Alstom, the train manufacturer supplying the London Underground, has seen its profit cut by nearly £100m as turnover significantly decreased during its most recent financial year.
The Derby-based firm reported a pre-tax profit of £21.9m for the 12 months to 31 March, 2025, a sharp drop from the £121m it posted in the previous year, as reported by .
Recently filed accounts at Companies House reveal that its turnover also fell from £672.8m to £555.4m over the same period.
These declines follow a period where Alstom's turnover had risen from £489.4m in the year to 31 March, 2023, and its pre-tax profit had increased from £60.8m.
The new financial statements also indicate that the value of orders received by Alstom in the year dropped from £181.9m to £164.4m, while its dividend was reduced from £210m to £30m.
The company is the largest supplier of new trains in the º£½ÇÊÓƵ and Ireland, operating a major factory in Derby and other sites in Widnes, Crewe, Ilford and Plymouth.
Alstom has constructed, or is in the process of constructing, approximately 40 per cent of the º£½ÇÊÓƵ mainline train fleet, as well as the entire fleets in service with London Underground and Dublin Luas.
Major º£½ÇÊÓƵ companies utilising Alstom's trains include Avanti West Coast and Greater Anglia.
The wider Alstom group, which originated in France in 1928, reported sales of €18.5bn for the same financial year, with earnings before interest expenses and income taxes totalling €1.1bn.
Alstom's plans for train service rejected
A board statement revealed: "Revenue and profitability in the prior year was significantly impacted by revised estimates of total contract profitability on certain contracts leading to a back-trading impact on sales.
"Both the current year and prior year were also impacted by assumptions over the expected duration of long-term maintenance contracts."
Alstom further explained: "Orders received by the company can fluctuate significantly year on year as there are typically a relatively low number of high-value orders, as well as the fact that orders are in respect of contracts of a long-term nature."
These figures emerge following Alstom's announcement in March 2024 of plans to launch its own passenger rail operation in the º£½ÇÊÓƵ.
Operating under the banner Wrexham, Shropshire and Midlands Railway (WSMR), in collaboration with SLC Rail, the service aimed to connect North Wales, Shropshire, the Midlands and London from this year.
Nevertheless, the Office of Rail and Road (ORR) turned down the proposals in July, citing inadequate network capacity on the West Coast Main Line.
Earlier in 2024, Alstom's Derby facility faced an uncertain future before being secured through two substantial contract wins.
