FirstGroup has reported a strong performance from its bus operations amid the continued impact of nationalisation on its rail division.
The Aberdeen-headquartered operator announced adjusted revenue of £1.72 billion for the year ended 28 March 2026, up 25% year-on-year, while adjusted pre-tax profit slipped marginally to £156.7 million.
Bus operations were a major contributor to the result. First Bus delivered adjusted operating profit of £102.8 million, an increase of 6.8%, helped by a full-year contribution from the former RATP London business, now operating as First Bus London. The acquisition marked FirstGroup’s return to the London bus market and strengthened its position in the capital.
Franchise revenue from First Bus London brought in £310 million. Regional bus revenue grew 3% with improvement in revenue per mile.
The group says it continues to see opportunities for growth in road transport, including London bus operations, commercial contracts and coach services. It has also expanded its partnership with FlixBus.
However, FirstGroup acknowledged that its regional bus business faced challenges during the year. Commercial passenger volumes dropped by 6%, affected partly by the increase in England’s fare cap from £2 to £3.
Business and coach revenue grew 28% to £230.1 million, boosted by acquisitions of J&B Travel and Tetley’s Coaches in Leeds and Hills Coaches in Wolverhampton.
Chief Executive Graham Sutherland says the group’s strategy had strengthened performance and diversified earnings streams.
“The transformation of our businesses over the last few years has strengthened performance and grown our portfolio in attractive markets,” he says.
“We are on course to maintain group adjusted earnings per share in the 2026/27 full year.”
