Mobico Group (LON:MCG) delivered full-year operating profits that exceeded the consensus view, but its outlook for the year ahead signals a slowdown in growth. The company reported earnings before interest and taxes of £198 million, outpacing analysts' expectations of £181 million - a 9% beat on consensus.
The stronger-than-expected EBIT performance was underpinned by a record showing in the ALSA division, which recorded a 12% rise in revenues during the period. Overall Remainco revenues totalled £2,760 million, up 6% year-over-year but falling £14 million short of the £2,774 million consensus estimate. The group reported covenant leverage at 2.7 times.
Outlook
For the current financial year Mobico set an EBIT guidance range of £195 million to £210 million. At the midpoint this implies a 2% increase year-over-year, a marked deceleration from the 9% growth achieved in the prior year. The midpoint of the guidance sits approximately 3% below the consensus estimate of £208 million.
The company noted that the guidance does not factor in potential benefits from revised German Rail contract terms, with those changes expected by June. That exclusion leaves an element of upside contingent on negotiations or finalized contract terms.
Division performance
- ALSA - revenues +12%, contributing strongly to the year -over-year EBIT outperformance.
- North America - revenues +5%.
- UK - revenues -6%.
- Germany - revenues -2%.
Market reaction has been muted in light of the mixed message: while the full-year EBIT beat consensus, management highlighted a slower expected growth rate and shares remain significantly lower than a year ago, down 70% over the past 12 months.
The figures present a nuanced picture: improved operating profit against expectations in the most recent full year, uneven regional revenue trends across divisions, and a conservative near-term forecast that omits possible gains from pending German Rail contract adjustments.