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Costain wins £45m Severn Trent contract for Rugby sewage works upgrade

Story Highlights
  • Costain secured a £45m Severn Trent contract to upgrade Rugby Newbold sewage works, enhancing resilience and capacity.
  • The deal extends a partnership dating back to 2010, strengthening Costain’s role in regulated UK water infrastructure delivery.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Costain wins £45m Severn Trent contract for Rugby sewage works upgrade

Meet Samuel – Your Personal Investing Prophet

An update from Costain ( (GB:COST) ) is now available.

Costain has been awarded a contract worth about £45m by Severn Trent to deliver critical infrastructure upgrades at the Rugby Newbold Sewage Treatment Works, with the programme running until 2028. Acting as principal contractor and designer, Costain will design and build new facilities and upgrade systems to boost operational resilience and increase both feed and storm capacity at the site.

The award extends a relationship with Severn Trent that began in 2010 and has continued through successive UK water regulatory cycles up to at least 2030, reinforcing Costain’s position as a key delivery partner in the water sector. The contract underpins Costain’s strategy of providing predictable, best-in-class solutions in regulated infrastructure, supporting revenue visibility while contributing to the resilience of the UK’s water system for customers and stakeholders.

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 engineering and construction company focused on delivering connected, sustainable infrastructure across the transport, water, energy and defence markets. The business specialises in designing and building complex assets and systems that enhance resilience, efficiency and decarbonisation in critical national infrastructure, with a particular emphasis on long-term partnerships with major utility and public-sector clients.

Average Trading Volume: 1,411,554

Technical Sentiment Signal: Buy

Current Market Cap: £514.8M

See more insights into COST stock on TipRanks’ Stock Analysis page.

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