FirstGroup PLC (LSE:FGP) shares steamed 7% higher to 207.28p after the rail and bus group announced a £50 million share buyback alongside its final results.
Adjusted revenue of £1.37 billion was reported for the year to 29 March, up 7% on the previous year, driven by gains in both bus and rail.
Adjusted operating profit rose to £222.8 million, with growth across all divisions.
As well as the buyback, shareholders were rewarded with a 6.5p total dividend, up from 5.5p a year earlier.
The group says it remains well positioned amid the sector’s shift toward decarbonisation and open access rail.
CEO Graham Sutherland said: "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."
Current trading and the outlook for the 2026 financial year were both in line with the group's expectations, with adjusted earnings per share expected to be at least maintained.