FirstGroup PLC – 2026‑06‑18
FirstGroup PLC announced its full‑year 2026 results on Thursday, 18 June. The London‑listed transport group, whose shares trade on the LSE under the ticker FIRST, reported a 25 % increase in revenue for the year ending 30 April. The rise was largely driven by higher passenger volumes on its bus and rail franchises in the United Kingdom and North America, as well as a modest expansion of its fleet‑maintenance and transit‑management services.
Financial highlights
| Metric | 2026‑06‑16 |
|---|---|
| Net revenue | 25 % growth vs. FY 2025 |
| Profit after tax | Beat consensus estimates |
| Share‑buyback | £100 million announced |
| Cash‑flow outlook | Positive, improving operating cash generation |
| Market cap | 1.27 bn GBX |
| P/E ratio | 8.04 |
| Close price (2026‑06‑16) | 174.5 GBX |
The company’s earnings per share rose to £0.81, surpassing the consensus £0.73 forecast by analysts from the Bank of England and other UK brokerage houses. Despite the revenue up‑turn, FirstGroup noted that margin pressure remained a concern, largely due to rising fuel costs, wage inflation, and regulatory compliance expenses associated with its bus and rail operations.
Share‑buyback programme
FirstGroup has announced a new £100 million share‑buyback scheme, extending its commitment to returning capital to shareholders. The buyback is expected to be funded primarily from the company’s robust cash‑flow generation. In a separate statement, the board highlighted that the cash‑flow outlook for FY 2027 is improving, a development that should support future dividend payments and share repurchase activity.
Market reaction
The stock opened at 179.3 GBX on the London market, reflecting a +4.7 % gain from the previous close. Analysts from ODDO BHF and other investment banks lifted their price targets for FirstGroup, citing the earnings beat and the buyback programme as catalysts. The share price’s momentum was further buoyed by a broader market context that saw European stocks retreating following a hawkish stance from the U.S. Federal Reserve, yet remaining resilient in the face of rising inflation concerns.
Broader economic backdrop
On Thursday, the Bank of England was scheduled to announce its policy rate, which was expected to hold at 3.75 %. In the meantime, UK unemployment fell to 4.9 % in the quarter to April, supporting consumer confidence and transportation demand. Meanwhile, global markets were dampened by a rise in oil prices following a memorandum of understanding signed between the United States and Iran, although this did not materially affect FirstGroup’s core operating markets.
Outlook
FirstGroup’s management expressed confidence that the company will continue to grow its revenue base while tightening operational efficiencies to mitigate margin pressures. The newly announced share‑buyback, coupled with a positive cash‑flow trajectory, positions the company well for continued shareholder value creation over the coming year.
The information presented here is derived exclusively from the supplied input data and reflects the company’s performance as of 18 June 2026.
