Alstom’s Orders Grow 3% in The Third Quarter, Led by Renewable Segment


In Alstom’s third-quarter sales update, the company reported 1% year-over-year sales growth, while orders grew 3% over the same period. Grid was the only segment that failed to deliver revenue growth in the period, driven by customer delays as well as tough comparison to the prior year.

Similarly, Grid orders were down 6% versus the prior year, following a large order in the year-ago comparison as well as a dearth of large project orders in the third quarter. Thermal orders were down 13% in the quarter as there were fewer turn-key contracts in the quarter.

In spite of the softness in Alstom’s end markets, we continue to think the high switching costs and deep customer relationships that Alstom possesses contributes to the company’s narrow economic moat rating. While we are unlikely to make any material changes to our fair value estimate following this sales release, we will be looking to signs of growth and margin improvement in the company’s fourth-quarter release.


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