Mobico Group
MCG · Main Market · Travel and Leisure · mcap £246m · 38.7p 5 open situations →
- EV
- £1.5bn
- EV / EBIT
- 155.0x
- Net debt
- £1.2bn
- FCF yield
- -44.2%
- Revenue
- £2.7bn
- Cash returned
- 0.6%
- Share price 1y
- +39%
- Insiders 12m
- no deals
- Next report
- around 25 Feb
Mobico runs buses, coaches and rail services, mainly in Spain and Morocco (ALSA), Germany, the UK and, until 2025, North America. It earns most of its income from long-term public transport contracts and coach ticket sales.
Open · 5
UK Bus asset monetisation
Part of Leverage reduction options review – Advisers evaluating options; update in H2 2026
Depots and land were sold at end-2025, giving a £4.3m profit benefit. On 18 Aug 2026 Mobico agreed in principle to sell UK Bus to WMCA for about £24m upfront after liabilities. The 8 Sep 2026 Q2 update restates the November 2026 completion timing, and says the sale monetises the assets and de-risks the Group from franchising uncertainty. UK Bus Q2 revenue fell 1.8%.
- Timing
- Completion ahead of transition to franchising
- Buyer
- West Midlands Combined Authority (WMCA) 8 Sep 2026 ↗
- Price
- About £24m upfront residual proceeds after ~£78m liability deductions 8 Sep 2026 ↗
- Deferred
- £5.5m deferred: half end-2027, half on Birmingham Central depot vacant possession (~end 2029) 8 Sep 2026 ↗
- Contingent
- £9.9m payable if WMCA reverses or stops progressing franchising before May 2028 8 Sep 2026 ↗
- Business sold
- UK Bus: 15m revenue £338m, Adj. Operating Profit £2m; Q2 2026 revenue -1.8% 8 Sep 2026 ↗
Next: Completion of UK Bus sale to WMCA · 30 Nov 2026
- 8 Sep 2026 Agreement in principle; completion expected November 2026
- 18 Aug 2026 Agreement in principle reached; completion expected around November 2026
- 29 Jul 2026 Progressing; completion expected before franchising
- 26 Feb 2026 Ongoing; depot and land sold end-2025
Possible offer
A bidder has made a possible offer for Mobico Group at 46p in cash, a premium of 55% on 29.7p.
- 21 Oct 2026 approach · 46p
Group cost reduction programme
Simplify for Success programme was delivering £75m in-year savings in 2026. The 15-month results say it is on track for £100m of annualised opex savings and capex below £120m in 2027, under a leaner, more integrated Group.
- Savings target
- £100m annualised opex savings, on track
- Capex
- Below £120m in 2027 (12m 2025: £152m excluding NASB)
Next: Deliver £100m annualised opex savings; capex below £120m in 2027
- 29 Jul 2026 On track; target now £100m annualised savings
- 19 Jun 2026 Binding contracts signed with all five PTAs
- 26 Feb 2026 Agreement in principle; binding contracts pending
- 29 Jan 2026 Agreement in principle reached; contracts pending
Leverage reduction options review
Includes UK Bus asset monetisation – Agreement in principle; completion expected November 2026
Covenant gearing rose to 2.9x and cash outflows from legacy liabilities constrain net debt reduction. The Board says debt reduction is its key priority and is working with advisers on all strategic and financial options, with an update expected in the second half of 2026.
- Covenant gearing
- 2.9x at 31 March 2026 (Dec 2025: 2.7x)
- Liquidity
- £0.8bn: £242m net cash and undrawn £600m RCF
- Net debt
- £1,133.6m
- Next milestone
- Update expected in second half of 2026
Next: Update on strategic and financial options
- 29 Jul 2026 Advisers evaluating options; update in H2 2026
WMATA contract dispute
Next: further update on litigation and transition as appropriate
- 22 May 2026 WMATA terminated contract 12 May; litigation ongoing
- 26 Feb 2026 Onerous provision booked; legal action started
Closed · 4
Company filings. Not investment advice.