FirstGroup plc Completes Share‑Buyback Transaction Amid Stable Market Conditions

FirstGroup plc, the prominent international passenger operator listed on the London Stock Exchange, has announced the execution of a share‑buyback transaction on 17 September 2025. The company purchased 125,940 ordinary shares at an average price of £218.70 per share through Panmure Liberum Limited, as part of the buy‑back programme that was unveiled on 10 June 2025. The transaction brings the total number of shares held in treasury to 186,660,951, while the outstanding share count remains at 564,034,064.

Strategic Rationale

The decision to repurchase shares aligns with FirstGroup’s long‑term value‑creation strategy. By reducing the equity base, the buy‑back enhances earnings per share and signals confidence in the company’s cash‑flow generation capabilities. The timing, just days after the release of robust UK jobs data and in a market environment where the FTSE 100 is trading near a 52‑week high of £240.40, reflects FirstGroup’s belief that its shares are undervalued relative to intrinsic worth.

Impact on Capital Structure

Post‑transaction, the company’s market‑cap stands at approximately £1.28 billion, with a price‑to‑earnings ratio of 11.34. The weighted average price paid for the repurchased shares (£218.70) is comfortably below the closing price on 16 September (£220.00), indicating a favourable execution relative to market levels. The Treasury shareholdings remain a strategic reserve, giving FirstGroup the flexibility to cancel or re‑issue shares as liquidity needs arise.

Insider Participation

On 15 September 2025, Executive Director and Chief Financial Officer Ryan Mangold disclosed the purchase of 70 ordinary shares through the company’s Share Incentive Plan. The transaction, valued at £2.1477 per share, underscores management’s alignment with shareholder interests and reinforces the company’s commitment to maintaining a disciplined capital allocation policy.

Market Context

London equities opened the trading day on 16 September with the FTSE 100 marginally down, reflecting investor caution ahead of the Bank of England’s upcoming policy decision. Analysts noted that while wage growth remains above the inflation target, the slight easing of payrolls suggests that monetary policy may remain accommodative into 2026. In this backdrop, FirstGroup’s share repurchase demonstrates resilience and a proactive stance toward capital optimisation.

Forward‑Looking Perspective

Looking ahead, FirstGroup’s core operations—bus and passenger rail franchises across the United Kingdom and North America—continue to benefit from steady demand in public transport and the growing emphasis on sustainable mobility solutions. The company’s diversified portfolio, encompassing transit management, school bus operations, and fleet maintenance, positions it well to capture incremental revenue from evolving regulatory frameworks and green‑transport initiatives.

With the share‑buyback completed and treasury holdings secured, FirstGroup is poised to deploy capital toward strategic initiatives that drive long‑term shareholder value. Management’s disciplined approach to equity repurchases, coupled with a robust operating foundation, suggests that FirstGroup will remain an attractive investment proposition as the industrial sector navigates post‑pandemic recovery and infrastructural investment cycles.