Costain Group (LON:COST) Posts Earnings Results

Costain Group (LON:COST) released its quarterly earnings results on Thursday. The company reported GBX 5.70 EPS for the quarter, Digital Look Earnings reports. Costain Group had a return on equity of 14.73% and a net margin of 3.57%.

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 2.2%

Costain Group stock traded up GBX 5 during midday trading on Friday, reaching GBX 234.50. The company’s stock had a trading volume of 2,730,925 shares, compared to its average volume of 2,287,933. Costain Group has a 52-week low of GBX 124.40 and a 52-week high of GBX 240. The company has a debt-to-equity ratio of 12.61, a current ratio of 1.40 and a quick ratio of 1.32. The stock has a market capitalization of £620.70 million, a P/E ratio of 17.12, a PEG ratio of 1.63 and a beta of 0.88. The stock’s 50-day simple moving average is GBX 210.19 and its 200-day simple moving average is GBX 196.

Insider Transactions at Costain Group

In other news, insider Amanda Fisher bought 1,953 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were purchased at an average cost of GBX 204 per share, with a total value of £3,984.12. Also, insider Helen Willis sold 344,645 shares of Costain Group stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of GBX 201, for a total value of £692,736.45. Insiders own 49.10% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Berenberg Bank boosted their target price on shares of Costain Group from GBX 240 to GBX 275 and gave the stock a “buy” rating in a report on Friday. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of GBX 201.67.

Costain Group Company Profile

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.