FirstGroup (LSE:FGP) posted adjusted revenue of £1,716m for the 52 weeks to 28 March, up 25% year on year, and launched a further £100m buyback programme expected to complete within 12 months.
Adjusted earnings per share rose to 20.3p from 19.4p, supported by strong cash conversion that produced free cash flow of £73.8m before acquisitions and returns, with adjusted net debt held at £138m.
Group adjusted operating profit came in at £219.4m, marginally lower than the prior year, as growth in First Bus was offset by higher open access costs in First Rail, the transfer of South Western Railway to the Department for Transport Operator in May 2025, and a £7m lower IFRS 16 adjustment in the DfT-managed train operating companies.
First Bus grew adjusted operating profit 7% to £102.8m despite a £26m reduction in fare funding, higher employer National Insurance costs, and a 3% fall in regional bus passenger volumes.
First Rail's open access adjusted operating profit fell to £25.6m from £34.1m, dragged by £6.3m of Stirling mobilisation costs and increased infrastructure charges on the Lumo service.
For the year ahead, FirstGroup expects to maintain adjusted EPS in FY 2027, with First Rail open access revenues guided to £130m to £150m and the newly awarded London Overground contract, which began mobilisation on 3 May, expected to contribute approximately £300m in annual revenue over its eight-year term.
The group anticipates free cash generation of approximately £400m over the next three years.
