Mobico Group (LON:MCG) Announces Earnings Results

Mobico Group (LON:MCG) issued 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 Stock Up 9.0%

Shares of Mobico Group stock traded up GBX 2.49 during mid-day trading on Wednesday, hitting GBX 30.19. The stock had a trading volume of 36,017,402 shares, compared to its average volume of 8,952,994. The firm has a 50-day moving average of GBX 23.62 and a two-hundred day moving average of GBX 23.07. The firm has a market cap of £184.27 million, a P/E ratio of -0.58 and a beta of 1.31. Mobico Group has a 12-month low of GBX 17.06 and a 12-month high of GBX 38.12.

Analysts Set New Price Targets

Several research firms recently commented on MCG. Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 70 price target on shares of Mobico Group in a report on Wednesday. Berenberg Bank reissued a “hold” rating and set a GBX 35 price objective on shares of Mobico Group in a research note 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, Mobico Group has a consensus rating of “Hold” and a consensus target price of GBX 43.33.

Mobico Group Company Profile

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.