Mobico Group (LON:MCG) executives said the company made “significant progress” in 2025 as it worked through operational issues, exited loss-making activities and advanced its “Simplify for Success” program, while also warning that several large adjusting items and complex reporting changes will continue to shape near-term results.
2025 performance and key developments
Executive Chair Phil White said Mobico delivered improved stability and momentum in 2025, pointing to a return to profitability across all divisions in the second half of the year. Group revenue rose 6% to £2.8 billion and adjusted operating profit increased 9% to nearly £200 million, supported by what management described as a record second-half performance of £138 million after a weaker first half.
A major focus of the presentation was Germany. White said Mobico reached an agreement with five public transport authorities (PTAs) in North Rhine-Westphalia to restructure all of its rail contracts, which he said “de-risks the business” and supports long-term sustainability. Management said it would provide more detail once the agreement becomes legally binding.
White also apologized that the results being presented were unaudited, stating the company had been left without an auditor late last year but has since appointed KPMG.
Financial review: cash flow, debt, and adjusting items
Chief Financial Officer Brian Egan said 2024 numbers were restated for a £0.8 million EBIT impact in Germany and to reflect discontinued operations, including the disposed school bus business and ex-NXTS activities, to allow like-for-like comparisons.
Egan said free cash flow was £70.3 million, lower than the prior year primarily due to cash outflows tied to the school bus business ahead of its sale in July. Excluding school bus, group free cash flow was £76 million. Covenant gearing improved to 2.7 times, supported by disposal proceeds, and Egan said the company ended 2025 with revolving credit facilities undrawn and roughly £900 million available between cash and drawn committed facilities.
On statutory performance, Egan said operating profit from continuing operations was £21.9 million, and he outlined several non-operating charges that bridged statutory and adjusted operating profit. These included:
- German rail owner’s contract provision: No new charges in the period, but £56 million of the provision was utilized, leaving £133 million remaining. The provision will be reviewed in detail as part of the company’s upcoming 15-month audited results and is expected to depend on finalizing legally binding PTA agreements.
- WeDriveU (WMATA) onerous contract provision: A £52 million provision was recognized related to the WMATA contract. Egan said the company is seeking legal redress to recover ongoing losses and expects the litigation to be successful, but noted it could take 18–24 months and the potential settlement benefit is not included in the provision.
- NASB (school bus) retained legal liabilities: A £38.5 million charge was recognized for open insurance claims; year-end cash impact from settled claims was just under £19 million.
- Morocco: A £27 million charge reflected price concessions in Casablanca used to settle outstanding debts and a non-cash impairment after the transfer of Marrakech and Tangier contracts in December. On an adjusted basis, Morocco contributed €8 million of operating profit versus just under €13 million in 2024.
- Restructuring and streamlining costs: £35 million of restructuring and related transaction fees were recorded, with a year-end cash impact of £29.8 million for restructuring.
Egan also said the company paid its 2025 hybrid bond coupon of £21 million, which he described as the last payment until a £40 million coupon due in February 2027.
Division highlights: ALSA growth, WeDriveU recovery, UK and Germany improvements
ALSA was described as the group’s growth engine. Egan said ALSA revenue grew 12.8% to £1.5 billion, while operating profit rose 14% to €112 million, supported by what management called strong underlying demand in Spain’s regional and long-distance markets. Chief Operating Officer Paco Iglesias said ALSA’s record year also included milestones in passenger volume (640 million passengers), customer satisfaction, safety targets and digital sales, while noting that long-haul represents about 17% of ALSA’s business.
WeDriveU revenue increased 4.7% to £432 million on new contract wins, but Egan said full-year profit was below 2024 due to the WMATA contract and the Carter contract, which management said has now been exited. Egan highlighted improved second-half performance, with WeDriveU delivering a £17.6 million profit in H2, and said the recovery is expected to continue in 2026. White added the Carter contract lost more than $303 million in 2025 and said the group provisioned £52 million related to WMATA, while pursuing legal redress.
In the UK, revenue fell 4.6% to £587 million amid “intense competition” in coach. Egan said UK Coach revenue declined 6.2% while passenger numbers fell 3.8%, and UK Bus revenue increased 2.4% due to fare increases implemented in late June. The UK segment reported a £4.6 million operating loss, which Egan attributed to competitive pressures in coach and higher employer National Insurance costs. Management said integration of UK Coach into ALSA is largely complete, with benefits beginning to appear in early 2026.
Germany revenue decreased 1.6% to £253 million, while adjusted operating profit improved to £15.6 million. Egan said in-year losses on the RRX contract were £56 million in cash outflow terms, underlining management’s focus on finalizing PTA contract changes. Iglesias said the business has reached required driver levels and reduced reliance on higher-cost agency labor.
Cost savings, guidance, and reporting calendar
White and Egan emphasized cost and cash as key priorities. The company said it will deliver £75 million of cost savings in 2026, with an annual run rate of £100 million by the end of 2026. In Q&A, management said the planned savings are spread across the group, including roughly £15 million from head office and about £25 million focused on UK Coach, with additional reductions across Germany, ALSA and WeDriveU.
Egan issued 2026 adjusted operating profit guidance of £195 million to £210 million, stressing that this range does not include the potential positive impact of revised German rail contract changes. Management said it expects to update guidance once agreements are legally binding, which it expects by the end of June, and noted that revised contracts are expected to be backdated and effective from Jan. 1, 2026.
Mobico also outlined a revised reporting schedule following KPMG’s appointment. The current financial year will be a 15-month period ending March 31, 2026, with audited results expected in late June or early July. The company then expects to report interim results for the six months ending Sept. 30 in late November, followed by a shortened nine-month period ending Dec. 31, 2026, with results expected in March 2027.
About Mobico Group (LON:MCG)
Mobico Group is a leading international transport operator, diversified internationally and by business area; with operations in North America, continental Europe, the UK and North Africa.
We provide safe, efficient, clean and reliable shared mobility solutions to cities, businesses, education, healthcare and customers.
We are internationally diversified with a balanced portfolio of high quality contracts and market-leading customer brands.
We help millions of people around the world every day, getting them safely and reliably to work, school, to family and friends.
We are leveraging our network economies to shape the future of multi-modal transport.
