FirstGroup PLC

F:FGR

Revenue Growth: Adjusted revenue rose 30% to £834 million, driven mainly by the acquisition of First Bus London and growth in bus and rail services.

EPS & Dividends: Adjusted earnings per share increased 16% to 9.9p, with an interim dividend up 29% to 2.2p per share, reflecting strong performance and share buybacks.

Cost Headwinds Managed: The company offset higher wage inflation, increased national insurance contributions, and lower bus funding in England through operational efficiencies and restructuring.

Bus Business: Operating profit grew 4% despite softer commercial volumes and funding cuts, helped by yield improvements, cost savings, and recent acquisitions.

Electrification Progress: 23% of the bus fleet is now zero-emission, unlocking efficiencies like a 20% fuel cost reduction per mile over three years.

Guidance & Outlook: Management expects modest adjusted EPS growth in FY2026 and to at least maintain this higher level in FY2027, supported by a strong balance sheet and UK-focused growth strategy.

Capital Allocation: No extension to the buyback program for now; focus remains on UK growth opportunities and returning surplus cash to shareholders.