FirstGroup reports significant profit turnaround amid rising bus revenues

In the United Kingdom, FirstGroup reported a remarkable financial turnaround, achieving a pre-tax profit of £169.6 million for the fiscal year ending in March. This figure signifies an impressive recovery as it marks a significant shift from a loss of £24.4 million recorded in the previous year. The company's performance has been largely driven by its bus and rail operations, with notable increases in passenger numbers contributing to stronger revenues. Adjusted profits for the year also rose to £222.8 million compared to £204.3 million the prior year, reflecting a positive growth trajectory. The First Bus division, in particular, has shown substantial improvement, driven by the company's re-entry into the London market following its acquisition of RATP Dev Transit London for £90 million. This strategic move has not only enhanced First Bus’s market position but also resulted in a revenue growth of 6.8%, bringing total revenues to £1.08 billion despite a reduction of £17 million in funding. The passenger numbers saw a year-on-year increase of 7%, indicating growing public reliance on bus services in the cities served by FirstGroup. Meanwhile, the rail segment experienced a rise in passenger traffic as well, with open access lines, including Hull Trains and Lumo, reporting an increase to 2.9 million passengers. This represents growth from the previous count of 2.7 million, further reflecting consumer confidence in the services offered. With the backdrop of the UK government's plans to nationalise rail operations—except for open access franchises—FirstGroup has taken proactive steps by acquiring track access rights to introduce two new open access services. Graham Sutherland, Chief Executive of FirstGroup, expressed optimism regarding the company’s future, noting that they are well positioned to maintain adjusted earnings per share for the full year of 2026 from a strengthened base. Additionally, the company anticipates achieving around £15 million in cost savings. Following the announcement of their financial results, FirstGroup's shares saw an increase of 6.6% during early trading, indicating investor confidence in the company's future performance as it continues to adapt to changes in the UK transport sector.