Free Trial

Mobico (Baa2): FY23 Results

TRANSPORTATION

After twice delaying publication FY23 results miss expectations with outlook also below consensus. Slight negative for spreads although better picture for credit than equity.


• Revenue came in line, but adj. operating profit missed consensus by 3% with cost inflation and Germany margins dragging.

• FCF beat expectations by 9% but restructuring costs leave net debt little changed.

• Covenant gearing increased to 3x from 2.8x (3.5x test limit).

• FY24 forecast adj. operating profit is 7% below consensus at midpoint.

• Delays due to German Rail are now concluded. The company expects pricing and restructuring to drive recovery in profitability.

• Debt reduction remains a priority, targeting 1.5-2x by 2027 but through EBITDA growth rather than balance sheet actions.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.