Mobico Group (LON:MCG) Releases Quarterly Earnings Results

Key Points

• Mobico raised its 2026 operating profit guidance to £215 million–£230 million, citing a strong first quarter, improved German Rail contracts, Alsa growth and lower central costs.
• Alsa reported record results, with revenue increasing more than 10%, while Mobico targets at least £100 million in annual run-rate savings and plans to reduce capital expenditure from 2027.
• Leverage remains the key concern: adjusted net debt is about £1.1 billion, and the company is reviewing balance-sheet options, including a potential equity issuance, amid ongoing German liabilities, pension funding and legacy claims.

Mobico Group (LON:MCG - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported GBX (22.62) EPS for the quarter, Digital Look Earnings reports. Mobico Group had a positive return on equity of 160.47% and a negative net margin of 10.75%.

Here are the key takeaways from Mobico Group's conference call:

• 2026 operating profit guidance was raised to £215 million–£230 million, supported by a strong first quarter, improved German Rail contracts, continued Alsa growth and lower central costs.
• Alsa delivered record performance, with revenue up more than 10% and growth across Spanish transport, international and diversified operations. The company also cited new opportunities in Saudi Arabia and Spain.
• Mobico is targeting at least £100 million of full-year run-rate savings and plans to reduce annual capital expenditure to £120 million from 2027, while reporting improved first-quarter free cash flow and lower central costs.
• German Rail has been substantially de-risked: RME was converted to a gross contract and RRX’s term was shortened, with the combined operations expected to be at least cash neutral. However, approximately £130 million of German PTA advances remains subject to negotiations over the final amount and repayment timing.
• Leverage remains the board’s main concern, with adjusted net debt at about £1.1 billion and management acknowledging that debt is too high for the current group size. Advisors are evaluating all balance-sheet options, with nothing—including equity issuance—ruled out, while legacy school-bus claims, pension funding and German liabilities continue to consume cash.

Mobico Group Price Performance

Shares of LON MCG traded up GBX 2.44 during trading hours on Wednesday, hitting GBX 30.14. 34,886,023 shares of the stock were exchanged, compared to its average volume of 8,945,191. Mobico Group has a one year low of GBX 17.06 and a one year high of GBX 38.12. The company's 50 day moving average is GBX 23.62 and its 200 day moving average is GBX 23.07. The firm has a market capitalization of £183.96 million, a P/E ratio of -0.58 and a beta of 1.31.

Analyst Ratings Changes

MCG has been the subject of a number of recent research reports. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 70 price objective on shares of Mobico Group in a report on Wednesday. Berenberg Bank reaffirmed a "hold" rating and issued a GBX 35 price target on shares of Mobico Group in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of GBX 43.33.

About Mobico Group

Mobico Group is a leading international transport operator, diversified internationally and by business area; with operations in North America, continental Europe, the UK and North Africa. We provide safe, efficient, clean and reliable shared mobility solutions to cities, businesses, education, healthcare and customers. We are internationally diversified with a balanced portfolio of high quality contracts and market-leading customer brands. We help millions of people around the world every day, getting them safely and reliably to work, school, to family and friends. We are leveraging our network economies to shape the future of multi-modal transport.

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