Costain Group plc has announced its interim results for the six months ended 30 June 2026 (“H1 26”).
The infrastructure solutions company reports revenue up 3.4% to £543.1 million (H1 25: £525.4 million), marking a key inflection point as we commence a step change in revenue followed by a sustained period of growth, with adjusted operating profit up 3.0% to £17.3 million (H1 25: £16.8 million), adjusted operating margin maintained at 3.2% (H1 25: 3.2%). Reported operating profit up 5.5% to £17.3 million (H1 25:
£16.4 million), with no adjusting items in the period (H1 25: £0.4 million).
In terms of balance sheet strength and cash generation enabling significant increase in shareholder returns, Costain reports net cash of £164.4 million (H1 25: £144.9 million, FY 25: £189.3 million) after an
£8.2 million dividend payment (H1 25: £4.9 million) and £7.6 million 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).
As for sustained market momentum and record forward work position underpins growth prospects, the company says:
- New customers won in key target segments in H1 26, further enhancing portfolio quality and resilience.
- Forward work position maintained at record £7.0 billion (FY 25: £7.0 billion, H1 25: £5.6 billion), up 67% over six years and providing visibility of 91% of both FY 26 and FY 27 consensus forecast revenues*.
Alex Vaughan, Costain’s CEO (pictured), commented:
“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.
“Our forward work is maintained at the record £7 billion 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.”
(Picture: Costain)
