Mobico Group (LSE:MCG) delivered higher adjusted operating profit in 2025 as strong performance from its Alsa division helped offset weaker conditions in other parts of the business, with management saying its turnaround programme continues to gain momentum.
Adjusted operating profit rose 9% to £198 million on revenue of £2.76 billion, supported by another year of double-digit growth at Alsa, the group’s Spanish-based transport arm. Gains in the division compensated for softer trading in UK Coach operations and operational challenges within North American shuttle service WeDriveU.
Statutory operating profit declined to £21.9 million, primarily reflecting one-off non-cash charges. Free cash flow also fell during the year due to the contribution of the NASB business prior to its disposal. However, the group strengthened its balance sheet, with covenant gearing improving to 2.7x following £273 million of disposal proceeds. Mobico also retained significant liquidity, including access to an undrawn £600 million credit facility.
Management said progress under its “Simplify, Strengthen, Succeed” turnaround plan remains on track. The company highlighted an agreement in principle with German rail transport authorities aimed at establishing a more sustainable long-term rail operation, alongside continued integration of the UK Coach business into Alsa to streamline overheads and improve competitiveness.
Mobico is targeting £100 million in annualised cost savings by the end of 2026 through efficiency measures, tighter capital expenditure controls and ongoing monetisation of UK Bus assets. For 2026, the group expects adjusted operating profit to remain broadly stable within a range of £195 million to £210 million, signalling a strategic focus on margin improvement and debt reduction rather than rapid revenue expansion.
The company’s outlook continues to be constrained by legacy financial pressures, including ongoing losses, margin challenges, elevated leverage and volatile free cash flow generation. Technical indicators provide only limited support, reflecting mixed market momentum and a longer-term downward trend in the share price. While management’s reaffirmed guidance and revenue growth offer some encouragement, valuation remains pressured by negative earnings and the absence of a dividend yield.
More about Mobico Group
Mobico Group is an international shared mobility operator providing bus, coach and rail services across the UK, North America, continental Europe, North Africa and the Middle East. Its portfolio includes the high-performing Alsa division, North American corporate shuttle operator WeDriveU, and a range of regulated public transport operations in the UK and Germany, positioning the company as a major provider of contracted and regulated transport services worldwide.
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