Mobico Group PLC (LSE:MCG) shares fell to a new all-time low in early trading as the National Express owner warned that it is on course for the lower end of its full-year profit guidance but remains focused on cost savings and an ongoing review of non-core operations.
The FTSE 250-listed group expects adjusted operating profit for 2025 to come in towards the lower end of its £180 million to £195 million guidance, reflecting competitive conditions for its core UK coach business, as well as soft demand in UK buses and losses from a WeDriveU contract in Washington.
"We continue to focus on simplifying and strengthening the group, taking decisive actions to improve operational and financial performance," said group executive chair Phil White, who took over after previous CEO Ignacio Garat stepped down in April.
Alongside the cost savings programme, White said this included leveraging best practice from thriving Spanish arm ALSA across the business, and "exploring options to monetise the assets of the UK Bus business ahead of franchising".
Discussions with German passenger transport authorities are continuing, he said.
"The key priorities for our new leadership team remain strengthening the group's balance sheet and improving profitability through our strategic initiatives."
The UK division saw mixed results, with coach revenue falling 7.4% and UK bus passenger volumes down 3.7%, although revenues rose modestly.
ALSA grew revenue by 4.1% year-on-year, supported by strong performance across its regional and health transport contracts. As part of its ongoing expansion outside Spain, the division secured a new €500 million, eight-year contract to operate Park & Ride services in Riyadh, Saudi Arabia.
Mobico also confirmed it will not redeem its perpetual hybrid bond at the first call date. The bond’s coupon will reset in February 2026.
The shares dropped over 6% to a new low of 18.57p in early trading, down around 75% this year, before losses were pared and the shares climbed to 21.33p, a fall of 1.7% on the day.
** UPDATE: Adds share price details **