Firstgroup named preferred operator for London Overground suburban rail network

(Sharecast News) - Public transport operator FirstGroup said on Wednesday it had been named preferred operator for the London Overground suburban rail network contract by Transport for London, worth around £3bn over an initial eight‑year term. The contract, which was due to begin on 3 May 2026, will see its First Rail London subsidiary take responsibility for train service delivery and station management, while Transport for London will retain all revenue risk.

FirstGroup said the agreement, which has a possible two‑year extension, included plans to boost services, improve customer experience and introduce sustainability measures aimed at cutting emissions. The group will also provide a £30m performance bond and an £80m parent company guarantee.

Chief executive Graham Sutherland said: "The London Overground has greatly improved connectivity in London, with around four million passengers now using the service every week. We are delighted to have been named as the preferred operator for the service from next May and look forward to welcoming employees who will be joining the group and to play our part in the success of this vital rail network.

"We are an experienced and trusted partner in public transport and look forward to building on our relationship with TfL, for whom we already operate buses, trams and the London Cable Car. Our successful bid for this contract represents another significant step in our strategy to diversify and grow our portfolio, and we will continue to evaluate further growth opportunities like this."

As of 0815 GMT, Firstgroup shares were up 3.83% at 181.80p.

Reporting by Iain Gilbert at Sharecast.com