FirstGroup (FGP) H2 2024 earnings summary

Executive summary

• Achieved strong financial results for FY2024, with adjusted EPS up 44% to 16.7p and robust performance in both bus and rail segments, supported by a refreshed strategy and disciplined capital allocation.

• Adjusted operating profit increased 27% to £204.3m, driven by growth in both First Bus and First Rail.

• First Bus revenue rose 12% due to higher passenger volumes and operational improvements; First Rail open access revenue up 41%.

• Electrification and sustainability initiatives advanced, with 13% of the bus fleet now zero emissions, three fully electric depots, and recognition for sustainability leadership.

• Significant cash generation and pension liability reduction, with c.£1bn of gross pension liabilities removed or insured.

Financial highlights

• FY2024 revenue was £4,715.1m, down 1% year-over-year, with adjusted operating profit up 27% to £204.3m and adjusted earnings up 29% to £110.7m.

• Adjusted EPS was 16.7p, up 44%, and dividend per share was 5.5p, up 45% from the prior year.

• Adjusted net cash at year-end was £64.1m, down from £109.9m, reflecting strong cash generation and £118m in share buybacks.

• First Bus adjusted operating profit was £83.6m, up 43%, and First Rail adjusted operating profit was £143.3m, up 15%.

• Hull Trains and Lumo revenue rose 41% to £99.8m, with adjusted operating profit up 53% to £30.0m.

Outlook and guidance

• FY2025 outlook is in line with expectations, with continued improvement in earnings mix and margin expansion, especially in bus, and strong performance expected in rail.

• CapEx of ~£120m net of grants is planned for bus electrification, with 18% of the fleet expected to be electric by year-end.

• Anticipated net cash position of £40m–£50m at FY2025 year-end after dividends and share buybacks.

• Final dividend of 4.0p per share proposed, maintaining a progressive dividend policy.