(Reuters) -French train maker Alstom on Wednesday forecast a rise in its adjusted operating margin for the 2025/26 financial year, after it reported an annual free cash flow well above market expectations.

Alstom, which builds trains and signalling systems for urban and regional rail networks, sees an adjusted operating profit margin of 7% in the year through March 2026.

It reported a margin of 6.4% based on adjusted earnings before interest and taxes (EBIT) of 1.18 billion euros ($1.32 billion) for its fiscal 2024/25, slightly above the 1.16 billion euros expected by analysts on average.

The group, which had taken long to recover from the costly acquisition of Bombardier's rail business in 2021, reported a free cash flow of 502 million euros for the year, well ahead of the 330 million euros analysts polled by Alstom had expected.

($1 = 0.8939 euros)