Kelsian Group (ASX:KLS) has bolstered its international portfolio, announcing that its UK subsidiary, Huyton Travel, has been awarded the Tranche 1, Category 2 bus franchising contracts by the Liverpool City Region Combined Authority.
The strategic win marks a pivotal expansion for the Australian-based transport giant within the United Kingdom’s increasingly regulated public transport sector.
Under the terms of the agreement, Kelsian will manage the operation and maintenance of 73 buses utilising two leased depot facilities.
The contract is slated to commence in January 2027 with an initial five-year term, supplemented by a two-year extension option.
Financial projections estimate the deal will generate approximately $80 million in total revenue over the full seven-year period.
To support this mobilisation, Kelsian has committed a capital investment of roughly $8 million, with $2.4 million allocated for the 2026 financial year and the remainder following in 2027.
Kelsian UK Managing Director, Samuel Ribeiro, expressed confidence in the move, noting that the contracts reflect the LCRCA’s trust in the company's ability to deliver safe, reliable transport solutions.
He highlighted that the deal includes vital revenue indexation mechanisms designed to insulate the business from volatile cost inputs, such as diesel fuel.