Jasmine Birtles
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How to Invest in UK Train Companies (Updated for 2025)
Karl
10th Jun 2025
Let’s be honest, the UK’s rail network doesn’t have the best reputation. Delays, cancellations, eye-watering prices… we’ve all been there.
But here’s the twist: investing in UK train companies could actually make you money from the chaos. Really.
If you’ve ever asked, “Can I invest in British train companies?”, the answer is yes (with a few caveats).
In this guide, we’ll show you exactly how to invest in UK train companies, which ones are actually investable, and how to get started.
The UK’s Railway Network
We’re not going to sugar-coat it: the British rail system is a mess. But messy systems often leave room for opportunity, especially for investors.
Since the privatisation of British Rail in the 1990s, our trains have been run by a mixed bag of private firms, foreign state-owned operators, and the occasional government-owned body. This creates an odd but potentially profitable setup for shareholders.
So, if you’re asking “Why would anyone invest in UK trains?”, here’s why:
- Rail is an essential service.
- It’s a natural monopoly in many areas (competition is minimal).
- Even when passengers suffer, shareholders can still benefit.
- Let’s take a look at who owns what.
Also read: How to invest in the UK stock market
Who Owns the Train Companies Operating in The UK?
Most UK train services are operated by foreign companies, and many are backed by governments. That means you can’t always invest directly in a train line like “Avanti West Coast” or “Greater Anglia”, but you can invest in the parent companies.
Here’s a breakdown of who runs some of the major UK rail services:
| Train Operator | Owned By | Publicly Traded? |
|---|---|---|
| Avanti West Coast | 70% FirstGroup (UK), 30% Trenitalia (Italy) | FirstGroup is listed on LSE |
| South Western Railway | 70% FirstGroup, 30% MTR (Hong Kong Gov) | Yes (FirstGroup) |
| Lumo / Hull Trains / Great Western | 100% FirstGroup | Yes |
| West Midlands Trains | Transport UK (Dutch Gov), East Japan Railway (15%), Mitsui & Co (15%) | Yes (East Japan Railway, Mitsui & Co) |
| Greater Anglia | 60% Transport UK, 40% Mitsui & Co | Yes (Mitsui & Co) |
| Southern / Thameslink / Northern | Govia (Go-Ahead + Keolis) | Go-Ahead is private; Keolis is part of SNCF (France) |
| Grand Central / London Overground | Owned by Arriva (was Deutsche Bahn, now I Squared Capital) | Private for now |
Some companies are owned by private equity firms or state-run operators, so not all of them can be bought on the stock market.
Train Companies in Public Ownership
ScotRail, Welsh Railways, East Coast Mainline, Transpennine, Northern, Southeastern, and the Caledonian Sleeper are all firms currently in public ownership.
Network Rail
If you were wondering, ‘Network Rail’ owns, operates, and develops Britain’s railway infrastructure. Network Rail is Government-owned and operates as an ‘arm’s length body’ of the Department for Transport.
How to Invest in UK Train Companies
Now that you know who’s running the show, here’s how to get your foot in the (carriage) door.
1. Buy shares in listed train operators
If you want direct exposure, you’ll need to invest in companies that are publicly traded and own stakes in UK train services.
These include:
FirstGroup (LSE: FGP)
-
Owns multiple UK rail brands: Avanti, Great Western, Lumo, Hull Trains
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Up 52% in the past 12 months (as of June 2025)
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Offers regular dividends to shareholders
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Available on most UK investing platforms
Mitsui & Co (TYO: 8031)
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Holds 40% of Greater Anglia and 15% of West Midlands Trains
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Listed on Tokyo Stock Exchange
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Share price rose over 30% in 2024
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Offers global rail exposure + diversified business model
East Japan Railway (TYO: 9020)
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Owns 15% of West Midlands Trains
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Japan’s largest passenger railway company
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Solid dividend track record
To invest in non-UK shares like Mitsui & Co or East Japan Railway, you’ll need an investment platform that offers international trading access, such as Interactive Brokers, Hargreaves Lansdown, or IG.
Alternative Ways to Profit from UK Rail
If owning a slice of a train company doesn’t appeal, but you still want exposure to rail, you could invest in companies that indirectly profit from the demand of train services.
One of the most well-known names for UK investors in Trainline.
Trainline Plc (LSE: TRN)
If you’re looking for a simpler way to invest in the UK rail sector without getting tangled up in the complicated web of ownership between foreign governments and private operators, then Trainline Plc could be a smart bet.
Trainline is an online ticketing platform that sells train and coach tickets across the UK and much of Europe. Rather than owning or operating any trains itself, Trainline acts as the go-to middleman for rail passengers. And that’s exactly why it stands out as a potentially clever investment.
Why? Because Trainline profits from rail usage in general, not from any one operator’s success (or failure).
So, whether you’re booking a ticket on a FirstGroup-owned service, a state-run route, or even a cross-border train in France or Germany, Trainline gets a cut. That means it can benefit from rising demand for train travel, even if some companies struggle with delays, strikes or poor service ratings.
Another major plus is that Trainline is listed on the London Stock Exchange, making it easy to buy shares via most UK trading platforms.
Final Thoughts
Is investing in UK train companies a glamorous ride? Not really. But it can be a profitable one, especially if you’re smart about which businesses you back.
- Focus on parent companies like FirstGroup, Mitsui & Co, or East Japan Railway.
- Don’t forget about adjacent players like Trainline Plc.
- And always do your research before hopping on board.
Want help getting started? Check out our full guide on how to buy shares in the UK- it walks you through everything.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. Companies listed above are not necessarily endorsed by Money Magpie. When investing your capital is at risk.
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