Strong First Bus results helped FirstGroup return to profit for the financial year ending 29 March, according to its annual report published today.
First Bus’s operating profit was up £12.4 million to £96 million for 2024/25.
The Group reported a total pre-tax profit of £169.6 million after making a loss of more than £24 million in 2023/24.
First Bus returned an 8.9% adjusted profit margin for the year, which it credits to “data-led operational and yield improvements, cost efficiencies, and improved driver availability”. This helped offset inflationary pressures and lower funding, it says.
Passenger volume was up by around 2%, although passenger revenue growth was up 7%.
Overall First Bus revenue increased 6.85% to £1,081.5 million.
Contributions to revenue came from several acquisitions during the financial year, including that of RATP London, now known as First Bus London.
With the £90 million deal completed in March, the operator now has a 12% share of the London bus market.
Regarding the entry into the London market, the report adds: “As the route contracts evolve over the next five years, we anticipate annual revenues of £300-350 million, with operating margins in line with historical London levels of 6-7%.”
First Bus London brought in £23.2 million in revenue in March.
Acquisitions of Anderson Travel, Lakeside Coaches and Matthews Coach Hire in Ireland for a total of £31 million bolstered its share of the coach market. Added to fruits from its new five-year contract with FlixBus, its revenues from these coach acquisitions are predicted by the Group to total £37.2 million per year.
More generally, First Bus expects further adjusted operating profit progress in the 2025/26 financial year, driven by its bus operation in the capital, productivity, overhead and yield improvements.
FirstGroup Chief Executive Officer Graham Sutherland says: “I am pleased to report another positive set of results for our 2025 financial year.
“We have further strengthened our businesses and continued to deliver against our strategy, including growing and diversifying our earnings in both First Bus and First Rail.
“This leaves us well placed to at least maintain our adjusted earnings per share in FY 2026, from a stronger base, as we continue to successfully navigate a period of transition in bus and rail in the UK.
“Our focus remains on operational excellence and the disciplined deployment of capital to maintain our accelerated investment in decarbonisation and continuing to build a diverse, sustainable earnings base, while returning any excess capital to shareholders.”
FirstGroup’s share price closed at 218 pence – up 12.49% on the day.
