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Costain
(LSE:COST)
Costain (COST) vs. iShares MSCI United Kingdom ETF (EWC)
Costain Business Overview & Revenue Model
Costain Financial Statement Overview
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.05B | 1.25B | 1.33B | 1.42B | 1.14B |
| Gross Profit | 112.70M | 103.30M | 103.50M | 82.20M | 39.10M |
| EBITDA | 60.00M | 52.60M | 50.90M | 47.20M | 4.60M |
| Net Income | 37.30M | 30.60M | 22.10M | 25.90M | -5.80M |
Balance Sheet | |||||
| Total Assets | 561.90M | 547.20M | 468.60M | 482.20M | 532.40M |
| Cash, Cash Equivalents and Short-Term Investments | 215.30M | 158.50M | 164.40M | 123.80M | 159.40M |
| Total Debt | 25.00M | 25.80M | 24.30M | 29.50M | 66.20M |
| Total Liabilities | 303.70M | 311.50M | 249.20M | 271.00M | 333.40M |
| Stockholders Equity | 258.20M | 235.70M | 219.40M | 211.20M | 199.00M |
Cash Flow | |||||
| Free Cash Flow | 49.90M | 37.20M | 55.60M | 13.60M | 27.30M |
| Operating Cash Flow | 51.30M | 42.70M | 55.70M | 14.10M | 29.50M |
| Investing Cash Flow | -2.80M | -9.00M | -100.00K | -1.30M | -2.20M |
| Financing Cash Flow | -30.10M | -25.60M | -15.00M | -48.40M | -18.80M |
Costain Technical Analysis
Costain Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £1.36B | 8.23 | 23.46% | 3.08% | -1.17% | 12.31% | |
78 Outperform | £486.73M | 11.49 | 13.06% | 1.88% | -12.98% | 5.51% | |
73 Outperform | £1.98B | 12.50 | 24.53% | 2.49% | 6.93% | 21.50% | |
72 Outperform | £501.42M | 7.10 | 27.48% | 3.65% | 5.78% | -6.80% | |
71 Outperform | £3.55B | 13.49 | 16.34% | 1.80% | 9.97% | -15.46% | |
71 Outperform | £866.35M | 9.81 | 11.69% | 3.19% | 4.40% | 31.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
Costain Corporate Events
Costain Group has launched an on-market share buyback of up to £20m, following a recent overhaul of its pension arrangements that removed constraints on shareholder distributions. The board says the programme is a value-enhancing use of surplus cash that preserves financial flexibility to invest in its growth strategy while leaving the existing dividend policy unchanged.
The buyback, to be executed in two £10m tranches by Panmure Liberum and Investec acting as riskless principals, could see the company repurchase up to 20,481,508 shares for cancellation, reducing its share capital from the current 266,714,895 shares. The second tranche is expected to complete by the end of 2026 subject to market conditions, and the company cautions there is no guarantee the full amount will be deployed or that all authorised shares will be bought back.
Purchases will be made on the open market under the authority granted at the 2025 AGM and in line with UK listing and market abuse regulations, with transactions disclosed within seven market sessions. The move underscores Costain’s confidence in its cash generation and capital position, signalling a stronger focus on capital returns that could support the share price while maintaining funding capacity for its infrastructure-focused growth 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.
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.
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.
Costain Group PLC has announced that its Non-Executive Chair and Chair of the Nomination Committee, Kate Rock, has been appointed as an Independent Non-Executive Director at Chemring Group PLC, effective 1 April 2026. Upon joining the London-listed defence technology company, she will also serve as Senior Independent Director and sit on Chemring’s Audit, Nomination and Remuneration Committees, signalling an expanded governance role for Rock while she continues to lead Costain’s board.
The cross-board appointment underscores the growing demand for experienced non-executive leadership across UK-listed industrial and engineering groups, and may enhance Costain’s boardroom connectivity and insight into adjacent sectors such as defence and technology. For stakeholders, the move highlights the increasing emphasis on robust governance and committee oversight at both companies, though Costain has not indicated any changes to Rock’s responsibilities within its own leadership structure.
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.
Costain Group has rejoined the FTSE 250 index for the first time in more than two decades, reflecting sustained improvement in its financial performance. The company cites increased profitability, positive cash generation and a growing pipeline of high-quality work in its target markets as key drivers behind its renewed mid-cap status.
Management framed the index return as a validation of Costain’s long-term strategy and the execution capabilities of its workforce. The move is likely to enhance the group’s visibility among institutional investors and could support further shareholder returns ahead of its forthcoming full-year 2025 results.
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.
Costain has announced board changes involving non-executive director Fiona MacAulay, who also serves as chair of its remuneration committee and sits on its audit, risk and nomination committees. MacAulay has retired from the board of defence technology company Chemring Group after choosing not to seek re-election at its annual general meeting on 20 February 2026.
Costain also disclosed that, following the merger of Dowlais Group into U.S.-based Dauch Corporation, MacAulay has joined the combined group as an independent director. Her appointment to the dual London and New York-listed Dauch board under UK listing rules underscores her growing external governance profile while maintaining her non-executive responsibilities at Costain.
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.
Costain Group has scheduled an investor Q&A session to discuss its full-year 2025 results, to be hosted by chief executive Alex Vaughan and chief financial officer Helen Willis via the Investor Meet Company platform on 11 March 2026. The event, open to existing and potential shareholders, allows questions to be submitted in advance or during the live presentation, underscoring Costain’s efforts to enhance transparency and engagement with the investment community as it prepares to publish its 2025 results on 10 March 2026.
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.
Costain Group has secured a contract worth about £100m over five years to design and build a new M5 motorway junction, 22A, in Somerset, awarded through the Regional Delivery Partnership framework. The junction will provide access to the Gravity Smart Campus and Agratas’s planned £4bn gigafactory, set to be Britain’s largest electric vehicle battery manufacturing facility, positioning Costain as delivery integration partner and main works contractor responsible for design, engineering, programme delivery and supply chain management, and underlining its role in critical national infrastructure that supports regional economic growth and the UK’s clean-energy industrial ambitions.
The most recent analyst rating on (GB:COST) stock is a Buy with a £197.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.
Costain has reached a new agreement on its defined benefit pension scheme that removes a long‑standing dividend parity constraint and eliminates the need for further cash contributions until 2031, freeing up capital to enhance shareholder returns. In light of a strong balance sheet, surplus in the scheme and robust trading in FY 25, the board intends to move to a 3.0x dividend cover policy that would almost double cash dividends in FY 26 and to launch a £20m share buyback next year, while continuing to review the capital structure for potential additional returns. Operationally, FY 25 performance is expected to be in line with market profit expectations, with adjusted operating margins exceeding the 4.5% target and year-end net cash of £190m ahead of consensus, supported by timing benefits in working capital. The company has also secured a series of significant long-term contracts, including a utilities delivery partner role for Sellafield worth up to £1bn over 15 years and major nuclear and highways work, underpinning management’s confidence in further progress in FY 26 and a ‘step change’ in performance from FY 27 onwards.
The most recent analyst rating on (GB:COST) stock is a Buy with a £177.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.
Costain Group has scheduled a trading update for the year ending 31 December 2025 to be released on 26 January 2026, with full-year results to follow on 10 March 2026. The timetable underlines the company’s efforts to provide timely visibility on its financial performance to investors and other stakeholders as it pursues its strategy of delivering sustainable infrastructure solutions across key UK sectors.
The most recent analyst rating on (GB:COST) stock is a Buy with a £177.00 price target. To see the full list of analyst forecasts on Costain stock, see the GB:COST Stock Forecast page.