FirstGroup beats forecasts with FY profits, announces £100m buyback

(Sharecast News) - FirstGroup's share price jumped on Thursday after the travel operator beat market forecasts with its full-year results despite "significant headwinds" and unveiled a new �100m share buyback.

The Aberdeen-based bus and rail group reported adjusted revenues of �1.72bn for the year to 28 March, up 25% and in line with analysts' estimates, as 33% growth in the larger bus division to �1.44bn outweighed a 16.4% drop in rail revenues to �272m.

Declines in the rail division, however, were expected as revenue growth in open access and rail services was offset by the planned transition of South Western Railway to public ownership in May 2025, as well as a normalised level of variable fees from DfT National Rail Contracts following higher revenue incentives in FY25. FirstGroup's Great Western Railway will also transfer to the DfT Operator in December 2026.

Adjusted operating profit dipped to �219m from �223m the year before, though still came in ahead of the �214m consensus forecast, while adjusted earnings per share of 20.3p beat the 19.9p market estimate.

Looking ahead, FirstGroup said it expects to maintain adjusted earnings per share at the same level in FY27.

The company declared a final dividend of 5.0p per share, taking the full-year payout to 7.2p, up from 6.5p in FY25, and announced a �100m share buyback programme for the next 12 months, following the �50m of shares repurchased in FY26.

"Our strong performance in FY 2026 against significant headwinds has reinforced our track record for delivery and shareholder return," said chief executive Graham Sutherland.

"Looking ahead, our focus on operational excellence and our diverse portfolio, robust asset base and cash generative businesses will enable continued growth and scope for further, material returns."

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