Mobico has reported further losses for its National Express coach operations in the UK amid more positive results across the business globally, according to the group’s accounts for the 15 months ended 31 March.
Its UK coach arm posted an adjusted operating loss of £22.9 million for the accounting period, which was extended by three months to allow new auditors KPMG more time to complete its work. Almost half of that (£11 million) occurred during the three months of 2026.
Those losses compare to the £2m shown for the 15 months to March 2025, with the report showing full breakdowns for both periods.
The group as a whole, which provides coach, bus and rail services in Europe, the United States, North Africa, and the Middle East, reported adjusted revenue increasing by 5.9% to £3.42 billion and adjusted operating profit rising by 17.6% to £231m.
In the UK, the fortunes of the coaching business stood against a 14.3% reduction in profits to £2.4m for its bus operations, with revenue increasing 1.5% to £337.8m.
Mobico says the reduction in UK coach revenue was due to increased competition leading to passenger volumes declining by 4.8% compared to the 15 months to March 2025.
The competition was focused on “key intercity and airport routes”. It adds that the revenues for the period up to March 2025 benefited from network revenue and margins from rail disruption.
The 2026 figures include a circa £4m “legal claim provision covering legal costs, potential penalties for missed vehicle orders and disputed unpaid amounts owed by a supplier”.
Mobico says the
amalgamation of the UK coach arm with its Spanish-headquartered division Alsa, which was announced in September 2025, was expected to deliver savings throughout the rest of this year. However, despite the “ongoing network optimisation and cost-efficiency programmes” that that brings, UK coach is expected to record losses again for the 2026 calendar year.
Commercial passenger volumes on National Express bus services “reduced in line with broader industry trends and macroeconomic headwinds”, according to Mobico.
Increased costs for UK bus were partially mitigated by an 8.6% fare increase implemented in June 2025, while adjusted operating profit benefited from £4.3m of property and land disposals in December 2025.
It adds that driver pay awards and the government’s increase in employer national insurance “outpaced revenue expansion and enhanced local authority network support”.
Ahead of Transport for West Midlands making its first contract awards for a bus franchising programme which is set to begin in late 2027, “the group continues to explore options to structurally de-risk the business and monetise its operational assets”. It adds that it “is leveraging Alsa’s extensive experience in running franchised bus networks to pursue new opportunities with a focus on sustainable returns”.
After Acocks Green depot and associated land were sold in December 2025, the “de-risking” process is also set to include a “commercial transfer of ZEV availability contracts, which currently incur an annual operating expenditure of approximately £20m”.
The group says it expects UK bus to break even in the 2026 calendar year.
Mobico increased its profit guidance across the global business, with Alsa’s coach and bus operations in Spain – which account for more than half of global group revenue – performing strongly.
Paco Iglesias, Group CEO, says: “Mobico has maintained its positive performance through the first quarter of 2026, driven by continued growth in Alsa and a resumption of full-service levels in Germany from the end of 2025. We are increasing our adjusted operating profit guidance for calendar year 2026 to £215m–£230m.
“Debt reduction remains the Board’s key priority; however, cash outflows associated with legacy liabilities continue to constrain our capacity to reduce net debt. We are working closely with our advisers to evaluate all our available strategic and financial options to accelerate leverage reduction, and expect to provide an update in the second half of the year.”
