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Costain ( (GB:COST) ) has issued an update.
Costain said trading so far in 2026 is in line with expectations, with revenue and adjusted operating profit set to grow and an adjusted operating margin of about 4% for the year, weighted to the second half as contract mobilisations ramp up. The group remains strongly cash generative with an expected year-end net cash position of around £175m, an undrawn £100m revolving credit facility extended to 2030, and an ongoing £20m share buyback alongside higher dividend payouts.
Management highlighted good momentum in its chosen markets, underpinned by increased infrastructure spending such as United Utilities’ expanded AMP8 programme and the UK government’s £27bn road investment plan. Costain’s £7bn forward work is now more diversified, with over half from private and regulated customers, supported by a series of new framework and project wins across airports, water, energy and roads, which strengthen its pipeline and position it for a step change in performance from 2027.
The most recent analyst rating on (GB:COST) stock is a Hold with a £180.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.
Spark’s Take on COST Stock
According to Spark, TipRanks’ AI Analyst, COST is a Outperform.
The score is driven primarily by improved financial stability and earnings quality (higher margins, low leverage, solid cash conversion), supported by strong technical uptrend signals. Valuation is reasonable but not deeply compelling, and the key risk tempering the score is the multi-year revenue contraction, which could limit future growth if it persists.
To see Spark’s full report on COST stock, click here.
More about Costain
Costain Group is a UK-based infrastructure and engineering company focused on delivering complex, sustainable projects across the transport, water, energy and defence markets. The group provides design, consultancy and construction services aimed at creating connected infrastructure and supporting a more resilient and decarbonised UK economy.
Average Trading Volume: 1,617,457
Technical Sentiment Signal: Buy
Current Market Cap: £522.7M
See more data about COST stock on TipRanks’ Stock Analysis page.