Mobico Confirms FY 2025 Profit Guidance Ahead of North America School Bus Sale
Why we think this is good
The RNS provides a positive update on the sale of Mobico's North America School Bus business, with the transaction expected to close in July 2025. The company also confirms its FY 2025 Adjusted Operating Profit guidance, which is in line with market expectations. While there are some indications of short-term challenges in obtaining necessary approvals, the overall tone of the update is constructive, with the sale of the School Bus business set to strengthen Mobico's financial position and liquidity. The company's profit guidance, excluding the School Bus contribution, also suggests an underlying improvement in the core business performance.
Key Points
- Mobico to sell North America School Bus business for up to $608 million (~£457 million)
- Expected upfront net proceeds of approximately $365-385 million (~£275-290 million)
- FY 2025 Adjusted Operating Profit guidance of £180 - £195 million, excluding School Bus contribution
- Mobico has strong liquidity and no significant debt maturities due until second half of 2027
Summary
Mobico Group PLC has provided an update on the sale of its North America School Bus business and confirmed its FY 2025 Adjusted Operating Profit guidance. The company expects to close the $608 million (~£457 million) sale of the School Bus business to I Squared Capital in July 2025, with expected upfront net proceeds of approximately $365-385 million (~£275-290 million). Mobico also expects FY 2025 Adjusted Operating Profit, excluding the School Bus contribution, to be in the range of £180 - £195 million. The company continues to have strong liquidity and no significant debt maturities due until the second half of 2027.