Business
Update on the WMATA Contract
Mobico Group PLC has been notified by the Washington Metropolitan Area Transit Authority (WMATA) of the termination of its paratransit services contract, effective immediately, following a civil lawsuit filed by Mobico's U.S. subsidiary, Diamond Transportation Services Inc., for breach of contract. This contract, awarded in 2024 for a five-year period with an approximate total revenue of $370 million, had become unprofitable due to lower-than-projected volumes and loss of exclusivity. Mobico is cooperating with WMATA for a smooth transition and cannot comment further due to ongoing and potential reciprocal litigation, with no certainty regarding the outcome. Disclaimer*
About this update from Mobico Group Plc
22 May 2026 Mobico Group PLC ("Mobico" or the "Group") Update on the WMATA Contract Further to prior disclosure, Mobico notes that on 12 May 2026 the Washington Metropolitan Area Transit Authority ("WMATA") issued a notice of termination to Mobico's U.S. subsidiary, Diamond Transportation Services Inc. ("Diamond"), to cease operating paratransit services effective on that date. Diamond is co-operating with WMATA to ensure an efficient transition of services. This follows the filing of a civil lawsuit by Diamond on 28 January 2026 for breach of contract against WMATA in the U.S. District Court for the District of Columbia, as detailed in Mobico's unaudited 2025 results. Due to ongoing and potential further reciprocal litigation, neither Mobico nor Diamond can comment further. There can be no certainty as to the outcome of any ongoing or potential future litigation in relation to the contract. A further update will be provided as appropriate. Mobico contacts for enquiries: Investor Relations [email protected] Headland contacts for enquiries: Stephen Malthouse +44 (0)7734 956 201 Matt Denham +44 (0)7551 825 496 Antonia Pollock +44 (0)7789 954 356 Notes to Editors Mobico was awarded the WMATA contract to provide paratransit services throughout the Washington metropolitan area in 2024. The contract was for a five-year period from 1 July 2024, equivalent to total contract revenue of approximately $370m, with five one-year renewal options (exercisable at WMATA's discretion). As previously disclosed, during 2025 the contract turned unprofitable in part due to lower-than-projected volumes and loss of contracted exclusivity, with an onerous contract provision included in Mobico's unaudited 2025 results. As a result, the Group sought legal redress to recover its losses. Notes: Legal Entity Identifier: 213800A8IQEMY8PA5X34