FirstGroup PLC (LSE:FGP) shares strengthened, rising 7.7%, changing hands at 188p, after announcing it will launch a new £100 million share buyback after higher revenue, improved earnings per share and strong cash generation underpinned another year of shareholder returns.
The UK transport group reported adjusted revenue of £1.72 billion for the 52 weeks to 28 March 2026, up 25% from £1.37 billion a year earlier. Adjusted operating profit was slightly lower at £219.4 million, compared with £222.8 million, as rail earnings softened, though adjusted EPS rose to 20.3p from 19.4p.
The board proposed a final dividend of 5.0p per share, taking the full-year payout to 7.2p from 6.5p. FirstGroup said it returned £89 million to shareholders during the year through dividends and completed a £50 million buyback programme, with the new £100 million buyback expected to be completed over the next 12 months.
First Bus carried much of the operational growth, with revenue up 33% to £1.44 billion and adjusted operating profit up 7% to £102.8 million despite a £26 million drop in fare funding, lower passenger volumes and a roughly £15 million hit from higher employer National Insurance contributions.
First Rail open access passenger journeys rose 4% to 3.1 million, while open access revenue increased to £109.3 million. The group said it expects to maintain adjusted EPS in FY 2027 and generate around £400 million of free cash over the next three years.
