Infrastructure consultant and contractor Costain has reported it has £75 billion worth of forward work as part of a strong financial performance as part of its end of year results up until 31st December 2025.
Costain said this represented ‘continued strong performance, reflecting the quality of our contract portfolio’. It reported revenues of £1,045.7m (FY 24: £1,251.1m), with growth in Natural Resources offset by the previously announced reduction in Transportation. The company’s adjusted operating profit was up 9.3% to£47.1 million, while its operating profit was up 44.1% to £44.8 million.
The company said its results showed financial strength and cash generation that has enabled increased shareholder returns.
It said it had a strong balance sheet with net cash of £189.3 million, reflecting significant growth in adjusted free cash flow to £63.1m (FY 24: £27.1m) and the £10m share buyback programme in FY 25.
This, said Costain, showed strong market momentum and increased forward work position underpins growth prospects. The company’s 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.
The company said there was ‘substantial growth opportunities’ across all of its target markets outlined in the Government’s 10-year Infrastructure Strategy.
Alex Vaughan, Chief Executive Officer at Costain said: “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.
“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.”
PIC-COSTAIN
