FirstGroup Dips 10% Despite Surpassing Interim Forecasts — Signals Start of “Transition”

UK transport operator FirstGroup PLC (LSE: FGP) saw its shares tumble roughly 10% to a six‑month low of 180p after releasing its interim results for the six months ended 27 September 2025. Adjusted revenue rose 30% to £833.6 million. The uplift was driven by improved rail performance and growth in its bus operations (including First Bus London). Adjusted operating profit nudged up to £103.6 million, while adjusted earnings per share climbed 16% to 9.9p — aided by a repurchase of 22 million shares. But the upbeat figures were tempered by a free cash outflow of £35.6 million, largely due to accelerated investment in bus electrification and recent acquisitions. The company reaffirmed its guidance for modest EPS growth in the full year and declared an interim dividend of 2.2p per share. Analyst commentary from broker Peel Hunt noted that while the operating profit beat expectations, net debt is now expected to be higher (£125‑135 million) for year‑end compared to prior guidance (£120‑130 million). The company stated that FY27 guidance is to maintain EPS at least — but possibly slightly below earlier expectations. One takeaway: the financials are sound, but FirstGroup says it is entering a “period of transition”, which may be weighing on investor sentiment. #FirstGroup #TransportEarnings #UKRailBus #PeriodOfTransition #SlimScan #GrowthStocks #CANSLIM