FirstGroup PLC Financial Update

FirstGroup PLC, an international passenger group with operations in bus and rail across the United Kingdom and North America, has recently made several strategic moves that have impacted its financial standing and market perception. The company, listed on the London Stock Exchange, saw its share price close at 226.2 GBP on June 11, 2025, marking a 52-week high.

Profitability and Financial Performance

FirstGroup reported a turnaround to profitability in fiscal 2025, a significant shift from the previous year’s loss. This improvement was primarily due to the absence of one-off pension settlement charges, which had previously impacted the company’s financial results. The adjusted earnings per share increased by 16% to 19.7p, and the company announced a final dividend of 4.8p per share, resulting in a total dividend for the year up 18% to 6.5p per share.

Share Buyback Program

In a move to return value to shareholders, FirstGroup initiated a £50 million share buyback program. This decision was well-received by the market, contributing to a rally in the company’s shares, which gained around 8% following the announcement. The buyback program aligns with the company’s positive outlook for the current year, as stated in their financial results.

Market Reaction and Stock Performance

The company’s shares have been performing strongly, with the FTSE 250 index closing up 0.5% on the day of the results announcement. Analysts and investors have responded positively to the financial results and strategic initiatives, with shares nearing a 13-year high.

Corporate Governance Changes

Amidst these financial developments, FirstGroup has also undergone some changes in its corporate governance structure. The company has ended its long-running employee director policy, a move that marks a shift in its approach to employee representation on the board. Additionally, Ant Green, the Employee Director, will not stand for re-election at the upcoming AGM.

Open Access Growth and Rail Nationalisation

FirstGroup has also navigated challenges related to rail nationalisation by focusing on open access growth. This strategic pivot has allowed the company to maintain its competitive edge in the rail sector despite broader industry changes.

Conclusion

FirstGroup’s recent financial performance and strategic decisions reflect a company in a strong position to capitalize on its market opportunities. The successful turnaround to profitability, coupled with shareholder-friendly initiatives like the share buyback program, positions FirstGroup well for continued growth and stability in the competitive ground transportation industry.