Strong project wins keep Costain on track for improved performance

New contract wins and ongoing project momentum are helping Costain maintain steady growth and push toward stronger results.

In its latest trading update, the infrastructure giant said trading is in line with expectations, with revenue and profits continuing to grow.

Adjusted operating margin is set to reach around four per cent, reflecting solid performance across its key markets – transport, water, energy and defence.

Momentum is building for a “step change” in results, supported by new contracts and rising customer investment.

Activity is expected to be weighted toward the second half of the year.

Costain‘s major project wins span private, regulated, and government sectors, including Gatwick Airport, Thames Water, National Grid, and National Highways, and have kept its order book around a record £7 billion.

Of its order book, 51 per cent is with private and regulated customers, up 21 per cent; 31 per cent with central government customers, down by more than half; and 17 per cent with devolved government customers, up 11 per cent – all compared with two years ago.

It also looks to target opportunities created from the likes of United Utilities, which is extending its AMP9 contract and increasing its AMP8 capital programme to £11.5 billion.

It continues to anticipate FY2026 year-end net cash to be around £175 million, and has bought back 2.1 million shares, about £4 million, as part of its £20 million share buyback programme.

The group said its chosen markets “continue to demonstrate highly attractive growth opportunities”, and that expanding and diversifying its customer base has significantly grown forward work with private and regulated customers.

For the year ended 31 December 2025, operating profit rose 44.1 per cent to £44.8 million, underpinned by revenue of more than £1 billion, with Natural Resources offsetting a decline in Transportation activity.

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