Business
Half-year Report
Costain Group PLC reported H1 2025 results showing a revenue decrease to £525.4m (H1 24: £639.3m), primarily due to Transportation segment reductions from project completions and HS2 rescheduling, offset by Natural Resources growth. Despite lower revenue, adjusted operating profit increased by 3.1% to £16.8m (H1 24: £16.3m), resulting in a 70bps rise in adjusted operating margin to 3.2% (H1 24: 2.5%). Reported operating profit rose by 18% to £16.4m (H1 24: £13.9m). Adjusted EPS was 5.5p (H1 24: 5.6p), while reported EPS reached 5.4p (H1 24: 5.0p). The company's forward work position increased to £5.6bn (H1 24: £4.3bn), exceeding four times FY 24 revenue. Net cash stood at £144.9m (H1 24: £166.0m), with year-end net cash projected around £170m. The interim dividend significantly increased to 1.0p (H1 24: 0.4p), alongside a new £10m share buyback programme. The company remains confident in achieving its FY 25 adjusted operating margin run-rate target of 4.5%. Disclaimer*
About this update from Costain Group Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INFORMATION WITHIN THE MEANING OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF\nTHE EUROPEAN UNION (WITHDRAWAL) ACT 2018\n \n20 AUGUST 2025 \nCOSTAIN GROUP PLC\n(\"Costain\", the \"Group\", or the \"Company\")\nRESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025 (\"H1 25\")\n\n\n\n\nIncreased operating profit, margin and forward work underpins confidence in FY 25 expectations\n\n\n\n\n \n· Revenue of £525.4m (H1 24: £639.3m), with growth in Natural Resources offset by a reduction in Transportation from expected Road project completions and a rephased schedule from HS2.\n· Quality of contracts and strong execution drives 3.1% increase in adjusted operating profit1 to £16.8m (H1 24: £16.3m) and a 70bps rise in adjusted operating margin1 to 3.2% (H1 24: 2.5%).\n· Confident in delivery of adjusted operating margin run-rate target of 4.5% during FY 25.\n· Reported operating profit increase of 18% to £16.4m (H1 24: £13.9m), reflecting a reduction in adjusting items following the completion of the Transformation programme.\n· Adjusted EPS of 5.5p (H1 24: 5.6p), with adjusted operating profit increase offset by lower net finance income. Reported EPS of 5.4p (H1 24: 5.0p).\n· Increased high quality forward work2 position of £5.6bn (FY 24: £5.4bn, H1 24: £4.3bn), more than four times FY 24 revenue, and bidding activity levels remain high.\n· Strong balance sheet, with net cash of £144.9m (FY 24: £158.5m, H1 24: £166.0m), year-end net cash expected to be around £170m.\n· Enhanced shareholder returns, with significant increase in interim dividend to 1.0p (H1 24: 0.4p) reflecting normalisation of H1:H2 dividend split and a further £10m share buyback programme launched in H1 25.\n· Improved quality of earnings, business resilience and market momentum drive confidence in delivery of FY 25 and medium-term expectations.\n \nFinancial summary\n\n\n\n\n(£m unless otherwise stated)\n\n\nH1 25\n\n\nH1 24\n\n\nChange\n\n\n...