Alstom's board will not welcome Henri Poupart-Lafarge in his new role.

In the face of railway industry challenges, the CEO, who has been in charge since 2016, will not pursue a fourth term when his current tenure ends in 2027.

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2025 May 23 . 8:17 AM

2 min read

The long-serving leader of the railway group, who has been in charge since 2016, has decided not to... — The long-serving leader of the railway group, who has been in charge since 2016, has decided not to vie for a fourth term once his existing tenure wraps up in 2027, amid ongoing industrial struggles.

Alstom's board will not welcome Henri Poupart-Lafarge in his new role.

** Hey there, listening in on some biz news now!**

On a hump day, May 14, Alstom spilled the beans about their 2024-2025 financial year figures, wrapping up in March. CEO, Henri Poupart-Lafarge, tooted their horn, praising the company's grit, which took a hit in recent years thanks to the pricey Bombardier buyout in 2021. "These numbers are spot on with our gameplan. We're still making moves according to our action plan," he bragged, adding that Alstom's objective, under his leadership since 2016, is to hit an operational margin of 8-10% by 2026.

But investors didn't feel the same way and took a long, hard dump on Alstom's stock prices, slashing 'em by 16% on the 14th.

A couple days roll by, and Alstom dropped another bombshell—Henri Poupart-Lafarge ain't seeking another four-year term as CEO. His gig'll end in 2027, and this'll be his last ride. The board gave Poupart-Lafarge major props for his top-notch management, resulting in solid annual results. On May 16, they released a statement stating Poupart-Lafarge will stay CEO until a successor is found. But according to L'Information, the board gave Poupart-Lafarge the old heave-ho, looking for a new CEO, and a decision's expected in July.

So, they got a spot open for a CEO, and analysts reckon the new guy might come from outside the company, with recent changes in the leadership structure.

Just a heads up, you can read more in Alstom announces a €150 million industrial investment in France if you're a subscriber!

Sources:

[1] Alstom annual results for 2024-2025 financial year
[2] Henri Poupart-Lafarge's exit and the search for a new CEO
[3] Alstom's board initiates the process to find a new CEO
[4] Poupart-Lafarge pushed out by the board of directors
[5] Successor to Henri Poupart-Lafarge yet to be announced.

In light of the financial results for the 2024-2025 financial year, it's clear that Alstom's business strategy heavily relies on transport sector capital.

Given the recent changes in the leadership structure at Alstom, the search for a new CEO who could potentially bring fresh ideas to the table, especially in the areas of finance and business strategy, will be a crucial decision moving forward.