Mobico finalises German rail contract overhaul as turnaround efforts gather pace Proactive uses images sourced from Shutterstock
Mobico Group PLC (LSE:MCG) has signed formal contracts with five German Public Transport Authorities in North Rhine-Westphalia and adjacent regions, implementing previously announced changes to its Rhein-Münsterland Express (RME) and Rhein-Ruhr-Express (RRX) rail contracts.
The National Express owner said the agreements put into effect the structural changes outlined by the company on 29 January 2026.
Under the revised RME contract, which covers lines RE 7 and RB 48, the arrangement converted to a gross contract structure from 1 January 2026. The change removes revenue risk from National Express. The revised terms also align with current industry norms and extend the contract by two years to 2032.
For the RRX network, covering lines RE 1, RE 5, RE 6, RE 11 and RE 4, the existing loss-making contracts will be shortened by three years and will now end in 2030.
Mobico said the revised RRX timetable will support a coordinated retendering process aligned with North Rhine-Westphalia’s regional transport plan.
The contract changes represent a significant step in Mobico’s efforts to improve profitability and strengthen its balance sheet. Germany has been a focus for investors since the group highlighted losses on its rail operations and confirmed it was in discussions with regional transport authorities over contract restructuring.
The company said it expects to provide more details on the revised contracts in its audited results for the 15-month period ending 31 March, which are scheduled for publication in July.