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Costain lifts profits and cash as record £7bn order book fuels shareholder payouts

Story Highlights
  • Costain grew profit and margins in 2025 despite lower revenue, supported by stronger contracts and cash.
  • A record £7bn order book and solid cash position are driving higher shareholder returns and future growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Costain lifts profits and cash as record £7bn order book fuels shareholder payouts

Meet Samuel – Your Personal Investing Prophet

Costain ( (GB:COST) ) has provided an announcement.

Costain reported a strong full-year 2025 performance, with adjusted operating profit up 9.3% to £47.1m and margins rising to 4.5%, despite a 16.4% revenue decline to £1,045.7m as legacy road contracts completed and HS2 work was rescheduled. Growth in natural resources, improved contract mix and lower adjusting items lifted reported operating profit by 44.1% and boosted earnings, while robust cash generation increased net cash to £189.3m.

The company’s forward work position surged 30% to a record £7bn, nearly seven times annual revenue, supported by contract wins and extensions across all sectors and growing activity at Heathrow. This strengthened backlog, combined with solid cash flow, underpins higher shareholder returns through a larger dividend and a £20m share buyback in 2026 and is expected to support revenue and profit growth, reinforcing Costain’s position as a key beneficiary of the UK’s long-term infrastructure spending plans.

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 infrastructure, operating across transportation and natural resources markets including roads, rail, water, energy, defence and aviation. It delivers complex projects and long-term programmes for government and regulated customers, positioning itself in markets underpinned by multi-year public and regulatory investment in critical national infrastructure.

Average Trading Volume: 1,385,648

Technical Sentiment Signal: Buy

Current Market Cap: £453.4M

For detailed information about COST stock, go to TipRanks’ Stock Analysis page.

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