Continued revenue growth - Full year adjusted operating profit guidance unchanged

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Phil White, Mobico Group Executive Chairman, said:

“Mobico has delivered a solid performance in the first half of 2025, with revenue growth supported by continuing positive passenger demand, further contract win momentum and another record performance at ALSA. Although our operating profit performance in the first half was mainly impacted by the under-performance of two contracts in WeDriveU, due to operational issues and a competitive trading environment in the UK, we remain confident of achieving our full year adjusted operating profit guidance of between £180m and £195m. In July we also successfully completed the sale of our North America School Bus business, which strengthens our liquidity and is an important first step in our continued focus on deleveraging. Our new management team has been focused on closely evaluating each of our business divisions, and we see significant opportunities to simplify and strengthen the Group and are taking decisive action to sharpen our operational and financial performance, including additional cost reduction plans and further leveraging ALSA’s best practice across the business.”

H1 2025 highlights

• Group revenue¹ growth of 7.0%
  • Double digit growth to record revenue in both ALSA and WeDriveU, with continued contract win momentum and further improvement in ALSA’s customer satisfaction index
• Adjusted Operating Profit¹ of £59.9m (H1 24 of £68.6m, both excluding NA School Bus) 
  • Temporary operational challenges in two WeDriveU contracts impacted HY performance
  • Statutory Loss for the period including discontinued operations of £(254.7m), mainly due to £(238.0m) non-cash impairment on classification of NA School Bus as Held for Sale (as noted in prior announcements)
• Covenant gearing of 3.0x, prior to NA School Bus proceeds – expecting c.2.5x by year-end
  • Free Cash Flow of £57.8m (£96.3m in H1 24) with first half impacted by working capital timings
  • Ample liquidity with no significant maturities until May 2027, with NA School Bus proceeds covering these
• Sale of North America School Bus for enterprise value of up to $608m (c.£457m) completed post the half year 
  • Net upfront proceeds of $364m (£273m)²
  • First step in continued focus on deleveraging also enabling reallocation of cash flows from capital-intensive NA School Bus business
  • Non-cash impairment charge to be partially offset by a c. £100m non-cash release of foreign exchange reserves on disposal
• No change to FY 25 operating profit guidance:
  • Group continues to expect FY 25 Adjusted Operating Profit from continuing operations to be £180m - £195m excluding NA School Bus
• Strategic update – Initial actions:
  • Disciplined focus on cost reduction across the Group
  • UK Coach operations will be integrated with ALSA to create a pan-European coach powerhouse, exploiting our market leading positions in both Spain and UK driving operating synergies and further cost efficiencies
  • Discussions with German PTAs progressing constructively, working hard on resolution over the coming months
  • An update is planned, focused on ALSA’s track record and full potential as well as cost and efficiency actions, for before year end

^{1. The results for the six months ended 30 June 2024 have been restated for a correction to the German Rail onerous contract provision and to represent prior periods for discontinued operations.}

^{2. Net upfront proceeds for covenant deleveraging.  Translated illustratively at a GBP/USD rate of approximately 1.33 based on the rate as at close of business on 24 April 2025. Final GBP proceeds will be dependent on the unwinding of associated hedges, with the Group well hedged for GBP/USD movements.}

Financial Summary

 ^{1. The results for the six months ended 30 June 2024 have been restated for a correction to the German Rail onerous contract provision and to represent prior periods for discontinued operations}

^{2. To supplement IFRS reporting, we also present our results (including EBITDA) on an adjusted basis to show the performance of the business before adjusting items. These are detailed in note 1 to the Financial Statements and principally comprise intangible amortisation for acquired businesses, re-measurement of historic onerous contract provisions and impairments. In addition to performance measures directly observable in the Group financial statements (IFRS measures), alternative financial measures are presented that are used internally by management as key measures to assess performance.} 

^{3. Includes Profit/(Loss) from discontinued operations}

^{4. These are alternative performance measures and include discontinued operations}

Enquiries

Mobico Group PLC

Headland

A live webcast of the analyst meeting taking place today at 10:00am (BST) will be available on the investor page of the Group’s website: www.mobicogroup.com.