FirstGroup (FGP) H1 2026 earnings summary

Executive summary

• Adjusted revenue rose 30% year-over-year to £834m, driven by FirstBus growth, FirstBus London acquisition, and open access and Rail Services progress.

• Adjusted EPS increased 16% to 9.9p, supported by share buybacks and cost efficiencies.

• Interim dividend of 2.2p per share, up 29% year-over-year.

• Strategic focus on operational delivery, U.K. growth, diversification, and sustainability, with significant investment in decarbonisation and fleet electrification.

• £76m returned to shareholders via buybacks and dividends in the half-year.

Financial highlights

• Group-adjusted operating profit up 2.8% to £103.6m; adjusted profit before tax up 7.8% to £76.3m.

• EBITDA of £181.4m generated before DfT TUX cash inflows.

• Adjusted net debt at period end was £207.6m, with a year-end forecast of £125–135m.

• Free cash flow was an outflow of £35.6m, mainly due to accelerated bus electrification CapEx and government funding utilization.

• Interim dividend increased 29% to 2.2p per share.

Outlook and guidance

• Modest adjusted EPS growth expected for FY 2026, with at least maintenance of this level in FY 2027.

• Bus business anticipates sequential operating profit growth, with annual revenue expected above £1.4bn in FY26, including £300m from First Bus London.

• H2 EBIT margin in regional bus expected to normalize to around 10%, with further efficiencies offsetting inflation and higher NI contributions.

• CapEx in bus to normalize around £100m per annum, with current elevated levels due to electrification and grant funding; FY 2026 net capex expected at £180m.

• Adjusted net debt forecasted at £125–135m by year-end, before further M&A.