Construction disaster at Alstom

Investors are selling Alstom shares, causing a valuation drop of over one-third to nearly 11 euros. This follows the company's preliminary results for the first half of 2026/27, revealing a loss of 1.2 billion euros in free cash flow. Alstom announced a new 2 billion euro short-term revolving credit agreement with a high-rated international bank, set to mature in November 2028. The company acknowledged additional technical issues with the Coradia Max platform, leading to production halts to address identified defects. Despite securing 11 billion euros in orders this year, Alstom warned of a significantly reduced EBIT margin of 1% for the fiscal year, down from a previously projected 6.5%.