Costain Group (COST) H2 2025 earnings summary

Executive summary

• Delivered strong financial performance in FY2025, with profit and cash growth supported by a high-quality contract portfolio and predictable execution.

• Returned to the FTSE 250 in March 2026, reflecting consistent profit and cash growth over five years and improved market standing.

• Achieved a record forward work position of £7 billion, over 6x annual revenues, supporting growth and revenue visibility for FY2026 and FY2027.

Financial highlights

• FY2025 revenue was £1,045.7 million, down 16.4% year-over-year due to planned Transportation reductions, but profit was not impacted due to margin improvements.

• Adjusted operating profit grew by 9.3% to £47.1 million, with margin up 110bps to 4.5% year-over-year.

• Reported profit before tax increased 32.1% to £48.2 million.

• Net cash at year-end was £189.3 million, up £30.8 million from FY24, with a £100 million increase in gross cash during the period.

• Dividend per share increased 75% to £0.042; £10 million share buyback completed.

Outlook and guidance

• Expect continued revenue and profit growth in FY2026, with a step change in FY2027 and beyond.

• Approximately 90% of FY2026 forecast revenue already secured; strong pipeline and high win rates support future growth.

• Guidance for operating margins around 4% in FY2026 and FY2027, with ambition to exceed 5% as portfolio and operating leverage improve.

• FY2026 year-end net cash expected to be approximately £175 million after a £20 million share buyback.

• Implementing a dividend cover of 3x adjusted earnings.