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StocksHigh ImpactUpdated•Originally published 17 April 2026•Updated 17 April 2026•

1 min read

Alstom Shares Plunge 26% Following Profit and Cash Flow Warning

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Key Facts

1Alstom shares dropped 26% following a warning regarding margins and cash flow.

about 2 months ago

Version History

Version 1about 2 months ago

What changed: Updated to include the formal withdrawal of FCF guidance, the drop in valuation to below 10x P/E, and the highlight of a record €100B+ order backlog.

Shares of French trainmaker Alstom plummeted by 26%, dropping below the €17 mark after the company officially withdrew its Free Cash Flow (FCF) guidance. This sharp decline has pushed the stock's P/E ratio below 10x, leading some analysts to suggest the market reaction may be an overreaction. Despite the immediate liquidity concerns, Alstom maintains a record order backlog exceeding €100 billion, providing significant long-term revenue visibility. The financial setback is primarily attributed to execution delays on large-scale projects, which continue to weigh on near-term margins. Investors are now focused on whether management can successfully convert its massive backlog into cash flow to stabilize the balance sheet. The event remains a significant drag on the CAC40 index as the company navigates these structural operational hurdles.