Mobico Group (MCG) H1 2025 earnings summary

Executive summary

• Revenue increased 7.0% year-over-year to £1.32b–£1.3235b, driven by ALSA and WeDriveU, despite operational challenges and a competitive UK market.

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

• Statutory loss for the period was £254.7m, impacted by a £238.0m non-cash impairment on the NA School Bus business.

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

• Strategic focus on fixing underperforming businesses, investing in strong segments, reducing debt, and improving EBITDA.

Financial highlights

• Group revenue: £1.32b (up 7.0% reported, 8.6% constant currency) vs. H1 2024.

• Adjusted EBITDA: £131.8m (down 6.3%); adjusted operating profit: £59.9m (down 12.7%).

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

• Net debt: £1,292.5m–£1.3b; covenant gearing 3.0x, expected to improve to ~2.5x by year-end post School Bus sale.

• Statutory operating profit: £35.1m; group loss for the period: £254.7m.

Outlook and guidance

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

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

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

• Focus on cost control, especially in WeDriveU, and leveraging ALSA best practices.