishing the information, the Company, the Joint Global Coordinators, their affiliates, shareholders, and their respective directors, officers, advisers, employees or representatives undertake no obligation to provide the recipient with access to any additional information. APPENDIX 1A – GEOGRAPHIC BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,570 70% 3,472 86% Americas 318 9% 258 6% Asia / Pacific 237 7% 330 8% Middle East / Africa 520 14% 15 0% Orders by destination 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Europe 2,494 57% 2,672 60% Americas 894 20% 833 18% Asia / Pacific 624 14% 652 14% Middle East / Africa 377 9% 357 8% Sales by destination 4,389 100% 4,514 100% APPENDIX 1B – PRODUCT BREAKDOWN Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 1,410 39% 2,365 59% Services 1,199 33% 751 18% Systems 119 3% 128 3% Signalling 917 25% 831 20% Orders by product line 3,645 100% 4,075 100%Reported figures 2024/25 % 2025/26 % (in € million) 3 months Contrib. 3 months Contrib. Rolling stock 2,338 53% 2,416 54% Services 1,073 24% 1,070 24% Systems 341 8% 425 9% Signalling 637 15% 603 13% Sales by product line 4,389 100% 4,514 100% APPENDIX 2 - NON-GAAP FINANCIAL INDICATORS DEFINITIONSThis section presents financial indicators used by the Group that are not defined by IFRS or other generally accepted accounting principles.1.1. Orders receivedA new order is recognised as an order received only when the contract creates enforceable obligations between the Group and its customer. When this condition is met, the order is recognised at the contract value. If the contract is denominated in a currency other than the functional currency of the reporting unit, the Group requires the immediate elimination of currency exposure using forward currency sales. Orders are then measured using the spot rate at inception of hedging instruments. Book-to-Bill The book-to-bill ratio is the ratio of orders received to the amount of sales traded for a specific period. Gross margin % in backlogGross Margin % in backlog is a KPI that presents the expected performance level of firm contracts in backlog. It represents the difference between the sales not yet recognized and the cost of sales not yet incurred from the contracts in backlog. This % is an average of the portfolio of contracts in backlog and is meaningful to project mid- and long-term profitability. Adjusted Gross Margin before PPAAdjusted Gross Margin before PPA is a KPI that presents the level of recurring operational performance. It represents the sales minus the cost of sales, adjusted to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination as well as significant, non-recurring 'one off' items that are not expected to occur again in subsequent years. EBIT before PPAFollowing the Bombardier Transportation acquisition and with effect from the fiscal year 2021/22 condensed consolidated financial statements, Alstom decided to introduce the 'EBIT before PPA' KPI aimed at restating its Earnings Before Interest and Taxes ('EBIT') to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination. This KPI is also aligned with market practice. Adjusted EBITAdjusted EBIT ('aEBIT') is a KPI that presents the level of recurring operational performance. This KPI is also aligned with market practice and comparable to the Group's direct competitors. Since September 2019, Alstom has opted for the inclusion of the share in net income of the equity-accounted investments into the aEBIT even though this component is part of the operating activities of the Group (because there are significant operational flows and/or common project execution associated with these entities). This mainly includes Chinese joint ventures, namely CASCO joint venture for Alstom as well as, following the integration of Bombardier Transportation, Alstom Sifang (Qingdao) Transportation Ltd., Jiangsu Alstom NUG Propulsion System Co. corresponds to Earning Before Interests and Tax adjusted for the following elements: net restructuring expenses (including rationalisation costs) tangibles and intangibles impairment capital gains or loss/revaluation on investments disposals or controls changes of an entity any other non-recurring items, such as some costs incurred to realise business combinations and amortisation of an asset exclusively valued in the context of business combination, as well as litigation costs that have arisen outside the ordinary course of business and including the share in net income of the operational equity-accounted investments. A non-recurring item is a significant, 'one-off' exceptional item that is not expected to occur again in subsequent EBIT margin corresponds to Adjusted EBIT expressed as a percentage of sales. EBITDA + JV dividendsEBITDA before PPA plus dividends from joint ventures is the EBIT before PPA, before depreciation and amortisation, with the addition of the dividends received from joint ventures. Adjusted net profitThe 'Adjusted Net Profit' KPI restates Alstom's net profit from continued operations (Group share) to exclude the impact of amortisation of assets exclusively valued when determining the PPA in the context of business combination, net of the corresponding tax effect. This indicator is also aligned with market practice. Free cash flow Free Cash Flow is defined as net cash provided by operating activities less capital expenditures including capitalised development costs, net of proceeds from disposals of tangible and intangible assets. Free Cash Flow does not include any proceeds from disposals of most directly comparable financial measure to Free Cash Flow calculated and presented in accordance with IFRS is net cash provided by operating activities. Free Cash Flow conversion rateFree Cash Flow Conversion ratio is computed as Free Cash Flow of the period divided by the adjusted net profit of the same period. Alstom uses the Free Cash Flow conversion ratio to measure its ability to convert adjusted net profit into Free Cash Flow in a defined period. Funds from OperationsFunds from Operations 'FFO' in the EBIT before PPA to Free Cash Flow statement refers to the Free Cash Flow generated by Operations, before Working Capital variations. Contract and Trade Working CapitalContract Working Capital is the sum of: Contract Assets & Liabilities, which includes the Customer Down-Payments Current provisions, which includes Risks on contracts and Warranties Trade Working Capital is the Working Capital that is not strictly contractual, hence not included in Project Working Capital. It includes: Inventories Trade Receivables Trade Payables Other elements of Working Capital defined as the sum of Other Assets/Liabilities and Non-Current provisions Net cash/(debt)The net cash/(debt) is defined as cash and cash equivalents, marketable securities and other current financial asset, less borrowings. Pay-out ratio The pay-out ratio is calculated by dividing the amount of the overall dividend with the 'Adjusted Net profit from continuing operations attributable to equity holders of the parent, Group share' as presented in the management report in the consolidated financial statements. Organic basis This press release includes performance indicators presented on a reported basis and on an organic basis. Figures given on an organic basis eliminate the impact of changes in scope of consolidation and changes resulting from the translation of the accounts into Euro following the variation of foreign currencies against the Group uses figures prepared on an organic basis both for internal analysis and for external communication, as it believes they provide means to analyse and explain variations from one period to another. However, these figures are not measurements of performance under IFRS.Q1 2024/25Q1 2025/26 (in € million) Reported figures Exchange rate and scope impact Comparable FiguresReportedfigures % Var Rep. % Var Org. Orders 3,645 58 3,5874,075 11.8% 13.6% Sales 4,389 178 4,2114,514 2.8% 7.2%1 Non - GAAP. See definition in the appendix. Attachment PR Alstom Q1 2025-26 Results- EN - VFinal
Yahoo
4 days ago
- Business
- Yahoo
Saab AB (SAABF) Q2 2025 Earnings Call Highlights: Record Sales Growth and Upgraded Guidance
Order Intake: 28 billion SEK, a 32% increase compared to the same quarter last year. Sales Growth: 30.4% year-over-year at the group level, marking the strongest second quarter ever. EBIT Growth: 48.5% increase at the group level, with a positive trend in EBIT margin reaching 9.4% over the last 12 months. Cash Flow: Negative 1.2 billion SEK for the first half of the year, an improvement from negative 4.2 billion SEK last year. Backlog: Increased by 8% year-over-year to 198 billion SEK, with 71% from Dynamics and Surveillance. EPS: Increased from 1.85 SEK to 2.83 SEK this quarter. Gross Margin: Declined due to higher corporate costs related to IT security and digitalization efforts. Net Liquidity Position: Positive, amounting to almost 700 million SEK. Equity to Asset Ratio: 37.7%, indicating a solid balance sheet. Guidance Upgrade: Sales growth guidance increased to 16-20% for 2025, up from 12-16%. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Saab AB (SAABF) reported a strong quarter with a 32% increase in order intake compared to the same quarter last year, reaching approximately 28 billion SEK. The company upgraded its guidance for growth from 12-16% to 16-20% for the year, reflecting confidence in its ability to deliver from its backlog. Saab AB (SAABF) achieved a significant EBIT margin improvement, growing more than the top line, with a positive trend reaching 9.4% on a rolling 12-month basis. The dynamics division experienced exceptional growth, with a 72% increase in deliveries compared to the previous year, driven by strong demand and capacity ramp-up. Saab AB (SAABF) is making strategic investments in R&D and capacity expansion, including new factories in India and the US, to meet increasing market demand and maintain competitiveness. Negative Points Despite improved cash flow from last year, Saab AB (SAABF) reported a negative cash flow for the first half of the year, attributed to high inventory levels and front-loaded investments. The aeronautics division faced a decrease in EBIT margin due to startup costs for the T7 program and increased R&D and marketing expenses. The underwater systems business unit is pulling down the profitability of Saabcockums due to ongoing development and certification challenges. Gross margin declined year-on-year, mainly due to higher corporate costs related to IT security and digitalization efforts. The company faces challenges in predicting the timing of mega deals, which are subject to political and parliamentary processes in various countries. Q & A Highlights Q: Can you clarify the dynamics margin and if it will remain slightly above mid-teens over time? A: Micael Johansson, President and CEO, confirmed that the dynamics segment should maintain mid-double-digit margins over time, despite quarterly fluctuations, due to a mix of frame agreements and competitive contracts. Q: How might the US putting the AUKUS pact with Australia on hold impact Saab's Australian submarine business? A: Johansson explained that Saab's Australian submarine business is primarily focused on supporting the existing Collins class submarines, which is a small part of their operations. The impact of the AUKUS pact delay on this business is unclear, but it is not a significant portion of their Australian operations. Q: With better-than-expected progress in the first half of 2025, why not reassess the 2027 guidance? A: Johansson stated that they will continuously assess midterm targets and plan to provide updates in 2026. They are confident in the current demand and order intake but will not provide specific guidance until then. Q: How did Saab achieve such strong results in the dynamics division this quarter? A: Johansson attributed the strong results to investments in automation and new facilities, such as an autonomous facility in Sweden and new factories in India and the US. These improvements have enhanced production capacity and efficiency. Q: Are you investing at a fast enough pace to meet demand and order intake in dynamics and surveillance? A: Johansson assured that Saab is forward-leaning in investments to meet capacity demands, both in production facilities and R&D. They are confident in their competitive position and are continuously improving their capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
3M Co (MMM) Q2 2025 Earnings Call Highlights: Strong EPS Growth Amidst Global Challenges
Adjusted Earnings Per Share (EPS): $2.16, up 12% year-over-year. Organic Sales Growth: 1.5% across all business groups. Operating Margins: Increased by 290 basis points year-on-year. Free Cash Flow: $1.3 billion with a 110% conversion rate. Revenue Growth by Geography: China up mid-single digits; US up low single digits; Europe flat. Adjusted Operating Margins: 24.5%, up 290 basis points. Safety and Industrial Organic Sales Growth: 2.6% in Q2. Transportation and Electronics Organic Sales Growth: 1% in Q2. Consumer Business Organic Sales Growth: 0.3% in Q2. Shareholder Returns: $3 billion returned via dividends and share repurchases in the first half. Updated EPS Guidance: Increased to a range of $7.75 to $8.00. Free Cash Flow Conversion Guidance: Expected to be higher than 100% for the year. Warning! GuruFocus has detected 6 Warning Signs with MMM. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points 3M Co (NYSE:MMM) reported a strong second quarter with adjusted earnings per share of $2.16, up 12% from the previous year and exceeding expectations. The company achieved organic sales growth of 1.5%, marking the third consecutive quarter of positive growth across all business groups. Operating margins increased by 290 basis points year-on-year, driven by productivity improvements and cost controls. 3M Co (NYSE:MMM) launched 64 new products in Q2, a 70% increase from the previous year, contributing to a healthy product pipeline. The company returned $3 billion to shareholders in the first half of the year through dividends and share repurchases, demonstrating strong capital deployment. Negative Points The macroeconomic environment remains sluggish, with global economic indicators such as IPI and GDP showing little improvement. The automotive and consumer electronics sectors are expected to face challenges in the second half due to slower demand and industry pressures. 3M Co (NYSE:MMM) faces ongoing legal challenges related to PFAS, with over 30 state attorney general cases still pending. The company anticipates a gross tariff impact of $0.20 per share for the year, which will affect second-half margins. Stranded costs are expected to increase in the second half, impacting overall profitability. Q & A Highlights Q: Can you discuss the impact of new product launches on margins and growth, and when you expect to see growth above your end markets? A: William Brown, CEO: We are seeing improvements in our 5-year sales, up 9% in the first half and expected to reach 15% for the year. We launched 64 new products in Q2, up 70% from last year. We expect these innovations to improve both growth and margins as they stabilize in production and deliver better customer value. Q: How are you managing operational costs, and what are the sources of operational upside? A: William Brown, CEO: We are achieving about $0.5 billion in productivity, split between G&A and supply chain improvements. This includes cost per quality reductions, procurement savings, and better cost controls. Anurag Maheshwari, CFO, added that IT optimization and indirect expense management are key areas of G&A savings. Q: Can you elaborate on the tariff impacts and how they are being managed in your guidance? A: William Brown, CEO: We have included a $0.20 net tariff impact in our guidance, offset by cost and sourcing changes and pricing. The gross impact is about $140 million, with half offset by cost savings and sourcing, and the other half by price adjustments. Q: What are your expectations for the second half of the year in terms of organic growth and margins? A: Anurag Maheshwari, CFO: We expect approximately 2.5% organic growth in the second half, with similar growth in Q3 and Q4. Margins are expected to be around 22.5% in the second half, impacted by tariffs, stranded costs, and increased investments, but still showing year-over-year improvement. Q: How is the PFAS litigation progressing, and what are your thoughts on the potential liabilities? A: William Brown, CEO: We settled with New Jersey for site-specific and statewide claims, spreading payments over 25 years. We are managing over 30 other state AG cases and personal injury suits. We are exiting PFAS manufacturing by year-end and maintaining cash flexibility to handle these issues. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
