Costain Group (LON:COST) Releases Earnings Results

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

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 Stock Performance

Costain Group stock opened at GBX 199.40 on Thursday. The company has a current ratio of 1.41, a quick ratio of 1.32 and a debt-to-equity ratio of 9.57. The firm has a market cap of £531.83 million, a P/E ratio of 17.34, a P/E/G ratio of 1.63 and a beta of 0.96. Costain Group has a 1-year low of GBX 87.50 and a 1-year high of GBX 203.50. The firm has a 50-day moving average of GBX 176.39 and a 200-day moving average of GBX 156.34.

Key Costain Group News

Here are the key news stories impacting Costain Group this week:

• Positive Sentiment: Berenberg upgraded Costain to a “buy” and raised its price target from GBX 210 to GBX 240 — a clear analyst endorsement that can attract buying interest. Digital Look LSE Broker Ratings
• Positive Sentiment: Costain reports forward work/order book at a record ~£7bn, underpinning revenue visibility and supporting medium-term growth expectations. Order Book Article
• Positive Sentiment: The board announced a GBP20m buyback and increased shareholder payout after a strong year — this reduces share count, signals confidence in cash generation, and is typically supportive for the share price. Buyback Article
• Positive Sentiment: Latest results: Costain reported GBX 14.50 EPS for the quarter with ROE ~13.1% and net margin ~2.8%; management materials and the earnings call/slide deck provide detail on margins and backlog conversion. These fundamentals, together with the other items, help explain recent buying. Earnings Call Transcript Slide Deck

Wall Street Analyst Weigh In

Separately, Berenberg Bank upped their price objective on shares of Costain Group from GBX 210 to GBX 240 and gave the company a “buy” rating in a research note on Wednesday. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Costain Group has an average rating of “Moderate Buy” and an average price target of GBX 190.

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.