Firstgroup Plc (LON:FGP) has reported adjusted revenue up 25% to £1,716m, with strong underlying performance in both divisions.
Successful execution of proven UK-focused growth and diversification strategy has driven further earnings and portfolio growth, and material shareholder returns.
Financial Highlights
| • | Group adjusted revenue up 25% to £1,716m, with strong underlying performance in both divisions | |
| • | Group adjusted operating profit of £219.4m, marginally lower: | |
| – | continued profit growth in First Bus, with First Rail lower due to additional costs in open access, the transition of SWR in May 2025 and a £7m lower IFRS 16 adjustment in the DfT TOCs | |
| – | excluding the DfT TOCs, Group adjusted operating profit grew 18% | |
| • | c.£9m of Group cost savings delivered in FY 2026 from business restructuring | |
| • | Adjusted EPS increased to 20.3p (FY 2025: 19.4p) | |
| • | Strong cash conversion and balance sheet maintained; adjusted year-end net debt of £138m | |
| – | free cash flow of £73.8m before acquisitions and returns | |
| – | c.£35m growth investment and accelerated capex of c.£190m principally on First Bus electrification | |
| – | £89m returned to shareholders via dividends and FY 2026 £50m buyback programme | |
| • | Final dividend of 5.0p per share proposed with FY total of 7.2p (FY 2025: 6.5p); policy tightening towards 2.5x cover ratio over time | |
| • | Further £100m buyback programme announced; expected to complete over next 12 months | |
| • | Free cash generation of c.£400m anticipated over the next three years | |
| FY 2026 (£m) | FY 2025 (£m) | ||||||
| Cont. | Disc. | Total | Cont. | Disc. | Total | ||
| Adjusted Revenue1 | 1,715.7 | – | 1,715.7 | 1,370.0 | – | 1,370.0 | |
| Adjusted operating profit/(loss) 2 | 219.4 | 2.1 | 221.5 | 222.8 | (0.6) | 222.2 | |
| Adjusted operating profit margin | 12.8% | 12.9% | 16.3% | 16.2% | |||
| Adjusted profit/(loss) before tax2 | 156.7 | 2.1 | 158.8 | 165.1 | (0.8) | 164.3 | |
| Adjusted EPS 3,4 | 20.3p | 0.4p | 20.7p | 19.4p | (0.1)p | 19.3p | |
| Dividend per share | 7.2p | 6.5p | |||||
| Adjusted net debt5 | 137.7 | 86.9 | |||||
| FY 2026 (£m) | FY 2025 (£m)(restated6) | ||||||
| Statutory | Cont. | Disc. | Total | Cont. | Disc. | Total | |
| Revenue | 4,751.9 | – | 4,751.9 | 5,233.9 | – | 5,233.9 | |
| Operating profit | 219.4 | 2.1 | 221.5 | 222.6 | 4.9 | 227.5 | |
| Profit before tax | 158.8 | 169.6 | |||||
| EPS4 | 21.4p | 21.3p | |||||
| Net debt | 725.3 | 985.6 | |||||
| – Bonds, bank and other debt net of (cash) | (124.7) | (228.8) | |||||
| – IFRS 16 lease liabilities | 850.0 | 1,214.4 |
‘Cont.’ refers to the continuing operations comprising First Bus, First Rail, and Group items. ‘Disc.’ refers to discontinued operations, being First Student, First Transit and Greyhound US.
First Bus Highlights
| • | Total revenue up 33% to £1,443.6m | ||
| • | Adjusted operating profit up 7% to £102.8m despite £26m decrease in fare funding, lower passenger volumes and c.£15m impact of increased employer National Insurance contributions | ||
| • | Regional Bus passenger volumes decreased by 3% vs. FY 2025; 4% increase in concessions offset 6% decline in commercial volumes mainly due to the transition to £3 fare cap and lower consumer confidence | ||
| • | 1.07 million Regional Bus passenger journeys a day (FY 2025: 1.13 million) | ||
| • | Continued focus on performance, growth and diversification: | ||
| – | Regional Bus lost mileage down 17% to 1.5% and Net Promoter Score up from 11 to 17 | ||
| – | Franchise revenues of £322.2m, includes £310m from First Bus London, supported by disciplined contract bidding and strong operational performance | ||
| – | Business and Coach revenue grew 28% to £230.1m | ||
| – | acquisition of three well-established coach businesses to further grow Business and Coach operational and asset footprint in key markets; two further acquisitions post-period end | ||
| – | successful launch and extension of Flixbus services | ||
| • | Leading in electrification and unlocking adjacent revenue opportunities: | ||
| – | 26% of our UK bus fleet zero emission (43% of red buses in London) at end of March 2026 | ||
| – | four fully electric depots and 17 further depots substantially electrified across the UK; third party charging underway at fifteen depots | ||
| – | minority investment in Palmer Energy Technology to bring battery energy storage units to our depots | ||
First Rail Highlights
| • | 3.1 million open access passenger journeys up 4% vs. FY 2025 | |
| • | Open access revenue increased to £109.3m (FY 2025: £106.4m); pence per seat mile 11.1p in line with FY 2025 (11.1p) | |
| • | Open access adjusted operating profit of £25.6m (FY 2025: £34.1m) includes Stirling mobilisation costs of £(6.3)m and a c.£2m increase in Lumo’s infrastructure charge; H2 2026 margin was also impacted by increased capacity and price competition on East Coast Main line and lower consumer confidence impacting passenger demand | |
| • | Further growth in Rail Services (Mistral, FCC and First Rail Consultancy) revenue during FY 2026 | |
| • | DfT TOCs financial performance in line with expectations; SWR transferred to DfTO in May 2025 | |
| • | Award of London Overground contract in December 2025, with mobilisation on 3 May 2026; anticipated annual revenues of c.£300m over eight-year contract period and optional two-year extension | |
| • | On course to more than double open access capacity over the next two to three years: | |
| – | launch of Lumo Glasgow extension and additional paths on Hull Trains and Lumo from December 2025 | |
| – | Lumo’s new Stirling-London service will be fully operational from July 2026 | |
| – | further growth in FY 2029 with new London-Carmarthen service and ten car operations on Lumo East Coast service | |
| – | applications for an additional c.1bn annual seat miles under review by the regulator | |
Outlook
| • | Following a stronger outturn in FY 2026, the Group expects to maintain Adjusted EPS in FY 2027, from a higher quality earnings base | |
| – | First Bus: revenue expected to grow to just over £1.5bn, with further progress in FY 2027 adjusted operating profit; c.£140m of accelerated decarbonisation investment in FY 2027 | |
| – | First Rail open access: FY 2027 anticipated revenue of c.£130-150m, with adjusted operating profit margin to progress to mid-teens following c.2-year Stirling and Carmarthen mobilisation and ramp up period | |
| – | London Overground: anticipated revenue of c.£300m in FY 2027 | |
| – | DfT TOCs: lower adjusted revenue following transfer of SWR in May 2025 and GWR transfer on 13 December 2026; WCP transition expected around end of FY 2027 | |
| • | Free cash generation of c.£400m anticipated over the next three years; includes c.£90m cash inflow from DfT TOCs and Rail Services as GWR and WCP transition | |
| • | The Group will actively participate in regional bus franchising opportunities and continues to evaluate a strong pipeline of bus and rail growth opportunities in line with our UK-focused growth strategy | |
Commenting, Chief Executive Officer Graham Sutherland said:
“Our strong performance in FY 2026 against significant headwinds has reinforced our track record for delivery and shareholder returns. Looking ahead, our focus on operational excellence and our diverse portfolio, robust asset base and cash generative businesses will enable continued growth and scope for further, material returns.
“As the UK bus and rail industries evolve over the coming years, we will continue to position the Group as a leading UK transport company with the commitment, expertise, scale and financial strength to build active, long-term partnerships to create better transport services.”
Results presentation and webcast
A presentation and webcast for investors and analysts will be held at 09:00 (BST) today in London. To register to join in person or to request the webcast details, please email [email protected]. To access the presentation to be discussed on the webcast, together with a pdf copy of this announcement, go to www.firstgroupplc.com/investors. A playback facility will also be available there in due course.
