Mobico Group (LSE:MCG) said the Washington Metropolitan Area Transit Authority issued a notice on 12 May terminating paratransit services operated by its US subsidiary Diamond Transportation Services with immediate effect.
The contract was awarded in 2024 to run from 1 July 2024 for a five-year period, equivalent to total contract revenue of approximately $370m, with five one-year renewal options exercisable at WMATA’s discretion. Mobico said Diamond filed a civil lawsuit for breach of contract against WMATA on 28 January, as previously disclosed in the group’s unaudited 2025 results.
Mobico said the contract turned unprofitable during 2025 in part because of lower-than-projected volumes and the loss of contracted exclusivity, and an onerous contract provision was included in its unaudited 2025 results.
