Mobico Group (MCG) H2 2024 earnings summary

Executive summary

• Revenue grew 8.3% year-over-year to GBP 3.4 billion, driven by record ALSA performance and WeDriveU growth.

• Adjusted operating profit increased 11.3% to GBP 187.7 million, achieving full-year guidance.

• Statutory operating loss resulted from significant non-cash impairments, mainly in North America School Bus and German rail.

• Sale of North America School Bus agreed for up to $608 million, with net proceeds of GBP 300 million, to accelerate debt reduction.

• Leadership changes include new Executive Chair, Group COO, and CEO UK & Germany.

Financial highlights

• Revenue reached GBP 3.41 billion, up from GBP 3.15 billion year-over-year.

• Adjusted operating profit rose to GBP 187.7 million from GBP 168.6 million; adjusted basic EPS at GBP 4.8.

• Free cash flow before growth CapEx and M&A up GBP 46.6 million to GBP 210 million.

• Covenant gearing improved to 2.8x from 3.0x; net debt stable at GBP 991.3 million.

• Statutory operating loss of GBP 519.9 million, mainly due to School Bus goodwill impairment and German rail contract provision.

Outlook and guidance

• Continued focus on net debt reduction and sustainable profitable growth, with plans to generate higher cash in 2025.

• U.K. turnaround and German rail contract negotiations remain key priorities.

• Ambition to exceed GBP 50 million cash improvement target in 2025.

• Asset-light growth opportunities prioritized, especially in ALSA and WeDriveU.