Costain Group (LON:COST) Issues Quarterly Earnings Results

Costain Group (LON:COST) announced its quarterly earnings results on Thursday. The company reported GBX 5.70 earnings per share for the quarter, Digital Look Earnings reports. Costain Group had a net margin of 3.57% and a return on equity of 14.87%.

Here are the key takeaways from Costain Group’s conference call:

• Revenue rose 3.4% to just over £0.5 billion and adjusted operating profit increased 3% to £17.3 million, while the 3.2% operating margin was maintained. Management reiterated that 2026 remains on track and expects a step-change in growth during 2027.
• Costain maintained its record £7 billion forward work position, with 91% of consensus revenue secured for both 2026 and 2027. New customers and market entries—including National Grid, Gatwick Airport, Dover Port, electricity transmission and reservoir programs—are broadening the portfolio.
• The company reported net cash of £164.4 million and expects approximately £170 million at year-end, despite higher shareholder distributions. It plans roughly £34 million of shareholder returns in 2026 through a doubled interim dividend and a £20 million share buyback.
• Adjusted free cash flow was a £1.4 million outflow in the first half because of working-capital timing, while lease spending increased as Costain invested ahead of planned growth. Transportation revenue also declined as several framework projects completed, although management expects recovery in the second half.
• Growth is expected to accelerate as water, roads, aviation, nuclear and energy-transmission projects move from design into construction. Management believes this staged delivery model will reduce execution risk and support its ambition to achieve margins above 5%, but the current margin remains 3.2%.

Costain Group Stock Performance

Shares of COST stock opened at GBX 237 on Friday. Costain Group has a 52 week low of GBX 124.40 and a 52 week high of GBX 240. The firm has a 50 day moving average of GBX 209.38 and a two-hundred day moving average of GBX 195.73. The company has a quick ratio of 1.32, a current ratio of 1.44 and a debt-to-equity ratio of 9.68. The stock has a market capitalization of £627.32 million, a PE ratio of 17.30, a P/E/G ratio of 1.63 and a beta of 0.88.

Wall Street Analyst Weigh In

Separately, Berenberg Bank upped their price target on Costain Group from GBX 240 to GBX 275 and gave the company a “buy” rating in a research note on Friday. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of GBX 201.67.

Insider Buying and Selling

In related news, insider Helen Willis sold 344,645 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of GBX 201, for a total transaction of £692,736.45. Also, insider Alex Vaughan sold 415,015 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of GBX 206, for a total transaction of £854,930.90. 49.10% of the stock is currently owned by insiders.

Costain Group Company Profile

Costain improves people’s lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. Through the delivery of predictable, best-in-class solutions across the transport, water, energy and defence markets, we are creating a sustainable future and securing a more prosperous, resilient and decarbonised UK.

By bringing together our unique mix of construction, consultancy, engineering and digital services, we work strategically with our customers and suppliers to meet critical national needs.