Mobico Group Plc

Reported revenue was GBP 2.8 billion, up 6.2% year over year. Adjusted operating profit increased 9.3% to nearly GBP 200 million, with H2 adjusted operating profit at GBP 138 million versus GBP 60 million in H1. Free cash flow was GBP 77.3 million, covenant gearing improved to 2.7x, and year-end liquidity was nearly EUR 900 million in cash and undrawn committed facilities. Divisional highlights included Alsa revenue up just under 13% to GBP 1.5 billion and operating profit up 14% to GBP 212 million; WeDriveU revenue up just under 5% to GBP 432 million; UK revenue down 4.6% to GBP 587 million; and Germany revenue down 1.4% to GBP 253 million but adjusted operating profit up to GBP 15.6 million. For 2026, management guided to adjusted operating profit of GBP 195 million to GBP 210 million, GBP 75 million of cost savings, and an annual run-rate of GBP 100 million by end-2026; they also said U.K. Bus is expected to be at breakeven subject to funding discussions, and that the German contract changes are not yet included in guidance.

Phil White’s message was that the company has moved from fixing problems to rebuilding a simpler, more resilient group. He emphasized removing “corporate glue,” cutting complexity, exiting loss-making contracts, and focusing on cash, liquidity, and debt reduction. His tone was notably more confident than at H1, but still cautious and insistent on realism after a period he described as difficult.

Brian Egan focused on the hard numbers behind the turnaround and the remaining clean-up items. He cited GBP 35 million of restructuring and streamlining costs, GBP 52 million for the WMATA onerous contract provision, GBP 27 million for Morocco, and GBP 38.5 million for retained legal liabilities from the NASB sale; he also said GBP 56 million was utilized from the German rail provision, leaving GBP 133 million remaining. On capital allocation and liquidity, he said total CapEx is targeted at GBP 120 million for 2026, 94% of debt is fixed-rate, RCFs were undrawn at year-end, and the company has sufficient liquidity to meet 2027 maturities.

Analysts pressed on Morocco, exceptionals, depot sales, covenant leverage, Alsa concessions, and the German rail settlement. Management said Morocco’s charge reflected contract losses and asset impairment after losing Tangier and Marrakech, while the sold U.K. Bus depots generated just over GBP 4 million and the remaining business is still being monetized. On leverage, Brian said covenant gearing would be “in the 3s” excluding Germany and below 3 by year-end, though German accounting is still being finalized; on Alsa concessions, Paco said renewal is a multi-year process and not expected to affect 2026. They also said WMATA could see about GBP 8 million of provision release next year, while the German rail agreement is intended to stop cash leakage once signed.