FirstGroup (FGP) H2 2025 earnings summary

Executive summary

• Group-adjusted revenue grew 7% to £1.4bn, with adjusted EPS up 16% to 19.4p, reflecting strong operational delivery and strategic execution.

• Full-year dividend increased 18% to 6.5p per share, with an additional £50m share buyback announced.

• Significant progress in bus and open-access rail, including the acquisition of RATP London Bus Operations and new open-access rail track access agreements.

• Upgraded to MSCI's highest ESG ranking (AAA) and published the first Climate Transition Plan, with recognition in major sustainability indices.

• £500m order placed for UK-manufactured Hitachi trains, supporting portfolio diversification.

Financial highlights

• Adjusted operating profit rose 9.1% to £222.8m; adjusted profit before tax up 18.8% to £165.1m.

• Free cash flow before acquisitions and returns to shareholders more than doubled to £113.5m.

• Adjusted net debt was £86.9m at year-end, compared to net cash of £64.1m prior year, reflecting acquisitions and shareholder returns.

• £126m returned to shareholders via dividends and buybacks; final dividend of 4.8p proposed.

• £230m invested in capex and growth over the last 12 months.

Outlook and guidance

• Expect to at least maintain adjusted EPS in FY2026, supported by a more diverse earnings base despite SWR nationalization.

• Bus business anticipates sequential operating profit growth, with annual revenues expected around £1.4bn in FY2026.

• Open access and additional services in rail expected to deliver results ahead of FY2025, offset by lower DfT TOC management fees and mobilisation costs.

• CapEx guidance of ~£150m in FirstBus, mainly for electrification and decarbonisation.

• Anticipated year-end adjusted net debt of £120m–£130m after dividends and buybacks.