FirstGroup launches new share buyback amid forecast cash flow progress
FirstGroup PLC on Thursday announced a new share buyback and raised its dividend as it projected healthy free cash flow
generation over the coming years.
The Aberdeen, Scotland-based bus and rail transport provider increased its full-year payout to 7.2 pence per share, up 11% on-year from 6.5p per share, including a final dividend of 5.0p per share, up from 4.8p per share.
In addition, it launched a further £100 million share buyback programme which is expected to completed over next 12 months. Last June, the firm announced a £50 million buyback which it completed last October.
FirstGroup said it anticipates free cash generation of £400 million over the next three years and ‘remains committed’ to returning any surplus cash to shareholders.
Shares in FirstGroup rose 5.3% to 183.70p each in London on Thursday, the best performing stock on the FTSE 250 which was down 0.4%.
The news came alongside full-year results. FirstGroup said pretax profit fell to £158.8 million in the 52 weeks ended March 28 from £169.6 million the year prior.
Earnings per share edged up to 21.4 pence from 21.3p, or rose 7.2% to 20.7p from 19.3p on an adjusted basis. Revenue declined 9.2% to £4.75 billion from £5.23 billion.
‘Our strong performance in financial 2026 against significant headwinds has reinforced our track record for delivery and shareholder returns,’ said Chief Executive Graham Sutherland.
Looking ahead, FirstGroup expects to maintain adjusted EPS in financial 2027, from a ‘higher quality’ earnings base.
Copyright 2026 Alliance News Ltd. All Rights Reserved.