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Mobico Group, the parent company of National Express, has reported a 2% decline in UK revenue for the first quarter of 2025, as the company continues efforts to stabilise its domestic operations.

The UK remains a key focus for the group’s wider turnaround strategy, with both its coach and bus businesses navigating a challenging operating environment.

National Express expands into Scotland
National Express coach

The fall in UK revenue contrasts with stronger performances in Mobico’s international divisions, which helped the group achieve overall revenue growth of 9% year-on-year.

UK Coach and Bus

Revenue from UK Coach services declined by 6% in Q1 compared to the same period last year. However, when adjusted to remove the one-off impact of rail strikes in early 2024, which temporarily boosted coach demand, the business saw a modest increase of 1% on a normalised basis.

Passenger numbers have remained relatively steady, but pricing and service frequency adjustments have limited overall revenue gains.

In the UK Bus division, commercial revenue increased slightly by 0.3%, with passenger volumes broadly flat year-on-year. The division is operating under an interim funding agreement for 2025 following the scheduled end of its previous arrangement with Transport for West Midlands (TfWM) at the end of December 2024.

The company has also acknowledged the recent announcement by TfWM to introduce bus franchising across the region. Mobico said it is open to engaging with the new model but emphasised the importance of balancing service delivery with financial sustainability.

Turnaround Efforts

Mobico’s UK operations are undergoing a “large-scale, complex turnaround” as the company seeks to improve performance following a period of under-delivery. This includes operational changes, cost controls, and efforts to adapt to changes in public funding and regional transport policy.

The Group’s wider financial strategy includes a 25 million GBP cash improvement and debt reduction target for 2025, part of a broader plan to strengthen the balance sheet and focus on more stable revenue streams.

Mobico has stated its intention to continue investing in service quality and efficiency in the UK while engaging with local authorities on future funding and operating models.

Meanwhile, international markets, such as Spain and North America, are providing revenue growth. In Spain, ALSA revenue rose by 13% year-on-year, while North American operations delivered 13% revenue growth.

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