Mobico Group (LSE:MCG), the international public transport operator, said group revenue rose 5% year-on-year in the second quarter of 2026.
The company confirmed guidance for the full year remains unchanged.
Alsa, the group's Spanish coach and bus business, drove much of the growth, with revenue up 8% overall and 13.7% excluding UK Coach.
Long Haul revenue within Alsa rose 7%, helped by a 4.2% increase in yield, while Regional revenue climbed 10.5% on a 14.3% jump in passenger volumes.
German Rail revenue jumped 19.3% following a return to full operations and the signing of revised rail contracts.
UK Coach revenue fell 16.7% on reduced passenger numbers and yields, compounded by the deliberate cutting of unprofitable routes.
WeDriveU revenue dropped 11.8%, largely reflecting the planned exit from loss-making contracts, though Mobico said corrective action has since stabilised operations.
UK Bus revenue slipped 1.8% on weaker commercial patronage.
Mobico announced on 18 August an agreement in principle to sell UK Bus's net assets and operations to the West Midlands Combined Authority, with completion expected in November.
The company said the disposal "substantially de-risks the Group" from franchising uncertainty in the region, as it refocuses on margin expansion, cash generation and asset-light growth.
News Intelligence what this means for the company
Mobico held full-year guidance despite Q2 revenue growth of 5%, driven by Alsa's 8% rise and German Rail's 19.3% jump, but offset by UK Coach falling 16.7% and WeDriveU down 11.8%. The company is executing a strategic pivot: it has agreed to sell UK Bus to the West Midlands Combined Authority (completion expected November), which management frames as de-risking the group from regional franchising uncertainty while refocusing on margin expansion and cash generation.
- The UK Bus disposal removes a drag on group profitability and simplifies the portfolio, but the sale's financial impact on cash generation and net proceeds remains undisclosed in this update—material for assessing whether the refocus on 'cash generation' will translate to improved returns.
Guidance hold despite mixed divisional performance suggests management confidence in the full-year range, but the strategic exit from UK Bus and ongoing WeDriveU restructuring indicate the group is still in portfolio rationalization mode rather than organic growth acceleration. Investors should monitor whether the disposal proceeds and margin expansion in retained operations offset the revenue headwinds in the UK.
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