FirstGroup Shares Surge 7.7% on New £100M Buyback and Robust Revenue Growth

In a move reflecting strong cash flow dynamics within the UK transport sector, FirstGroup announced robust financial results that propelled its shares significantly higher. The company's stock jumped 7.7% to 188p following the unveiling of a new £100 million share buyback program. Additionally, the group reported a 25% increase in adjusted revenue to £1.72 billion for the fiscal year ending March 2026, driven by strong operational performance and solid cash generation.

This outperformance by FirstGroup comes as the transport sector navigates mixed economic signals, with the company outpacing peers like Mobico Group (formerly National Express), which has faced margin pressures in recent periods per market data. Compared to the previous fiscal year, the 25% revenue growth represents a significant acceleration, reflecting the success of the company's strategy in fleet optimization and increasing passenger volumes, thereby bolstering investor confidence in dividend sustainability.

Technically, FirstGroup shares are trading at 188p (close June 17, 2026), with immediate support levels identified near 175p. Investors are now looking ahead to upcoming UK Gross Domestic Product (GDP) data, as any shifts in economic growth could impact demand forecasts for the public transport sector. Traders will also monitor the execution pace of the buyback program as a primary catalyst for maintaining the stock's upward momentum.