Strong H1 performance; FY 26 expectations unchanged
On track to deliver step change in performance in FY 27 and beyond
Costain Group plc, the UK infrastructure solutions company, announces its interim results for the six months ended 30 June 2026 ("H1 26").
Continued strong performance reflecting the quality, resilience and balance of contract portfolio
- Revenue up 3.4% to £543.1m (H1 25: £525.4m), marking a key inflection point as we commence a step change in revenue followed by a sustained period of growth.
- Adjusted operating profit up 3.0% to £17.3m (H1 25: £16.8m), adjusted operating margin maintained at 3.2% (H1 25: 3.2%). Reported operating profit up 5.5% to £17.3m (H1 25: £16.4m), with no adjusting items in the period (H1 25: £0.4m).
- Adjusted EPS p 3.6% to 5.7p (H1 25: 5.5p). Reported EPS up by 5.6% to 5.7p (H1 25: 5.4p).
Balance sheet strength and cash generation enabling significant increase in shareholder returns
- Net cash of £164.4m (H1 25: £144.9m, FY 25: £189.3m) after an £8.2m dividend payment (H1 25: £4.9m) and £7.6m deployed on the share buyback programme (38% of FY 26 programme).
- Interim dividend doubled to 2.0p (H1 25: 1.0p), reflecting the Group’s new target dividend cover of 2.5x adjusted earnings (previously 3x adjusted earnings).
Sustained market momentum and record forward work position underpins growth prospects
- New customers won in key target segments in H1 26 (including electricity transmission, reservoirs, and devolved authority rail), further enhancing portfolio quality and resilience.
- Forward work position maintained at record £7.0bn (FY 25: £7.0bn, H1 25: £5.6bn), up 67% over six years and providing visibility of 91% of both FY 26 and FY 27 consensus forecast revenues*.
- Expect revenue growth in H2 26 compared with H1 26, driven by Water, as the industry transitions from design to construction phase in AMP8, the expansion of our work at Heathrow, and as our M60 Road project moves into its construction phase.
"I’m pleased to report another strong performance in the first half of 2026, putting us on track to deliver FY 26 revenue, operating profit and margin in line with the Board’s expectations and a sixth consecutive year of profit growth. Our first half performance, with revenue growth and further growth in operating profit, and our robust balance sheet, has supported a significant year-on-year increase in shareholder returns.
Alex Vaughan Chief Executive Officer, Costain
“Our forward work is maintained at the record £7.0bn FY 25 position, with new long-term customer partnerships and breakthroughs into key target segments such as the ‘Great Grid Upgrade’ and new reservoirs. Costain is now at a key inflection point where the strength of our growing, resilient end markets, strategic positioning with our customers and high-quality forward work position is set to deliver growth in H2 26 and a step change in our financial performance in FY 27 and beyond."
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