Costain Group (COST) Trading Update summary

Trading performance and outlook

• Adjusted operating profit for FY24 expected to align with market expectations, with net cash also in line with consensus.

• Finished FY24 strongly, supported by growth in strategic markets and new Water and Rail awards in H2.

• Substantial increase in forward work position to £5.4bn at year-end, up from £3.9bn in FY23.

• Growth in consultancy services, including major EPCM and FEED contracts in energy transition projects.

• Broadened Tier 1 customer base and attractive bidding activity support confidence in future profit and margin growth.

Strategic initiatives and market positioning

• Expanded presence in Water and Rail sectors with significant contract wins.

• Secured engineering, procurement, and construction management (EPCM) award for bp joint ventures' Net Zero Teesside Power and Northern Endurance Partnership.

• Awarded a second hydrogen FEED contract, reinforcing consultancy growth.

• Focused on delivering sustainable, connected infrastructure across UK transport, energy, water, and defence markets.

• Organised around customer needs, integrating construction, consulting, and digital expertise.

Financial guidance and confidence

• Market expectations for FY24 adjusted operating profit are £41.9m–£43.3m; net cash consensus is £160.0m.

• Increased forward work position and strong bidding pipeline underpin confidence in future growth.

• Full year results to be announced on 11 March 2025.