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FirstGroup (FGP) investor relations material

FirstGroup H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary10 Jun, 2025

Executive summary

  • Achieved strong growth and diversification, with adjusted revenue up 7% to £1.4bn and adjusted EPS up 16% to 19.4p year-over-year.

  • Board proposed a final dividend of 4.8p, full year dividend up 18% to 6.5p, and announced an additional £50m share buyback.

  • Significant progress in bus and open access rail, including the acquisition of RATP's London bus operations and new open access rail agreements.

  • Placed a £500m order for UK-manufactured Hitachi trains, supporting UK growth and decarbonization.

  • Achieved MSCI AAA ESG rating and published the first Climate Transition Plan.

Financial highlights

  • Adjusted operating profit up 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 at £86.9m at year-end, compared to net cash of £64.1m prior year.

  • £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 despite SWR nationalization, supported by a more diverse earnings base.

  • Bus business anticipates sequential operating profit growth, with margins lower due to London acquisition but higher annual revenues (~£1.4bn expected in FY2026).

  • Open Access Rail and additional services expected to deliver results ahead of FY2025, with new routes launching in 2026 and 2027.

  • CapEx guidance of ~£150m in First Bus, mainly for electrification; expect adjusted net debt of £120–130m at FY2026 year-end.

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Frequently asked questions

FirstGroup plc provides public transport services in the United Kingdom and the United States. The company operates through First Bus and First Rail segments. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, TransPennine Express, and Avanti West Coast franchises; passenger rail services; and hull trains and Lumos. The First Bus segment offers local bus services with a fleet of approximately 4,900 buses in the United Kingdom.

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