Successful execution of proven UK-focused growth and diversification strategy has driven further earnings and portfolio growth, and material shareholder returns
Financial Highlights
- Group adjusted revenue up 25% to £1,716m, with strong underlying performance in both divisions
- Group adjusted operating profit of £219.4m, marginally lower:
- continued profit growth in First Bus, with First Rail lower due to additional costs in open access, the transition of SWR in May 2025 and a £7m lower IFRS 16 adjustment in the DfT TOCs
- excluding the DfT TOCs, Group adjusted operating profit grew 18%
- c.£9m of Group cost savings delivered in FY 2026 from business restructuring
- Adjusted EPS increased to 20.3p (FY 2025: 19.4p)
- Strong cash conversion and balance sheet maintained; adjusted year-end net debt of £138m
- free cash flow of £73.8m before acquisitions and returns
- c.£35m growth investment and accelerated capex of c.£190m principally on First Bus electrification
- £89m returned to shareholders via dividends and FY 2026 £50m buyback programme
- Final dividend of 5.0p per share proposed with FY total of 7.2p (FY 2025: 6.5p); policy tightening towards 2.5x cover ratio over time
- Further £100m buyback programme announced; expected to complete over next 12 months
- Free cash generation of c.£400m anticipated over the next three years