Mobico Group (MCG) H1 2025 earnings summary

Executive summary

• Revenue increased 7.0% year-over-year to £1.32bn, driven by ALSA and WeDriveU, but profitability declined due to WeDriveU contract issues, FX headwinds, and a competitive UK market.

• Statutory loss for the period was £254.7m, mainly due to a £238.0m non-cash impairment on the North America School Bus business, now sold.

• New leadership team in place, with a focus on openness, honesty, and delivering on promises.

• Strategic priorities include simplifying the business, strengthening the balance sheet, and delivering on commitments to restore stakeholder trust.

• Management remains confident in achieving full-year adjusted operating profit guidance of £180m–£195m.

Financial highlights

• Group revenue up 7% year-over-year to £1.32bn, with ALSA and WeDriveU as key drivers.

• Adjusted operating profit fell 12.7% to £59.9m, mainly due to WeDriveU operational challenges and FX headwinds.

• Statutory operating profit was £35.1m; group loss for the period was £254.7m, impacted by a £238.0m impairment.

• Free cash flow was £57.8m, down from £96.3m year-over-year, impacted by working capital timing.

• Net debt at £1,292.5m; covenant gearing at 3.0x, expected to improve to ~2.5x by year-end post School Bus sale.

Outlook and guidance

• Full-year adjusted operating profit guidance maintained at £180m–£195m.

• H2 expected to deliver two-thirds of annual profit, with July, August, and December as key months.

• Cost control and margin improvement in WeDriveU are critical to achieving upper-end guidance.

• Covenant gearing expected to fall to ~2.5x by year-end, supported by School Bus sale proceeds.

• Working capital outflow in H1 expected to reverse in H2.