Costain Group (COST) Trading update summary

Trading and financial performance

• Trading remains in line with expectations, with revenue and adjusted operating profit growth anticipated for FY26 and an industry-leading adjusted operating margin of around 4.0%.

• Financial performance is expected to improve further in FY27, with second half of FY26 weighted for revenue and profit due to increased contract mobilisations and customer investment.

• Net cash position for FY26 is projected at approximately £175m, factoring in a £20m share buyback and higher dividend payments.

• The revolving credit facility and bonding facilities have been extended to September 2030, with the RCF remaining undrawn.

Market momentum and contract wins

• Strong growth opportunities in chosen markets, supported by major customer investment plans such as United Utilities' £2.5bn increase and the Department for Transport's £27bn Road Investment Strategy 3.

• Forward work position at FY25 year end was £7bn, with 51% from private and regulated customers, 31% from central government, and 17% from devolved government.

• Recent wins include frameworks and contracts with London Gatwick Airport, Severn Trent Water, Thames Water, Port of Dover, Manchester Airports Group, and National Grid.

• Additional wins with devolved and central government customers, such as Procure Partnerships, National Highways, and the Government Commercial Agency.

• The pipeline of bidding opportunities remains strong across all sectors.