FirstGroup (LSE:FGP) has been named the preferred bidder to run the London Overground rail network beginning in May 2026. The agreement spans an initial eight-year period, with the possibility of a further two-year extension, and is estimated to be worth around £3 billion. Under the arrangement, First Rail London Limited will oversee day-to-day operations across trains and stations, while Transport for London will continue to bear the revenue risk. The collaboration is designed to boost service reliability, elevate passenger experience, and advance environmental initiatives consistent with TfL’s Vision Zero safety strategy and its wider emissions-reduction ambitions. Securing this contract represents a significant strategic step for FirstGroup as it broadens its transport portfolio and reinforces its standing within the UK mobility sector.
The company’s near-term prospects reflect a combination of strong financial results and supportive corporate developments. A favourable valuation and constructive earnings call add to the positive narrative, though technical indicators pointing to a bearish trend suggest investors may wish to approach the short term with care.
More about FirstGroup plc
FirstGroup plc is one of the UK’s largest private operators of public transport, employing roughly 29,000 people and delivering revenue of £5.1 billion in FY 2025. Its operations span two primary divisions: First Bus, among the country’s biggest bus networks, and First Rail, which runs a mix of long-distance, regional, commuter, and sleeper services. The group maintains a strong sustainability agenda, targeting a fully zero-emission bus fleet by 2035 and supporting the transition away from diesel-only trains by 2040.
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