COSTAIN GROUP PLC - Half Year Results

Costain Group PLC reported a strong financial performance for the first half of 2026, with revenue growth, increased operating profit, continued strong cash generation and industry-leading margins. The Group maintained a record £7 billion forward work position, representing more than six times annual revenue, supported by favourable market conditions across transportation, water, energy, defence and nuclear energy. Management highlighted a disciplined approach to contract selection and risk, with the order book secured on appropriate commercial terms and without fixed-price lump-sum exposure. Costain expects increased growth in the second half of 2026, with 91% visibility of planned work, followed by a step change in growth and profits in 2027. The Group anticipates a full-year operating margin of around 4%, while retaining its longer-term ambition to achieve margins above 5% through portfolio improvement, revenue growth and operating leverage. Costain is also expanding its consultancy, engineering and design capabilities, alongside investment in digitalisation, automation and AI. Reflecting confidence in the company’s performance, growth strategy and financial outlook, Costain has doubled its interim dividend by moving from three-times to 2.5-times dividend cover, while its share buyback programme continues to progress.