FirstGroup (FGP) Trading update summary

Trading performance

• Bus and rail divisions are trading in line with expectations, supported by growth in business and coach operations and successful cost mitigation actions.

• Recent acquisitions of J & B Coaches in Leeds and Hills Coaches in Wolverhampton have expanded the operational footprint and contract portfolio in key markets.

• Lumo has launched extended services between Edinburgh and Glasgow, with new London Euston to Stirling service on track for July 2026.

• London Overground contract mobilisation is progressing ahead of the May 2026 start date.

Financial guidance and risk management

• Modest growth in adjusted earnings per share is anticipated for FY 2026.

• Adjusted net debt at year-end FY 2026 is expected to be £135-145m, reflecting recent acquisitions and network optimisation.

• Fuel and electricity hedging covers approximately 88% of FY 2027 fuel needs and 77% of electricity, with significant coverage for FY 2028 as well.

Strategic initiatives and outlook

• Focus remains on executing a UK growth strategy, expanding open access rail services, and delivering on commitments for FY 2026.

• Continued investment in operational and asset footprint to support positive earnings trajectory.