Costain Group (COST) H1 2026 earnings summary

Executive summary

• H1 revenue rose 3.4% to £543.1m and adjusted operating profit increased 3.0% to £17.3m, supporting a sixth consecutive year of profit growth.

• Record £7.0bn forward work, over 6x FY25 revenue and up 25% year over year, provides 91% revenue visibility for FY26 and FY27.

• H1 marked a revenue inflection point, with further growth expected in H2 and a step change anticipated in FY27 and beyond.

• Interim dividend doubled to 2.0p per share, and the £20m share buyback programme is underway.

Financial highlights

• Revenue was £543.1m, up 3.4% YoY; adjusted operating profit was £17.3m, up 3.0%, with adjusted operating margin steady at 3.2%.

• Adjusted basic EPS increased 3.6% to 5.7p; interim dividend rose 100% to 2.0p per share.

• Closing net cash was £164.4m, up £19.5m YoY.

• Adjusted free cash outflow was £1.4m, compared with £3.0m in H1 2025.

• Reported profit before tax was £19.2m, up 5.5% YoY.

Outlook and guidance

• FY26 trading remains in line with expectations; H2 revenue growth is anticipated, followed by a step change in FY27 and continued growth beyond.

• H2 growth is expected from Water, Integrated Transport and Road as work moves into delivery.

• FY26 adjusted operating margin is expected to be ~4.0%; the medium-term ambition is to exceed 5%.

• Year-end net cash is forecast at ~£170m after dividends, the £20m buyback and employee share awards.