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Costain Group (COST) investor relations material

Costain Group H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary20 Aug, 2025

Executive summary

  • Operating profit and margins increased in H1 2025, with adjusted operating profit up 3.1% to £16.8m and margin rising to 3.2%, driven by strong Natural Resources performance offsetting Transportation declines.

  • Revenue was £525.4m, down 17.8% year-over-year due to lower Transportation revenue, while Natural Resources grew.

  • Forward work position reached £5.6bn, over four times last year's revenue, with 90% of FY 25 forecast revenue secured, providing high visibility for future growth.

  • Net cash remains robust at £144.9m, with year-end guidance of £170m and enhanced shareholder returns via increased dividend and £10m share buyback.

  • Confident in meeting FY 2025 profit consensus of £46m and margin above 4%, with strong balance sheet and market outlook.

Financial highlights

  • Adjusted operating profit rose 3.1% to £16.8m; reported operating profit up 18% to £16.4m.

  • Adjusted operating margin improved by 70bps to 3.2% year-over-year.

  • Adjusted EPS was 5.5p (down 1.7%); reported EPS up 8% to 5.4p.

  • Interim dividend increased 150% to 1.0p per share.

  • Net cash at period end £144.9m; average month-end net cash £149.4m; adjusted free cash outflow £3.0m.

Outlook and guidance

  • On track to deliver 4.5% adjusted operating margin run rate in FY 2025, targeting margins above 5% in the medium term.

  • FY 2025 operating profit consensus at £46m, with margin expected to exceed 4%.

  • 90% of forecast revenue for FY 25 already secured; high bidding activity continues.

  • Step-change in revenue, profit, and margin growth anticipated for FY 2027 and beyond, underpinned by high-quality contract portfolio and strong forward work.

  • High confidence in delivering progress for FY 2025 and FY 2026.

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Frequently asked questions

Costain Group PLC is a UK-based infrastructure solutions company specializing in the design, delivery, and maintenance of complex projects across the transportation, water, energy, and defense sectors. The company offers a range of services, including engineering consultancy, project management, and digital solutions to enhance operational efficiency and sustainability. The company is headquartered in Maidenhead, England, and its shares are listed on the London Stock Exchange (LSE).

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