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Group Adjusted Revenue: Increased by 25% to over GBP1.7 billion.

Adjusted Earnings Per Share (EPS): Increased by 5% to 20.3p.

Full Year Dividend: Proposed at 7.2p per share, an increase of 11% from the prior year.

Share Buyback Programme: Announced a further GBP100 million share buyback.

Adjusted Operating Profit: GBP219.4 million, broadly flat year on year.

Adjusted Net Debt: GBP137.7 million at year-end.

Return on Invested Capital (ROIC): 10.7%, up 80 basis points.

Free Cash Flow: Generated just short of GBP74 million.

Bus Revenue: Increased to GBP1.4 billion.

Bus Adjusted Operating Profit: GBP103 million, up 7%.

Bus Adjusted Operating Profit Margin: 7.1%.

Open Access Rail Revenue: Increased by 3%.

Open Access Adjusted Operating Profit: GBP26 million.

Capital Expenditure (CapEx): GBP189.9 million net of grant funding.

Cash Generated by Operations: GBP266.2 million, up 25% year on year.

Release Date: June 18, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

FirstGroup PLC (FGROF) reported a 25% increase in group-adjusted revenue, reaching over GBP1.7 billion, driven by growth in First Bus revenues and the acquisition of First Bus London.

The company announced a further GBP100 million share buyback program, expected to be completed over the next 12 months.

FirstGroup PLC (FGROF) has been recognized for its market-leading credentials in sustainability, particularly in bus fleet and infrastructure electrification.

The company has a strong pipeline of inorganic UK growth opportunities, building on its execution capability from previous years.

FirstGroup PLC (FGROF) anticipates delivering around GBP400 million in free cash generation over the next three years, supported by earnings growth in bus and open access rail.

Negative Points

The group adjusted operating profit was broadly flat year on year, despite a 25% increase in adjusted revenue, due to inflationary cost increases and other financial impacts.

FirstGroup PLC (FGROF) faced a GBP16 million impact from national insurance changes and GBP6 million in business development costs for open access mobilization.

The rail adjusted operating profits decreased by GBP18.9 million, primarily due to SWR being nationalized and lower IFRS 16 adjustments.

The company experienced a 6% decline in commercial bus volumes, attributed to fare cap changes and lower consumer confidence.

Open access rail faced increased competition from LNER, impacting profitability despite maintaining seat mile utilization.

Story Continues

Q & A Highlights

Q: On the expectation that bus CapEx moderates to GBP80 million to GBP100 million, should we think of that as a sub-maintenance level? Would that imply aging of the fleet? A: Graham Sutherland, CEO: We’ve worked hard over the last few years to bring down fleet age. We’re comfortable with where we are now and believe the CapEx envelopes we’re setting out will enable us to maintain that into the future.

Q: On bus margins trending towards 8-9%, how will franchising impact this? A: Graham Sutherland, CEO: The mix of the business will determine margins. Some parts will have higher margins, while franchising will be lower. We expect continued growth opportunities, allowing us to grow both margin percentage and revenue.

Q: What happens when the current GBP3 fare cap expires? A: Graham Sutherland, CEO: The relative levels of funding from the GBP3 fare cap are now very small. If it disappears, it wouldn’t have a major impact on our business. We maintain good relationships with the government to discuss potential initiatives.

Q: On open access rail, how do you maintain competitiveness and profitability amid increased competition on the East Coast mainline? A: Graham Sutherland, CEO: We focus on seat mile utilization and have maintained our volumes despite increased competition. We have a competitive platform and great service, and we believe competition will continue but are confident in our competitiveness.

Q: Could you give us some color on the phasing of the GBP400 million free cash flow over the next three years? A: Ryan Mangold, CFO: The GBP400 million is balanced, with GBP90 million expected from DfT train operating companies. Bus CapEx is slightly higher due to grant funding success. The cash generation will support continued investment, improving business quality over time.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.