Mobico has announced that its operating profit is set to reach the lower end of its £180m to £195m guidance in the year to 31 December.

The public transport group, previously known as National Express Group, stated in its latest trading update that its revenue increased by 5.4% year-on-year in the nine months to 30 September, while its UK revenue dropped by 3.2% in the three months to the same date.

It added that its UK coach revenue fell by 7.4%, reflecting Mobico’s exit from loss-making entities in the NXTS business in H1 2025, and increased competition in key routes.

However, its bus revenue increased by 2.9% in this period, despite a 3.7% decline in both commercial revenue and passenger numbers.

The firm’s Spanish division, ALSA, saw its revenue rise by 4.1% year-on-year, following continued growth across its portfolio, including a strong performance in regional and urban contracts.

Meanwhile, its German rail division recorded a revenue jump of 14.3%, due to a reduction in penalties resulting from actions to improve operational performance.

Group executive chair at Mobico, Phil White, said the firm would continue to focus on simplifying and strengthening the group.

He added: "These actions include a comprehensive cost savings programme, further leveraging ALSA's best practice across the business and exploring options to monetise the assets of the UK Bus business ahead of franchising.

"We are on track to deliver on our guidance for the year of adjusted operating profit in the range of £180m to £195m, albeit we expect this will be towards the lower end due to the competitive environment for UK coach, reduced passenger numbers in UK bus and a loss-making WeDriveU contract in WMATA. The key priorities for our new leadership team remain strengthening the group's balance sheet and improving profitability through our strategic initiatives."

Following the update, Mobico’s share price remained flat, after falling by almost 73% in the year-to-date.

Investment director at AJ Bell, Russ Mould, concluded: "Mobico feels like it has been in the garage for repairs for years. Recently appointed boss, Phil White, is engaged in yet another effort to get the share price spluttering into life.

"This involves cost savings and selling off underperforming assets but also trying to get other parts of the business to take some driving lessons from its Spanish arm ALSA. This operation is thriving in comparison with the rest of the group and expanding beyond its Spanish base with a major contract win in Saudi Arabia.

"On a company-wide basis, there’s little sign of tangible progress so far, with operating profit for 2025 expected to come in at the lower end of expectations."

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