Firstgroup shurgs off rail nationalisation with open access growth
Firstgroup shares soared more than eight per cent on Tuesday after the transport giant reported a bumper set of annual results.
Profit came in ahead of expectations as management launched a £50m share buyback programme. Shares are now up close to a third this year to date.
Also encouraging for investors was “further growth in open access,” the lesser-used model in which operator’s shoulder commercial risk in exchange for a greater share of profit.
First Rail ran 2.9m open access passenger journeys in 2025, up from 2.7m the year prior. Profit and revenue from open access both increased to £106.4m and £30m respectively.
Labour’s renationalisation programme has sidelined open-access despite consistently strong performances from the likes of Lumo and Hull, Firstgroup’s subsidiaries.
The transport operator has given a clear signal in recent weeks of its intention to keep investing in open access.
Last week, it signed a rolling stock agreement for delivery of five Class 222 trains from Eversholt Rail, which it intends to use on open access rail services from London Euston to Stirling.
Firstgroup to continue open access drive
This was followed up by a fresh application to the Office of Rail and Road (ORR) to run a new route between Hereford and London.
Firstgroup already has a £500m order for 14 new trains from Hitachi which can be extended should its applications be successful.
“Open access operators deliver trains to under-served routes, offering passengers choice at competitive fares,” Firstgroup boss Graham Sutherland said last week.
“Passenger surveys routinely report very high satisfaction levels, and open access operators are giving customers new travel options and driving demand, paying their own way without public funding.”
Should its current open-access applications be successful, Firstgroup will treble its existing capacity, according to its annual results on Tuesday.
“Growing our open access business is a key focus for the group and we are working hard to drive efficiencies, add capacity and apply for new routes where we can connect under-served communities, and support economic growth and employment.”
“The progress we have made during 2025 will see us at least doubling our existing seat capacity in the next two to three years and trebling Lumo’s services.”