Costain on track to deliver ‘step change’ in performance after strong H1.


Infrastructure solutions firm Costain said on Thursday that it was on track to deliver a "step change" in performance as it posted a rise in first-half profit and revenue as growth in the natural resources segment helped to offset a weaker performance from the transport arm.

  • Costain Group
  • 13 August 2026 09:39:03
Costain Group

Source: Sharecast

In the six months to 30 June, adjusted pre-tax profit increased 3.2% to £19.2m, while revenue ticked up 3.4% to £543.1m. Adjusted operating profit was 3% higher at £17.3m and the dividend per share was doubled to 2p.

Costain's forward work position was maintained at a record £7bn, up 67% over six years and providing visibility of 91% of both FY 26 and FY 27 consensus forecast revenues.

In the transportation segment, revenue dipped 3.2% to £306m, as expected. Costain said the expansion of its work at Heathrow drove growth in integrated transport revenue, while rail revenue was stable as its work on the HS2 Euston tunnels progressed. This was offset by a reduction in road revenue given the prior year period included the completion of several historic Regional Delivery Partnerships (RDP) framework projects.

In the natural resources business, revenue rose 13.3% to £237.1m, with increases across all three sectors of water, energy, and defence and nuclear energy.

Chief executive Alex Vaughan said: "I'm pleased to report another strong performance in the first half of 2026, putting us on track to deliver FY 26 revenue, operating profit and margin in line with the board's expectations and a sixth consecutive year of profit growth. Our first half performance, with revenue growth and further growth in operating profit, and our robust balance sheet, has supported a significant year-on-year increase in shareholder returns.

"Costain is now at a key inflection point where the strength of our growing, resilient end markets, strategic positioning with our customers and high-quality forward work position is set to deliver growth in H2 26 and a step change in our financial performance in FY 27 and beyond."

At 0935 BST, the shares were up 4.3% at 228.96p.

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