The French train manufacturer Alstom obtained a €2 billion ($2.4 billion) contract from New York’s Metropolitan Transportation Authority (MTA) to deliver 316 railcars for two major commuter rail lines in the city.
The MTA announced the contract in June during Alstom’s second fiscal quarter to purchase 160 M-9A railcars for the Long Island Rail Road and 156 railcars for the Metro-North Railroad. The first delivery of pilot units will begin in 2029 with the complete deployment scheduled for 2032.
The MTA capital plan includes a $10.9 billion budget that will fund the acquisition of approximately 2,000 new railcars throughout the upcoming years. MTA Chair Janno Lieber declared that the Alstom agreement represents an essential move toward updating New York City’s transit vehicle fleet.
The deal provides Alstom with essential growth following a disappointing start to its fiscal year. Visible Alpha’s consensus of €5.1 billion in orders will be surpassed by Redburn Atlantic analyst James Moore who predicts Alstom will achieve more than €6 billion in Q2 orders.
The stock price of Alstom remained unchanged after a small increase occurred during the initial Paris trading session. The new contract helps Alstom maintain its position as a leading rail supplier in North America while solidifying its position as a major player in the worldwide rail industry.
