Mobico Group (MCG) H2 2025 earnings summary

Executive summary

• Revenue rose 6.2% year-over-year to EUR/£2.8 billion, with adjusted operating profit up 9.3% to nearly EUR/£198 million, driven by ALSA's strong performance, operational improvements, and new contract wins exceeding EUR 1 billion.

• All divisions reported positive operating profit in H2 2025, marking a significant turnaround, with cost savings, contract wins, and a return to full service in German rail.

• The business exited loss-making contracts, notably in WeDriveU and NXTS, and completed the integration of U.K. Coach into ALSA.

• Strategic focus remains on simplifying operations, reducing overhead, capex discipline, and leveraging ALSA's operational excellence for groupwide synergies.

• Turnaround strategy 'Simplify, Strengthen, Succeed' is delivering momentum, with ongoing monetisation of UK Bus assets and targeted deleveraging.

Financial highlights

• Adjusted operating profit reached EUR/£198 million for 2025, with a record H2 profit of EUR/£138 million.

• Free cash flow was EUR 70.3 million/£75.6 million, lower than last year due to school bus business outflows before its sale.

• ALSA revenue grew nearly 13% to EUR 1.5 billion/€1,737.9m, with operating profit up 14% to EUR 112 million/€247.6m.

• WeDriveU revenue increased by 4.7% to EUR 432 million/$570.2m, but full-year profit was below 2024 due to contract challenges and exits.

• U.K. revenue declined 2.4–4.6% to EUR 587 million/£586.9m, with an operating loss of EUR 4.6 million and realignment for efficiency.

• Germany's revenue fell 1.6–2.5% to EUR 253–294.8 million, but adjusted operating profit improved to EUR 15.6 million, supported by contract provision utilization.

Outlook and guidance

• Targeting EUR/£75 million in cost savings for 2026, with a run rate of EUR/£100 million by year-end.

• Adjusted operating profit guidance for 2026 is EUR/£195–210 million, excluding the positive impact of revised German rail contracts.

• ALSA expected to maintain strong performance, with continued growth in Spain and new contracts in Saudi Arabia and Ibiza.

• U.K. Bus expected to reach breakeven in 2026, subject to funding discussions and further monetisation.

• Positive net cash position anticipated for 2026, with capex targeted at EUR/£120 million.