FirstGroup (FGP) H2 2026 earnings summary

Executive summary

• Achieved strong earnings momentum with adjusted revenue up 25% to £1,716m and adjusted EPS up 5% to 20.3p, driven by a U.K.-focused growth and diversification strategy.

• Strategic progress included portfolio growth, diversification, and a robust pipeline of UK growth opportunities.

• Announced a further £100m share buyback and increased full-year dividend by 11% to 7.2p.

• Adjusted EPS increase supported by a 22 million share buyback.

• Proposed full-year dividend of £0.072 per share, up 11% year-over-year.

Financial highlights

• Adjusted operating profit was £219.4m, broadly flat year-over-year, with First Bus profit up £7m and First Rail down £19m.

• Free cash flow was £73.8m, ending the year with £137.7m in adjusted net debt and leverage at 0.6x.

• Return on Invested Capital improved to 10.7%, up 80bps and above WACC.

• Dividend per share: 7.2p, up 10.8% year-over-year.

• Adjusted earnings totaled £112.6m, with robust cash generation.

Outlook and guidance

• FY 2027 expected to maintain adjusted EPS and progressive dividend from a higher quality earnings base.

• Bus operating profit anticipated to grow sequentially, with revenues above £1.5bn.

• Open access rail revenues expected to reach £130–£150m in FY 2027, with margins in the mid-teens by FY 2029.

• CapEx in First Bus to normalize at £80–£100m from FY 2028, after accelerated decarbonization investment.

• DfT TOCs and Rail Services expected to provide £90m cash inflow over three years as contracts transition.