Article Highlights
The loss by Cubic Transportation Systems of the coveted revenue-collection contract from Transport for London will hurt the vendor’s ability to win other contracts and to help its parent company repay a heavy debt load.
• Document: Order by Judge Roger ter Haar, Jan. 2026
• Document: Judgment by Judge Roger ter Haar, Jan. 2026
• Letter: Peter Montgomery-Torrellas’ letter to Cubic employees, Jan. 2026
• TfL (London)
• CTS (Cubic Trans. Sys.)
• Cubic Corp.
• S&P Global
• Indra
• IDFM (Paris)
• Elliott Inv. Mgmt.
• Veritas Capital
The recent loss by Cubic Transportation Systems of Transport of London’s coveted revenue-collection contract comes at a bad time for the U.S.-based fare-system vendor, as it faces pressure to win more profitable deals and help stem a serious cash burn by its parent.
That parent, private equity-owned Cubic Corp., delayed an interest payment last week on a sizable share of its hefty debt load, putting it technically in default, stated rating agency S&P Global Monday. That was even though the three-month delay in the interest payment was agreed to by lenders. This will certainly make borrowing more difficult for Cubic Corp. and cash flow will likely remain a problem. Loss of the London deal will not help Cubic recover.
“The contract loss will result in a contraction of Cubic’s revenue once its existing contract ends, which will likely be detrimental to its debt coverage profile,” Pasha Azadmard, S&P’s primary on the Cubic review, told Mobility Payments.
Cubic, in a brief follow-up comment to Mobility Payments, sought to reassure its transit agency clients: “S&P’s action has no impact on CTS customers.” (See below.)
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