Still rolling, no derailment
FirstGroup’s latest pre-close trading update is basically the corporate version of “we’re good, thanks for asking.” Both First Bus and First Rail are trading in line with expectations for the financial year ending 28 March 2026, and management still sees modest growth in adjusted earnings per share for FY 2026.
The boring part that actually matters
If you’re an investor, the interesting bit isn’t just that the company says business is steady. It’s that FirstGroup is also trying to keep its cost base from becoming a drama series. The group said it has enhanced fuel and electricity hedging for FY 2027 and FY 2028, with about 88% of fuel needs hedged for one year and 53% for the next, plus a meaningful chunk of electricity use covered.
That’s basically the business saying: “We’d prefer our energy costs not behave like a toddler on espresso.” For a transport operator, that kind of protection can help smooth margins and make earnings less jumpy.
Debt, but make it manageable
FirstGroup also expects to finish FY 2026 with adjusted net debt of £135 million to £145 million. That’s not exactly victory-lap territory, but it gives investors a cleaner read on balance-sheet discipline than a vague “we’re working through some things” update.
Big picture: this isn’t a fireworks headline. It’s more like a green light on the dashboard — steady operations, some cost protection, and a mildly reassuring earnings outlook. In a market that hates surprises, that kind of predictability can still count for something.