Costain Group (LON:COST – Get Free Report) announced its earnings results on Thursday. The company reported GBX 5.70 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Costain Group had a net margin of 3.57% and a return on equity of 14.87%.
Here are the key takeaways from Costain Group’s conference call:
- Revenue rose 3.4% to just over £0.5 billion and adjusted operating profit increased 3% to £17.3 million, while the 3.2% operating margin was maintained. Management reiterated that 2026 remains on track and expects a step-change in growth during 2027.
- Costain maintained its record £7 billion forward work position, with 91% of consensus revenue secured for both 2026 and 2027. New customers and market entries—including National Grid, Gatwick Airport, Dover Port, electricity transmission and reservoir programs—are broadening the portfolio.
- The company reported net cash of £164.4 million and expects approximately £170 million at year-end, despite higher shareholder distributions. It plans roughly £34 million of shareholder returns in 2026 through a doubled interim dividend and a £20 million share buyback.
- Adjusted free cash flow was a £1.4 million outflow in the first half because of working-capital timing, while lease spending increased as Costain invested ahead of planned growth. Transportation revenue also declined as several framework projects completed, although management expects recovery in the second half.
- Growth is expected to accelerate as water, roads, aviation, nuclear and energy-transmission projects move from design into construction. Management believes this staged delivery model will reduce execution risk and support its ambition to achieve margins above 5%, but the current margin remains 3.2%.
Costain Group Stock Up 4.8%
COST traded up GBX 10.50 during midday trading on Thursday, hitting GBX 230. 11,829,990 shares of the company’s stock traded hands, compared to its average volume of 2,341,547. The company has a debt-to-equity ratio of 9.68, a current ratio of 1.44 and a quick ratio of 1.32. The company has a market cap of £608.79 million, a PE ratio of 16.79, a price-to-earnings-growth ratio of 1.63 and a beta of 0.88. The stock’s fifty day simple moving average is GBX 208.68 and its 200-day simple moving average is GBX 195.25. Costain Group has a one year low of GBX 124.40 and a one year high of GBX 237.80.
Analyst Ratings Changes
Check Out Our Latest Stock Analysis on Costain Group
Insiders Place Their Bets
In other Costain Group news, insider Amanda Fisher purchased 1,953 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The shares were acquired at an average price of GBX 204 per share, for a total transaction of £3,984.12. Also, insider Alex Vaughan sold 415,015 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of GBX 206, for a total transaction of £854,930.90. Insiders own 49.10% of the company’s stock.
About Costain Group
Costain improves people’s lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. Through the delivery of predictable, best-in-class solutions across the transport, water, energy and defence markets, we are creating a sustainable future and securing a more prosperous, resilient and decarbonised UK.
By bringing together our unique mix of construction, consultancy, engineering and digital services, we work strategically with our customers and suppliers to meet critical national needs.
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