Mobico Group (MCG) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results with revenue up 7.6% at constant currency to £1.65bn, driven by ALSA, North America, and UK, partially offset by Germany.

• Adjusted EBIT guidance for FY 2024 remains £185m–£205m, with ongoing focus on cash conservation, debt reduction, and profitability improvement.

• Record H1 results in ALSA, improved North America performance, and significant contract wins including WeDriveU and WMATA.

• Ongoing recovery in UK and Germany, with turnaround actions and cost restructuring underway.

• No interim dividend declared as focus remains on deleveraging.

Financial highlights

• Group operating profit for H1 2024 reached £71.2m, up 23.8% year-over-year.

• Free cash flow improved to £90.5m from £79.7m a year ago.

• Return on capital employed increased to 7.8% from 6.0% in H1 2023.

• Basic EPS was 0.3p, down from 1.0p in H1 2023; statutory loss after tax narrowed to £4.1m.

• No interim dividend paid.

Outlook and guidance

• FY 2024 Adjusted EBIT guidance unchanged at £185m–£205m.

• Covenant gearing targeted below 3x by year-end 2024, with long-term target of 1.5x–2.0x by 2027.

• Organic debt reduction initiatives and North America School Bus sale expected to further deleverage.

• Cost saving programmes on track for £40m savings in FY24, annualising to £50m in FY25.

• Long-term profit and gearing targets for 2026–2027 remain unchanged.