PARIS, May 14, 2025 (BSS/AFP) - French train maker Alstom returned to profit last year as it rode strong demand for rail travel, the company said Wednesday, but its shares sank as its financial target disappointed investors.

The group reported a net profit of 149 million euros ($168 million) for the 2024-2025 fiscal year, reversing a loss of 309 million euros the previous year.

It said sustained demand in the railway market, particularly in Europe, had driven an annual revenue increase of nearly five percent, to 18.5 billion euros.

With world trade in turmoil over US President Donald Trump's tariffs, Alstom, which acquired the rail business of Canadian group Bombardier in 2021, said it was relatively protected thanks to its global production strategy.

"Local manufacturing has been a guiding principle when building and growing the business in the last decade," chief executive Henri Poupart-Lafarge said in a call with analysts.

"Local production is very often an important factor in winning large tenders. This has been the case in India, Australia and of course in the US for a long time."

The group said it was targeting efficiency gains and high-value orders next year that would fuel operating margin growth of eight to 10 percent.

But investors were underwhelmed by the target, and Alstom shares fell more than 15 percent in early trading in Paris.