Costain says trading as expected, eyes acceleration in second half
Idag, 11:34
(Alliance News) - Costain Group PLC on Thursday said it was trading as expected so far in 2026, with full-year earnings weighted to the second half.
The Maidenhead, England-based construction and engineering company is eyeing growth in revenue and adjusted operating profit in 2026, alongside an adjusted operating profit margin of 4.0%.
In 2025, revenue was GBP1.05 billion and adjusted operating profit GBP47.1 million, for a margin of 4.3%.
"The group is making good progress towards the expected step change in financial performance in FY27 and beyond. Contract mobilisations and increased activity levels, reflecting an acceleration in customers' investment spending plans, are expected to build during the second half of FY26. As a result, and as previously indicated, FY 26 revenue and adjusted operating profit is expected to be second half weighted," Costain explained on Thursday.
It is targeting a net cash position of GBP175 million at the end of 2026, "after the partial unwind of historic working capital benefits", as well as a GBP20 million buyback scheme and plans to double cash dividends.
As of Wednesday, Costain had repurchased shares worth GBP4.0 million under the buyback scheme.
It has extended an undrawn GBP100 million revolving credit facility and GBP295 million bonding facilities by a year to September 2030.
Costain estimated that its forward work position is broadly consistent with the GBP7 billion figure reported at the end of 2025, and noted that "the pipeline of bidding opportunities remains strong across all sectors".
Approximately 51% of the GBP7 billion in forward work is with private and regulated customers, versus 30% two years ago. The allocation to central government customers has reduced to 31% from 64%, while the proportion of devolved government customers has risen to 17% from 6% two years prior.
Costain has secured work with fellow London listings National Grid PLC and Severn Trent PLC's water division, alongside other private and public UK customers.
The company is due to publish half-year results on August 13.
Its shares rose 2.2% to 201.00 pence on Thursday morning in London.
UBS Group AG cut its stake in Costain on Tuesday to none reported from 5.10% previously.
Panmure Liberum, Cavendish Research and Peel Hunt have maintained 'buy' ratings for Costain.
Cavendish Research sees Costain's current share price "as undervaluing the quality and visibility of the secured order book and a balance sheet that supports both attractive shareholder returns and continued investment flexibility."
Peel Hunt backed its forecasts for Costain's 2026 revenue and pretax profit, which the broker expects to reach GBP1.2 billion and GBP55 million respectively. This compares to revenue of GBP1.05 billion and pretax profit of GBP48.2 million in 2025.
By Holly Munks, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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Costain says trading as expected, eyes acceleration in second half
Idag, 11:34
(Alliance News) - Costain Group PLC on Thursday said it was trading as expected so far in 2026, with full-year earnings weighted to the second half.
The Maidenhead, England-based construction and engineering company is eyeing growth in revenue and adjusted operating profit in 2026, alongside an adjusted operating profit margin of 4.0%.
In 2025, revenue was GBP1.05 billion and adjusted operating profit GBP47.1 million, for a margin of 4.3%.
"The group is making good progress towards the expected step change in financial performance in FY27 and beyond. Contract mobilisations and increased activity levels, reflecting an acceleration in customers' investment spending plans, are expected to build during the second half of FY26. As a result, and as previously indicated, FY 26 revenue and adjusted operating profit is expected to be second half weighted," Costain explained on Thursday.
It is targeting a net cash position of GBP175 million at the end of 2026, "after the partial unwind of historic working capital benefits", as well as a GBP20 million buyback scheme and plans to double cash dividends.
As of Wednesday, Costain had repurchased shares worth GBP4.0 million under the buyback scheme.
It has extended an undrawn GBP100 million revolving credit facility and GBP295 million bonding facilities by a year to September 2030.
Costain estimated that its forward work position is broadly consistent with the GBP7 billion figure reported at the end of 2025, and noted that "the pipeline of bidding opportunities remains strong across all sectors".
Approximately 51% of the GBP7 billion in forward work is with private and regulated customers, versus 30% two years ago. The allocation to central government customers has reduced to 31% from 64%, while the proportion of devolved government customers has risen to 17% from 6% two years prior.
Costain has secured work with fellow London listings National Grid PLC and Severn Trent PLC's water division, alongside other private and public UK customers.
The company is due to publish half-year results on August 13.
Its shares rose 2.2% to 201.00 pence on Thursday morning in London.
UBS Group AG cut its stake in Costain on Tuesday to none reported from 5.10% previously.
Panmure Liberum, Cavendish Research and Peel Hunt have maintained 'buy' ratings for Costain.
Cavendish Research sees Costain's current share price "as undervaluing the quality and visibility of the secured order book and a balance sheet that supports both attractive shareholder returns and continued investment flexibility."
Peel Hunt backed its forecasts for Costain's 2026 revenue and pretax profit, which the broker expects to reach GBP1.2 billion and GBP55 million respectively. This compares to revenue of GBP1.05 billion and pretax profit of GBP48.2 million in 2025.
By Holly Munks, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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