Slide 1: FirstGroup H1 2026 Results
FirstGroup H1 2026 Results 18 November 2025
Slide 2: Agenda
Agenda 1. Headlines 2. Financial review 3. Business review 4. Summary
Slide 3: Strong growth in EPS despite economic and policy headwinds
Strong growth in EPS despite economic and policy headwinds Strategic execution has driven further progress in earnings, portfolio growth, diversification and Group Adjusted Revenue (£m) shareholder returns 834 615 640 576 • Group Adjusted revenue +30% to £834m • Adjusted EPS +16% to 9.9p • Half year
Slide 4: Delivering against our four strategic pillars to drive growth
Delivering against our four strategic pillars to drive growth Deliver, day in Drive modal shift Lead in Diversify day out sustainability our portfolio ✓ First Bus NPS score improved ✓ Hull Trains and Lumo seat ✓ Largest UK electric bus fleet; ✓ First Bus London contributes to +15 capacity utilisatio
Slide 5: Agenda
Agenda 1. Headlines 2. Financial review 3. Business review 4. Summary
Slide 6: Strong H1 financial performance – 16% growth in Adjusted EPS
Strong H1 financial performance – 16% growth in Adjusted EPS • Adjusted operating profit marginally higher: £m (from continuing operations) H1 2026 H1 2025 Change % • acquisitions +£7m; First Rail performance +£5m; decrease in Group costs +£3m; Bus passenger revenue +£8m; Bus efficiencies +£6m parti
Slide 7: Strong growth in adjusted revenue – up 30%
Strong growth in adjusted revenue – up 30% 30.2 1.3 5.5 833.6 150.2 (1.9) 639.6 8.7 H1 2025 First Bus First Bus London First Bus Open Access Other Rail DfT TOC H1 2026 £m passenger acquisition Other revenue growth Services variable fees £m revenue growth • First Bus regional passenger revenue growth
Slide 8: Sustained growth in Group Adjusted EPS
Sustained growth in Group Adjusted EPS 0.2p 0.3p 0.1p 9.1p 0.8p 9.9p 8.5p 0.5p (0.5)p H1 2025 Open Access First Bus Group DfT TOCs Interest H1 2026 Buyback H1 2026 & Rail items pre-buyback Services • First Rail open access & Rail Services: passenger revenue • DfT TOCs1: higher variable fee income pa
Slide 9: Continued investment in growth, fleet and returns
Continued investment in growth, fleet and returns Free cash flow of £78.3m before acquisitions and returns (FY 2025: £113.5m) Cash generated from operations of £223.7m (FY 2025: £207.4m) 37.9 4.4 181.4 78.1 (126.5) (6.5) (12.4) (0.2) (149.5) (37.1) (99.1) (207.6) H1 2025 EBITDA DfT TOC Working Net T
Slide 10: Our disciplined capital allocation policy remains unchanged
Our disciplined capital allocation policy remains unchanged The Group’s strong cash conversion and balance sheet strength enables investment in sustainable, value accretive growth and progressive shareholder returns Maintain a strong Invest in Deliver progressive Return surplus cash balance sheet fu
Slide 11: Financial Outlook
Financial Outlook We expect modest growth in adjusted EPS in FY 2026 and to at least maintain adjusted EPS in FY 2027 • FY 2026 revenue of c.£1.4bn; includes c.£300m from First Bus London First Bus • H2 EBIT margin in regional bus is expected to normalise to c.10% with further efficiencies and annua
Slide 12: Agenda
Agenda 1. Headlines 2. Financial review 3. Business review 4. Summary
Slide 13: Bus H1 adjusted operating profit up 4% in a challenging economic environment
Bus H1 adjusted operating profit up 4% in a challenging economic environment Transition to the £3 fare cap and increased National Insurance contributions have had a significant impact • Adjusted operating profit margin of 6.1% in H1 2026 (8.2% in regional bus); includes NIC margin impact: (1.4)% Fir
Slide 14: Growth and portfolio diversification in First Bus
Growth and portfolio diversification in First Bus £703m £514m First Bus Revenue £505m1 £428m Regional bus Business and Coach Franchising Local tendered and contracted bus services Bus and coach services, large transport Transport for London and regional Mayoral with fare paying passengers contracts
Slide 15: First Bus remains at the forefront of electrification
First Bus remains at the forefront of electrification We are committing significant investment in our bus fleet and depot electrification, strengthening our asset base and unlocking future potential revenue streams • Group decarbonisation investment of c.£105m in H1 2026 alongside co- funding of c.£
Slide 16: Solid performance in open access rail with material growth ahead
Solid performance in open access rail with material growth ahead Hull Trains & Lumo H1 2026 H1 2025 Change % • Track access rights for Lumo Edinburgh-Glasgow extension and additional paths on Lumo and Hull Trains from Dec 2025 awarded by ORR (c.118m seat miles) Revenue (£m) 53.2 51.9 3% • Stirling s
Slide 17: Delivering on our National Rail Contracts and growing Rail Services
Delivering on our National Rail Contracts and growing Rail Services Adjusted Revenue £m H1 2026 H1 2025 Change DfT TOCs Adjusted revenue from DfT TOCs1 24.1 26.0 (1.9) • H1 2026 attributable net income of £15.3m Open access revenue 53.2 51.9 1.3 • SWR transferred to DfTO on 25 May 2025 (H1 2026 Rail
Slide 18: Agenda
Agenda 1. Headlines 2. Financial review 3. Business review 4. Summary
Slide 19: A strong foundation for sustainable value accretive growth
A strong foundation for sustainable value accretive growth As the UK bus and rail sectors transition, we are well positioned to leverage our strong asset base, drive further efficiencies and create further value for all our stakeholders • We expect modest growth in adjusted earnings per share in FY
Slide 20: Appendix
Appendix
Slide 21: Leading in Sustainability is one of our four strategic pillars
Leading in Sustainability is one of our four strategic pillars Investing in decarbonisation, enhancing our operations and driving modal shift reduces our environmental impact, supports growth and prosperity in our communities and is a key driver of our commercial success. ‘AAA’ ranking on MSCI ESG i
Slide 22: Appendix: Our Climate Transition Plan
Appendix: Our Climate Transition Plan We have a comprehensive strategy to meaningfully reduce emissions, manage climate-related risks, drive modal shift and contribute to growth and prosperity in the communities we serve. • Prepared in alignment with the Transition Plan Taskforce (TPT) Disclosure Fr
Slide 23: Appendix: Group Adjusted revenue and earnings
Appendix: Group Adjusted revenue and earnings Our revenue and earnings include underlying fees from rail contracts to reflect the Group's risk and adjust for TOC IFRS 16 leases where the Group has minimal risk. £m H1 2026 H1 2025 £m H1 2026 H1 2025 Adjusted revenue reconciliation: Group Adjusted ear
Slide 24: Appendix: Cash flow by division
Appendix: Cash flow by division H1 2026 H1 2025 Open Open Group Group £m Access & DfT TOCs First Bus Total Access & DfT TOCs First Bus Total items items Other Rail Other Rail EBITDA 28.9 - 73.3 (5.7) 96.5 22.5 - 63.9 (7.9) 78.5 DfT TOC Management fees - 9.2 - - 9.2 - 9.2 - - 9.2 Working capital (5.0
Slide 25: Appendix: Reconciliation of Statutory to Adjusted cash flows
Appendix: Reconciliation of Statutory to Adjusted cash flows Ring fenced cash £m Statutory movements IFRS 16 Other movements Adjusted EBITDA 341.6 (23.5) (221.8) 0.2 96.5 Management fees - 9.2 - - 9.2 Working capital (119.4) 75.9 (1.1) 27.3 (17.3) Cash flow from operations 222.2 61.6 (222.9) 27.5 88
Slide 26: Appendix: IFRS 16 (leases) and First Rail DfT TOCs earnings
Appendix: IFRS 16 (leases) and First Rail DfT TOCs earnings • As at 27 September 2025, £1.0bn of leased assets were recognised as Right of Use assets on the balance sheet • As at the H1 2026 balance sheet date, £1,017.2m of IFRS 16 lease liabilities were recognised in reported net debt, of which £87
Slide 27: Appendix: Open access rail applications in progress
Appendix: Open access rail applications in progress • Paignton - London Paddington (c. 312m seat miles); 5 return services a day • Hereford - London Paddington (c.100m seat miles); 2 return services a day • Extension of Stirling service to c.510m seat miles, with 5 new battery electric trains from D
Slide 28: Appendix: Group accounting for the DfT TOCs and SWR transition
Appendix: Group accounting for the DfT TOCs and SWR transition • Although the Group has very limited revenue, cost and contingent capital risk under the DfT National Rail Contracts, under IFRS 16 disclosure requirements, we are required to recognise right of use assets and lease liabilities for all
Slide 29: Appendix: DfT-Contracted TOCs transition to public ownership
Appendix: DfT-Contracted TOCs transition to public ownership • The Government’s announced policy is to bring the National Rail Contracts into public ownership at the earliest possible opportunity • The Government announced that SWR would be the first DfT TOC to transition on 25 May 2025, with subseq
Slide 30: Appendix: Definitions
Appendix: Definitions • 'Adjusted revenue' is revenue excluding that element of DfT TOC revenue, and related intercompany eliminations, where the Group takes substantially no revenue risk. The Adjusted revenue measure includes management and performance fee income earned by the Group from its DfT TO
Slide 31: Important notice
Important notice This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including (but not limited to) the terms anticipates, believes, could, estimates, expects
Slide 32: First (5
First (5