Record £7bn forward work, improved quality of earnings, strong markets underpin future growth
Continued strong performance reflecting the quality of our contract portfolio
- Revenue of £1,045.7m (FY 24: £1,251.1m), with growth in Natural Resources offset by the previously announced reduction in Transportation.
- Adjusted operating profit up 9.3% to £47.1m (FY 24: £43.1m).
- Further margin improvement, with adjusted operating margin1 up 110bps to 4.5% (FY 24: 3.4%).
- Reported operating profit up 44.1% to £44.8m (FY 24: £31.1m), principally reflecting a reduction in adjusting items.
- Adjusted EPS of 14.5p (FY 24: 14.6p), principally reflecting increased adjusted operating profit offset by a higher adjusted effective tax rate. Reported EPS up by 23.0% to 13.9p (FY 24: 11.3p).
Financial strength and cash generation enabling increased shareholder returns
- Strong balance sheet with net cash of £189.3m (FY 24: £158.5m), reflecting significant growth in adjusted free cash flow to £63.1m (FY 24: £27.1m) and the £10m share buyback programme in FY 25.
- Removal of dividend parity arrangement will lead to an increase in the FY 25 final dividend to 3.2p (FY 24: 2.0p) and the launch of a £20m share buyback programme in FY 26.
Strong market momentum and increased forward work position underpins growth prospects
- Forward work position up 30% to a record £7.0bn (FY 24: £5.4bn), with contract awards and extensions across all sectors, underpinning our confidence in a step change in performance in FY 27 and beyond.
- Substantial growth opportunities across all target markets outlined in the government’s 10-year Infrastructure Strategy, including regulatory commitments in water, energy and aviation.
Please click here for the full announcement and here for the results presentation.
"I am pleased to report another strong performance, with 9% adjusted operating profit growth and a 4.5% adjusted operating margin. Strong cash generation has resulted in a strengthened balance sheet and supports increased shareholder returns, with confirmation that we will proceed with a £20m share buyback programme in FY 26 and implement our target dividend cover of 3x adjusted earnings. As we return to the FTSE 250, thank you to everyone in the Costain team for their valued support.
Alex Vaughan Chief Executive Officer
“The Group is strongly positioned in structurally growing markets where significant long-term investment is being made to meet critical national needs, and where we work in long-term collaborative partnerships with an increasing number of customers. Our forward work position has grown by 30% to a record £7.0bn, almost seven times FY 25 revenue, giving good visibility of future work and, combined with our strong balance sheet, underpins our confidence in delivering revenue and operating profit growth in FY 26 and a step change in performance in FY 27 and beyond.”
ENDS