Alstom, the French train manufacturer, announced on Wednesday that it has secured a framework agreement valued at up to 2.8 billion euros ($3 billion) to supply 374 new metro trains and rail technology to Hamburger Hochbahn in Germany.

According to Alstom's statement, production will commence in 2026 at the Salzgitter facility, with the initial delivery scheduled for early 2028. The first order under this agreement is estimated to be around 670 million euros.

Following the announcement, shares of Alstom increased by 3.3 percent. Analyst William Mackie from Kepler Cheuvreux commented via email, "After a lackluster trading day yesterday, Alstom's shares are reacting positively to the news of a significant order win in Germany."

Mackie also noted that this deal, which complements the over 90 billion euro backlog disclosed by Alstom in May, ensures revenue visibility through to 2026. Alstom ranks as the world's second-largest train maker, trailing only China's state-owned CRRC, and boasts an order book that includes the largest train tender in Danish rail history and a contract for the UK's HS2 high-speed railway.