Alstom Stock Plummets Amid Cash Flow Woes and Project Delays
Shares of Alstom fell 30% after the company withdrew its three-year cash flow forecast, the second major setback in 2023. Struggling with project delays, Alstom's financial health is under scrutiny, with talks of potential capital raising or credit rating downgrade looming.
French train maker Alstom experienced a dramatic 30% drop in its shares on Friday following the removal of its three-year cash flow forecast. This marks the second significant financial warning in 2023 under newly appointed CEO Martin Sion, who is tackling ongoing project delays impacting the company's short-term profitability and cash flow.
Once valued at 10 billion euros, Alstom has seen its market worth slashed by half since February, its stock now at a third of its early 2021 level. Preliminary results have forced a cut in its 2026/27 profit margin target and withdrawal of a 1.5 billion euros free cash flow target for the three years ending that fiscal year.
Sion, appointed recently, revealed execution challenges across multiple long-term projects. As market speculation grows around potential capital raises, some analysts remain skeptical, suggesting no immediate liquidity moves are expected, despite Alstom being a heavily shorted stock in the STOXX 600 index.
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