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Costain ( (GB:COST) ) has issued an announcement.
Costain reported another year of profit growth despite lower revenue, with adjusted operating profit up 9.3% to £47.1m and margins improving to 4.5% as it exited lower-margin road contracts and benefited from strong performances in natural resources and integrated transport. Net cash rose to £189.3m on robust free cash flow, enabling a higher dividend and further share buybacks as the group returns to the FTSE 250.
The company’s forward work position climbed 30% to a record £7bn, nearly seven times annual revenue, driven by contract wins and extensions across all sectors, giving strong visibility on future workloads. Management said this pipeline, combined with growth opportunities from the UK’s 10-year infrastructure strategy in water, energy and aviation, underpins expectations for continued revenue and profit growth in 2026 and a step change in performance from 2027 onward.
The most recent analyst rating on (GB:COST) stock is a Buy with a £206.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.
Spark’s Take on GB:COST Stock
According to Spark, TipRanks’ AI Analyst, GB:COST is a Outperform.
Costain’s overall stock score reflects a strong financial foundation, positive technical indicators, and strategic corporate developments. The company’s stable financial performance and recent contract wins are significant strengths. However, modest profit margins and declining cash flow efficiency are areas for improvement. The valuation is fair, and the technical outlook is positive, supporting a favorable stock assessment.
To see Spark’s full report on GB:COST stock, click here.
More about Costain
Costain Group is a UK-based engineering and construction company focused on complex infrastructure across transportation, natural resources, energy, defence and water. It works mainly on long-term, large-scale projects for government and regulated customers, benefiting from multi-year investment cycles in national infrastructure and collaborative framework contracts.
Average Trading Volume: 1,385,648
Technical Sentiment Signal: Buy
Current Market Cap: £453.4M
Find detailed analytics on COST stock on TipRanks’ Stock Analysis page.