Mobico Group (LON:MCG) Issues Quarterly Earnings Results

Mobico Group (LON:MCG) posted its earnings results on Wednesday. The company reported GBX (22.62) earnings per share 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 Trading Down 4.6%

Shares of MCG stock opened at GBX 28.25 on Thursday. The firm has a market capitalization of £172.43 million, a price-to-earnings ratio of -0.55 and a beta of 1.31. The business’s 50-day moving average price is GBX 23.80 and its 200-day moving average price is GBX 23.12. Mobico Group has a 12 month low of GBX 17.06 and a 12 month high of GBX 38.12.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on MCG shares. Jefferies Financial Group reaffirmed a “buy” rating and set a GBX 70 target price on shares of Mobico Group in a report on Wednesday. Berenberg Bank reiterated a “hold” rating and set a GBX 35 price target on shares of Mobico Group in a research report on Wednesday. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average 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.