Full Year 2026 FirstGroup PLC Earnings Call Transcript
Key Points
- FirstGroup PLC (FGROF) reported a 25% increase in group-adjusted revenue, reaching over GBP1.7 billion, driven by growth in First Bus revenues and the acquisition of First Bus London.
- The company announced a further GBP100 million share buyback program, expected to be completed over the next 12 months.
- FirstGroup PLC (FGROF) has been recognized for its market-leading credentials in sustainability, particularly in bus fleet and infrastructure electrification.
- The company has a strong pipeline of inorganic UK growth opportunities, building on its execution capability from previous years.
- FirstGroup PLC (FGROF) anticipates delivering around GBP400 million in free cash generation over the next three years, supported by earnings growth in bus and open access rail.
- The group adjusted operating profit was broadly flat year on year, despite a 25% increase in adjusted revenue, due to inflationary cost increases and other financial impacts.
- FirstGroup PLC (FGROF) faced a GBP16 million impact from national insurance changes and GBP6 million in business development costs for open access mobilization.
- The rail adjusted operating profits decreased by GBP18.9 million, primarily due to SWR being nationalized and lower IFRS 16 adjustments.
- The company experienced a 6% decline in commercial bus volumes, attributed to fare cap changes and lower consumer confidence.
- Open access rail faced increased competition from LNER, impacting profitability despite maintaining seat mile utilization.
Good morning, everyone, and welcome to FirstGroup's 2026 full year results presentation.
In a moment I will hand over to Ryan to take you through the financial performance for the year. I will then provide an update on bus and rail before we take your questions at the end.
Moving on now to slide 3. I'm pleased to report another strong year for the group. The successful execution of our UK-focused growth and diversification strategy has driven further earnings momentum and material shareholder returns, reinforcing our track record for delivering on our commitments.
Group-adjusted revenue, which does not include the national rail contracts where we take substantially no revenue risk, has grown by 25% to over GBP1.7 billion. This was largely driven by growth in First Bus revenues, aided by the acquisition of First Bus London, which completed in February 2025.
Group adjusted earnings per share for the year has increased by 5% to 20.3p, with earnings per share growth supported by the
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