Mobico Group (LSE:MCG) reported audited results for the extended 15-month period ended 31 March 2026, with adjusted revenue increasing 5.9% year over year to £3.42 billion and adjusted operating profit rising to £231 million. The improvement was driven by strong trading at Alsa and the return of full rail services in Germany, although tougher competition in the UK coach market continued to pressure passenger volumes and ticket yields.
Statutory operating profit declined to £12 million after the business recognised a range of one-off non-cash items, including asset impairments and higher provisions. The group also reported a statutory loss before tax of £89.2 million. Despite these charges, Mobico maintained a stable covenant leverage ratio of 2.9x and ended the period with liquidity of £0.8 billion, supported by £242 million in net cash and an undrawn £600 million revolving credit facility.
Management said it had made further progress in simplifying the business, completing the disposal of NASB and National Express Transport Solutions while securing revised agreements with German public transport authorities that are expected to improve future EBITDA. The company is also continuing to monetise selected UK Bus assets ahead of franchising changes. During the reporting period, Mobico won 28 new contracts with annualised revenue of £109 million and a combined contract value of £682 million, highlighting continued momentum in new business.
Reflecting improved trading, Mobico increased its adjusted operating profit guidance for calendar year 2026 to between £215 million and £230 million. The company also reaffirmed its target of delivering £100 million in annualised operating cost savings while reducing capital expenditure to below £120 million by 2027. Although debt reduction remains a key priority, legacy liabilities continue to slow deleveraging efforts, prompting the group to work with advisers on strategic and financial initiatives aimed at accelerating balance sheet improvement. Further updates are expected later this year.
Mobico’s outlook remains influenced by ongoing financial challenges, including statutory losses, negative equity and inconsistent free cash flow generation. However, these concerns are partly balanced by improving operational performance, a more constructive earnings outlook driven by cost-saving initiatives and debt reduction plans, and gradually strengthening technical indicators. Valuation remains constrained while earnings remain negative.
About Mobico Group
Mobico Group is an international public transport operator providing bus, coach and rail services across the UK, the United States, continental Europe, North Africa and the Middle East. The company operates a combination of contracted and commercial passenger transport services through businesses including Alsa, UK Bus and Coach, German rail operations and a range of mobility services in the U.S.
Its portfolio includes urban and regional bus networks, long-distance coach services and rail operations, serving both public-sector transport authorities and commercial passengers. Mobico focuses on delivering reliable, efficient and sustainable transport solutions while competing across regulated and deregulated markets through operational expertise, broad network coverage and long-term transport partnerships.
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