UK's FirstGroup beats FY revenue estimates
UK's FirstGroup beats FY revenue estimates
Overview
UK public transport operator's FY revenue rose 25%, beating analyst expectations
Adjusted operating profit marginally lower yr/yr
Company announced new £100 mln share buyback after returning £89 mln to shareholders
Outlook
FirstGroup expects to maintain adjusted EPS in FY 2027 from a higher quality earnings base
First Bus revenue expected to grow to just over £1.5 bln in FY 2027
Company anticipates free cash generation of c.£400 mln over the next three years
Result Drivers
BUSINESS DIVERSIFICATION - Revenue growth driven by First Bus London integration, contract wins in Business and Coach, and recent acquisitions, according to the company
COST MANAGEMENT - Group delivered c.£9 mln in cost savings from restructuring and managed inflationary pressures with multi-year wage settlements and hedging, per company
RAIL OPEN ACCESS GROWTH - Increased open access passenger journeys and capacity, though margins were impacted by competition and lower consumer confidence, company said
Company press release: ID:nRSR7397Ia
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Beat | GBP 4.75 bln | GBP 4.43 bln (3 Analysts) |
FY Adjusted Operating Profit | Beat | GBP 221.50 mln | GBP 213.65 mln (3 Analysts) |
FY Adjusted Pretax Profit | Beat | GBP 158.80 mln | GBP 155.24 mln (2 Analysts) |
FY Adjusted Operating Margin |
| 12.90% |
|
FY Dividend |
| GBP 0.07 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy"
Wall Street's median 12-month price target for FirstGroup PLC is GBp250.00, about 43.3% above its June 17 closing price of GBp174.50
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)