Costain Group (COST) H1 2026 earnings summary

Executive summary

• Achieved strong H1 2026 performance with revenue up 3.4% to £543.1m year-over-year, supporting a sixth consecutive year of profit growth and increased shareholder returns.

• Maintained a record forward work position of £7.0bn, representing over six times annual revenue and providing 91% visibility on FY26 and FY27 revenues.

• Interim dividend doubled to 2.0p per share, with a new target dividend cover of 2.5x adjusted earnings and a £20m share buyback programme underway.

• Secured new contracts and entered new market segments, including Dover Port, Gatwick Airport, National Grid, and electricity transmission.

• On track for a step change in growth in FY27, with further growth expected in H2 26 and beyond.

Financial highlights

• H1 26 revenue: £543.1m (up 3.4% YoY); adjusted operating profit: £17.3m (up 3.0% YoY); adjusted operating margin stable at 3.2%.

• Adjusted basic EPS: 5.7p (up 3.6% YoY); interim dividend: 2.0p (up 100%).

• Net cash at period end: £164.4m (up £19.5m YoY); average weekend/month-end net cash: £177.3m/£176.0m.

• Adjusted free cash outflow improved to £1.4m (from £3.0m outflow YoY).

• Shareholder returns doubled to £15.4m in H1, including £8.2m in dividends and £7.6m in buybacks.

Outlook and guidance

• FY26 trading in line with expectations; step change in FY27 and continued growth beyond.

• FY26 adjusted operating margin expected around 4.0%, with medium-term ambition to exceed 5%.

• Year-end net cash expected to be c. £170m after enhanced shareholder returns.

• 91% of consensus revenues for 2026 and 2027 already secured, providing strong profit visibility.