Mixed Q1 for Mobico as Spain offset by weaker UK, Germany

(Sharecast News) - Troubled bus and rail operator Mobico on Monday reported a 9% rise in first-quarter revenues, driven by a strong performance in Spain, offset by declines in the UK and Germany. Revenue from the ALSA division in Spain surged by 13%, while the UK and Germany were down 2% and 3% respectively. North America, where the group is offloading its school bus operations, rose 13%.

The update comes three weeks after chief executive Ignacio Garat stepped down in response to a profit alert sent its shares plunging by more than 40%.

Mobico, formerly National Express, said the revenue decline in Germany was as a result of increased penalties due to cancellations caused by driver shortages sector-wide, while in the UK its coach business saw sales down 6%.

Commercial bus revenues in the UK were up 0.3% year on year although passenger volumes were flat.

The company added that its planned sale of its US school bus to I Squared Capital for up to $608m - with upfront net proceeds expected to be $365m - $385m - was on track for early in the third quarter of 2025.

"In my first weeks in the role I have met with many of our shareholders and spent time with our many businesses. I can see that considerable value and momentum exists across the Group, and 9% revenue growth in the first quarter is evidence of continuing growth in demand for our services, particularly in ALSA," said executive chair Phil White.

"Our priority remains in strengthening our balance sheet and accelerating the pace of operational and financial improvement to drive the change that is necessary to creating a business that can take advantage of the opportunities ahead."

AJ Bell investment director Russ Mould saidL "After a disastrous update from Mobico a few weeks ago which saw the company report heavy losses, sell its US school bus arm for less than expected and its CEO Ignacio Garat fall on his sword, there will be some relief things haven't got drastically worse based on first-quarter results."

"There is still plenty to do to get the business back on the road but there were some bright spots, particularly in Europe, which suggest the business could be steered back on course."

Reporting by Frank Prenesti for Sharecast.com