Half Year 2026 FirstGroup PLC Earnings Call Transcript
Key Points
- Group adjusted revenue increased by 30% to £834 million, driven by growth in First Bus due to the acquisition of First Bus London.
- Adjusted earnings per share for the half year increased by 16% to 9.9%, supported by the repurchase of approximately 22 million shares.
- The board proposed an interim dividend of 2.2p per share, up 29% from the previous year.
- Operational efficiencies in First Bus led to a 24% reduction in loss mileage to 1.3%, and the net promoter score increased to +15.
- FirstGroup PLC is at the forefront of bus fleet and infrastructure electrification, with 23% of its fleet now zero emission.
- Economic and policy headwinds, such as lower bus funding in England and above-inflation wage pressures, impacted the business.
- Regional bus volumes were down by 4%, with a 7% decline in commercial volumes due to lower consumer confidence.
- Inflationary pressures remain, with cost increases due to inflation of approximately 3%, mainly in wages.
- Industrial action at Hull Trains and mobilization costs for the new Sterling to London Euston service impacted open access rail profits.
- The transition to a £3 fare cap in England resulted in lower funding levels, down £17 million from the previous year.
Good morning and welcome to First Group's 2026 half year results presentation.
In a moment I will hand over to Ryan to take you through the financial performance for the first half of the year. I will then provide an update on business performance in bus and rail before we take your questions at the end. Moving on to slide 3.
I'm pleased to report another strong half for the group, despite several economic and policy headwinds. Strong execution has ensured that we've been able to fully counter the negative impacts of lower bus funding in England, above inflation, wage pressures, and higher levels of employer National Insurance contributions.
Group adjusted revenue, which does not include the national rail contract revenues, where we take substantially no revenue risk, has increased by 30% to 834 million pounds. This was largely driven by growth in First Bus due to the acquisition of First Bus London, which completed in February.
Adjusted earnings per share for the half year has increased
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