Costain Group (LON:COST) Issues Earnings Results

Costain Group (LON:COST) released its quarterly earnings data on Tuesday. The company reported GBX 14.50 earnings per share for the quarter, Digital Look Earnings reports. Costain Group had a net margin of 2.75% and a return on equity of 13.06%.

Here are the key takeaways from Costain Group’s conference call:

• Adjusted operating profit
• Record forward work of GBP 7 billion (up 30% y/y), with ~90% of FY‑2026 forecast revenue secured and a broader customer mix across nuclear, water, energy and aviation, underpinning expected growth and a “step change” in 2027.
• Board increased shareholder returns — higher FY‑2025 dividend and a new GBP 20 million share buyback for 2026 — enabled by strong cash generation and a favourable triennial pension outcome that removes near‑term cash contributions.
• Group revenue fell ~16% to GBP 1.0bn due to contract completions and client rephasing (notably historic RDP road projects, HS2 timing and AMP transitions), and central costs rose, presenting a short‑term volume headwind despite margin gains and management’s confidence in 2026–27 recovery.

Costain Group Trading Up 13.3%

Shares of Costain Group stock opened at GBX 192.60 on Tuesday. The firm’s 50-day moving average price is GBX 174.71 and its two-hundred day moving average price is GBX 155.53. The company has a market capitalization of £513.69 million, a price-to-earnings ratio of 16.75, a PEG ratio of 1.63 and a beta of 0.96. The company has a quick ratio of 1.32, a current ratio of 1.41 and a debt-to-equity ratio of 9.57. Costain Group has a 12-month low of GBX 87.50 and a 12-month high of GBX 195.

Insider Activity at Costain Group

In related news, insider Fiona MacAulay purchased 6,347 shares of Costain Group stock in a transaction dated Wednesday, December 10th. The shares were bought at an average cost of GBX 157 per share, for a total transaction of £9,964.79. Company insiders own 47.97% of the company’s stock.

Analysts Set New Price Targets

Separately, Berenberg Bank boosted their price objective on shares of Costain Group from GBX 190 to GBX 210 and gave the stock a “buy” rating in a research report on Monday, January 26th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of GBX 180.

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.