Costain Group (LON:COST) Announces Earnings Results

Costain Group (LON:COST) announced its 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 14.87% 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 Price Performance

Shares of COST stock traded up GBX 10.50 during trading hours on Thursday, reaching GBX 230. The company had a trading volume of 11,829,990 shares, compared to its average volume of 2,341,547. Costain Group has a 12-month low of GBX 124.40 and a 12-month high of GBX 237.80. The company has a debt-to-equity ratio of 9.68, a quick ratio of 1.32 and a current ratio of 1.44. The company has a market capitalization of £608.79 million, a price-to-earnings ratio of 16.79, a PEG ratio of 1.63 and a beta of 0.88. The stock has a fifty day moving average of GBX 208.68 and a 200-day moving average of GBX 195.25.

Insiders Place Their Bets

In other news, insider Helen Willis sold 344,645 shares of Costain Group stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of GBX 201, for a total transaction of £692,736.45. Also, insider Amanda Fisher purchased 1,953 shares of Costain Group stock in a transaction dated Tuesday, June 23rd. The shares were bought at an average price of GBX 204 per share, for a total transaction of £3,984.12. 49.10% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Separately, Berenberg Bank reissued a “buy” rating and issued a GBX 240 price objective on shares of Costain Group in a research note on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of GBX 190.

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.