Reduced Profits Reported at Alstom, Manufacturer of Trains for London Underground
Alstom, the French train manufacturer with a history dating back to 1928, has faced a series of challenges in its plans to expand its operations in the UK.
In March 2024, Alstom announced its plans to operate its own passenger rail service in the UK, partnering with SLC Rail. However, these plans were met with a rejection in July of the same year, due to insufficient network capacity on the West Coast Main Line.
Despite this setback, Alstom continues to be a significant player in the UK and Irish rail market. The company has built, or is building, around 40% of the UK mainline train fleet, as well as the entire fleets in service with London Underground and Dublin Luas. Major UK companies using Alstom's trains include Avanti West Coast and Greater Anglia.
However, the company's financial performance for the latest financial year, which ended on 31 March, 2025, showed a decline. The value of orders Alstom received decreased from £181.9m to £164.4m, and the turnover decreased from £672.8m to £555.4m. The group posted sales of €18.5bn for the same financial year, but the earnings before interest expenses and income taxes totaled €1.1bn, down from €1.5bn in the previous year.
In an effort to conserve cash, Alstom cut its dividend from £210m to £30m in the latest financial year. The company also reported a pre-tax profit of £21.9m for the financial year ending 31 March, 2025, down from £121m in the previous year.
Further setbacks came in July 2025, when the proposals for Alstom to operate its own passenger rail service in the UK under the name Wrexham, Shropshire and Midlands Railway (WSMR) were rejected by the Office of Rail and Road (ORR). These proposals aimed to link North Wales, Shropshire, the Midlands, and London from the current year.
The rejection of the passenger rail service proposal occurred in July 2025, just a year after the initial rejection on the West Coast Main Line. Despite these challenges, Alstom's Derby factory's future was secured after two major orders were secured in early 2024, ensuring the company's continued presence in the UK rail market.
The financial accounts for the latest financial year were filed with Companies House, providing a comprehensive overview of Alstom's performance in the UK market. The wider Alstom group, with its headquarters in France, continues to be a key player in the global rail industry.
