FirstGroup (FGP) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 financial and operational results, with robust revenue growth, margin expansion in bus and rail, and portfolio diversification through organic and inorganic growth.

• Strategic focus on electrification, sustainability, and decarbonisation, supported by significant investments and an upgrade to MSCI's AAA ESG rating.

• Announced a new £50 million share buyback and a 13% increase in interim dividend to 1.7p per share, reflecting confidence in future growth.

• Continued to pursue organic and inorganic growth, including acquisitions in bus and open access rail, and expansion of Adjacent Services.

• Fully discharged legacy US Greyhound pension obligations, recognising a £5.5m net settlement gain.

Financial highlights

• Adjusted revenue up 2.3% to £649.6m; adjusted operating profit stable at £100.8m; adjusted EPS up 4.9% to 8.5p per share.

• Interim dividend increased to 1.7p per share (+13% YoY); £125m returned to shareholders via buybacks and dividends in the last 12 months.

• Adjusted net debt at £0.2m after significant capex and buybacks; £165m invested in capex and growth over 12 months.

• Adjusted profit before tax was £70.8m; statutory profit before tax £70.3m.

• Strong cash generation: £72.1m from operations in H1 2025.

Outlook and guidance

• FY 2025 trading and outlook slightly ahead of previous expectations; First Bus targeting 10% adjusted operating margin in H2 2025.

• First Rail performance anticipated slightly ahead of prior expectations, driven by open access growth.

• Adjusted EPS expected to be maintained in FY 2026, with growth in First Bus and open access rail offsetting rail contract transitions.

• CapEx guidance: ~£125m in FY25 (mainly bus electrification), ~£100m in FY26 as fleet becomes well-capitalized.

• Marginal adjusted net debt expected after capex and buybacks; commitment to progressive dividends and further £50m buyback.