Alstom slides after free cash flow warning

(Sharecast News) - Alstom shares tumbled on Thursday after it cautioned that free cash flow was set to turn negative this year due to a rolling stock program delay in the UK and order intake delays. For FY203/24, the French train manufacturer guided to a range of negative free cash flow of €500m to €750m, having previously said it would be "significantly positive".

In its preliminary results for the first half, Alstom said free cash flow was negative €1.15bn, compared to negative €45m in the same period a year earlier.

Among the factors affecting free cash flow - aside from usual seasonality - Alstom pointed to a delay in completing the Aventra program in the UK, with completion now expected in the beginning of fiscal year 2024/25.

It also noted a drop in the level of downpayments compared to the same period last year due to weaker-than-expected orders booked in the first half.

At 1000 BST, the shares were down 35% at €14.02.