Alstom S.A (ALO) | News Based Sentiment Analysis

• On September 8, 2025, Alstom secured a significant €538 million (NZD$1,065m) contract with the Greater Wellington Regional Council in New Zealand to design, manufacture, and maintain 18 Adessia Stream B battery-electric trains for 35 years. This marks the first BEMU commuter trains in New Zealand and expands Alstom’s sustainable transportation offerings, demonstrating their ability to enter new markets with innovative technology.
• Just a day later, on September 9, 2025, Alstom announced a €1.1 billion order in the United States for railcars and locomotives, substantially boosting the company’s order intake for the quarter. This signals continued strength in the North American market, a key growth area for Alstom.
• Following the US order, J.P. Morgan estimated Alstom’s total significant orders for the quarter could reach around €4.4 billion, potentially exceeding €6 billion as of September 10, 2025, up from a previous estimate of €4.8 billion. This revised estimate reflects stronger-than-expected performance and fueled investor confidence, leading to a 6.4% stock surge on the Paris stock exchange on September 10, 2025.
• Alstom further solidified its long-term revenue streams with a 10-year maintenance contract from Delhi Metro Rail Corporation on September 12, 2025, valued at approximately €42 million. This contract covers maintenance of trains initially supplied by Bombardier, showcasing Alstom’s ability to capitalize on existing infrastructure and expand its service offerings.
• Demonstrating a commitment to innovation, Alstom successfully completed the world's first journey with a diesel-to-hydrogen converted shunting locomotive in Salzgitter, Germany on September 19, 2025. This modernization solution, developed with partners, is undergoing testing and is expected to save approximately 150 tonnes of CO2 per locomotive annually.
• Analysts suggest Alstom is currently undervalued by approximately 7.7%, with an estimated fair value of €23.06 as of September 17, 2025, based on expectations of future growth and efficiency improvements. However, StockInvest.us downgraded its analysis conclusion from a “Strong Buy” to a “Buy candidate” on September 19, 2025, citing minor technical weaknesses.
• Institutional shareholders collectively own 56% of Alstom S.A. as of September 7, 2025, with the top 8 shareholders controlling 51% of the business. Insider ownership remains low, at less than 1%, totaling €4.5 million in shares.
• Alstom’s stock price experienced a decline of -1.46% on September 19, 2025, closing at €20.94, but recovered to €21.39 by September 22, 2025. Despite a recent fall over 6 of the last 10 days, the stock was up by 4.54% over the preceding two weeks, with a 2 million share volume increase on falling prices.

The Investment Story: September was a strong month for Alstom, marked by significant contract wins, a commitment to sustainable technology, and positive, though slightly mixed, analyst sentiment. The company continues to demonstrate its ability to secure both new business and long-term maintenance contracts, driving revenue growth and bolstering investor confidence.

What It Means for Investors: The recent positive momentum, coupled with the undervaluation narrative, suggests Alstom is successfully executing its strategy and overcoming past challenges. While the analyst downgrade introduces a note of caution, the expanding order backlog and strategic investments position the company for continued growth and potentially higher valuations.

Looking Ahead: Investors should closely monitor Alstom’s ability to translate its growing order backlog into revenue and track the progress of its hydrogen technology initiatives. Continued positive analyst revisions and strong performance in key markets will be crucial indicators of future success.

The Bottom Line: Alstom’s September performance confirms a clear turnaround story, driven by strategic contract wins, a focus on sustainable mobility solutions, and effective operational execution. Despite a minor stock price dip, the improving outlook and positive market sentiment suggest the stock has significant upside potential.