Costain Group Plc · LSE:COST
Costain — H1 2026 Earnings Presentation
35 slides from Costain's earnings presentation, Aug 12, 2026
Slide 1: Results presentation Half Year 2026
Results presentation M60? For the six months ended 30 June 2026 Together we shape, create, deliver Results presentation Half Year 2026
Slide 2: Introduction
REPLACE PHOTO Introduction Alex Vaughan Chief Executive Officer Together we shape, create, deliver Sellafield
Slide 3: Another strong performance in H1 2026
Another strong performance in H1 2026 • Strong financial performance • Revenue up 3%, key inflexion point • Further growth in operating profit with strong margins • Continuing to win high-quality work • Maintained record forward work at £7bn, over 6x FY25 revenue • Breakthroughs into key target segm
Slide 4: Continued profit and cash growth with industry-leading margin
Continued profit and cash growth with industry-leading margin On track for 6 years of sustainable profit growth and strengthening balance sheet Track record of strong financial performance Increasing shareholder returns and strengthening balance sheet Adjusted EBIT1 CAGR 11% Gross cash balance CAGR
Slide 5: Clear path to increase in revenue in H2 26 and beyond
Clear path to increase in revenue in H2 26 and beyond H2 revenue increase expected to be driven by secured programmes moving into construction phase Revenue drivers in H2 26 vs. H1 26 Key near-term growth drivers M60 into construction phase Expansion of work Road Road construction phase & other cont
Slide 6: Financial Review
REPLACE PHOTO Financial Review Helen Willis Chief Financial Officer Together we shape, create, deliver HS2
Slide 7: Headline financial results
Headline financial results Strong financial performance reflecting quality, diversity and balance of contract portfolio Financial Summary H1 26 H1 25 Change • Consistent 3-4% growth in revenue, adjusted £m £m % operating profit and adjusted EPS, reflecting Revenue 543.1 525.4 3.4% quality of deliver
Slide 8: Revenue inflection point reached
Revenue inflection point reached Revenue up, with expected small reduction in Transportation more than offset by strong growth across Natural Resources Revenue H1 26 vs H1 25 3.4% • Transportation: decrease of 3.2% £525.4m £18.0m £7.6m £2.2m £543.1m • Expected reduction in Road due to the completion
Slide 9: Adjusted operating profit growth in both divisions
Adjusted operating profit growth in both divisions Quality and balance of portfolio, predictable delivery Adjusted Operating Profit H1 26 vs H1 25 Adjusted operating margin(1) stable • Adjusted operating profit growth of 3.0% to £17.3m • Transportation adjusted operating profit up £0.4m 3.2% £0.4m £
Slide 10: Strong net cash position
Strong net cash position After significant shareholder returns £189.3m £1.8m £(3.0)m £(0.2)m £0.3m • Adjusted free cash outflow of £1.4m £(5.7)m (H1 25: £3.0m outflow) £(7.2)m £164.4m £(1.4)m £(8.2)m Adjusted free cash outflow(3) £15.4m £(2.7)m • £15.4m of total Shareholder returns Shareholder retur
Slide 11: Cash and banking facilities
Cash and banking facilities Strong balance sheet, maintained high average week-end net cash balance through H1 26 H1 26 FY 25 Week End Net Cash (£m) Cash and cash equivalents 164.4 189.3 200 Cash and cash equivalents - with restrictions 38.3 26.0 Cash and cash equivalents (including cash with 202.7
Slide 12: Increasing shareholder returns
Increasing shareholder returns Shareholder returns of £34m expected in FY 26, target dividend cover lowered to 2.5x Increasing shareholder returns • FY 26 shareholder returns set to reach c.£34m, double the level returned in FY 25, with c.£15m Based on returned in H1 26 (H1 25: c.£5m) target dividen
Slide 13: Predictable delivery
Predictable delivery Effective risk management underpins quality of contract portfolio Work winning Contract duration Contract Enhanced legal Senior Independent review Operational Financial Deep dive selection process management standards oversight risk review review The stringent assessment and man
Slide 14: High-quality record forward work position of £7bn
High-quality record forward work position of £7bn Maintained at over 6x FY 2025 revenues 8.0 7.0 £7.0bn £7.0bn • Forward work position increased 25% yoy £5.6bn • Forward work position built on long-term 6.0 3.4 3.5 5.0 2.2 programmes, normally of a duration of 5 4.0 years or more 3.0 2.0 3.4 3.6 3.5
Slide 15: High-quality record forward work position of £7bn
High-quality record forward work position of £7bn Diversification of customer base is enhancing resilience and balance of our portfolio FY23 HY26 • Contract portfolio transformed £3.9bn £7.0bn since FY 23 6% • Significant increase in Private and Regulated forward work 23% • 30% 48% Significant incre
Slide 16: High-quality forward work position of record £7bn
High-quality forward work position of record £7bn Long-term programmes of work, providing excellent visibility of future revenue 51% of £7bn forward work • Forward work position includes £1.9bn of £4bn revenue across FY 26 and FY 27 £3.4bn • 91% visibility of FY 26 consensus forecast revenue (£1.1bn
Slide 17: Outlook
Outlook Predictable delivery and growth driving rising shareholder returns • FY 26 trading in line with expectations, with step change in FY 27 followed by continued growth • FY 26 adjusted operating margin around 4.0%, medium-term ambition remains to exceed 5% • Dividend cover of 2.5x adjusted earn
Slide 18: Strategy & Outlook
Strategy & Outlook Alex Vaughan, Chief Executive Officer Together we shape, create, deliver Results presentation Half Year 2026 18
Slide 19: Our growth and value creation strategy
Our growth and value creation strategy Creating a sustainable future Purpose Improving people's lives Vision To create connected, sustainable infrastructure enabling people and the planet to thrive Sustainable A more prosperous UK A more resilient UK A decarbonised UK future Strategic Growth in stro
Slide 20: Significant growth in strategic infrastructure investment
Significant growth in strategic infrastructure investment Market Dynamics: Consistency – Continuity – Collaboration Committed Investment 2026 2027 2028 2029 2030 2031 2032 investment (1) period £27bn 2026 - 2031 Motorway and local road improvements (RIS3) National and local roads £2bn 2026 - 2031 Ma
Slide 21: Bringing our strategy to life – Water case study
Bringing our strategy to life – Water case study Long-term partnerships, deep expertise, whole life value across asset life cycle in growth market meeting critical national needs Significant long-term Major water A trusted partner to the years long-standing growth in investment UK Water sector 7 com
Slide 22: Transportation
Transportation Broadening customer and market mix, poised for growth Road • Two new major strategic national road projects commencing • Growing strategically important local / devolved authority roads presence Rail • HS2 Euston tunnels progressing, rail systems contracts in design stage • Breakthrou
Slide 23: Natural Resources
Natural Resources Well positioned in structurally growing markets Water • Long-term trusted partner to the major water companies in England • Well positioned for strategic reservoir opportunities Energy • Project manager for bp’s industrial-scale carbon capture programme and Cadent’s safety-critical
Slide 24: Summary
Summary Growth markets, record forward work & strong operational performance • Another strong financial performance in H1 • Revenue inflection reached with further profit growth • Increased shareholder returns • Forward work position maintained at record £7.0bn • On track to deliver growth in H2 26
Slide 25: Capital Markets Day 2026 Q&A
Capital Markets Day 2026 Afternoon of 19 November Q&A London Gallows Corner - TfL Results presentation Half Year 2026 25
Slide 26: Appendices
Appendices Together we shape, create, deliver Results presentation Half Year 2026 26
Slide 27: Growing in our chosen markets, with record £7bn forward work
Growing in our chosen markets, with record £7bn forward work Expect revenue and profit growth in FY 26 with a step change in FY 27 and beyond Record forward work position Broadening customer mix in growth markets 27 Results presentation Half Year 2026
Slide 28: Bringing our strategy to life – Nuclear energy case study
Bringing our strategy to life – Nuclear energy case study Long-term partnerships across the asset lifecycle in a growth market meeting critical national needs Road Rail Integrated Transport (Aviation) Water Energy Defence and Nuclear Energy Nuclear energy as % of Group forward work: FY23: 2% FY 25:
Slide 29: Finance income/(expense)
Finance income/(expense) Finance Incom e / (Expense) H1 26 H1 25 • Lower interest income from bank £m £m deposits due to lower rates Interest income from bank deposits 2.4 2.6 • Increase in interest income on net assets Interest income on the net assets of the defined 1.6 1.5 of the defined benefit
Slide 30: Balance sheet
Balance sheet Consolidated statem ent of financial position 30-Jun-26 30-Jun-25 £m £m Assets Retirement benefit asset 62.9 56.1 Other non-current assets 93.9 91.8 Total non-current assets 156.8 147.9 Current assets Trade receivables and other current assets 217.6 213.8 Insurance recovery asset 5.0 0
Slide 31: Cash flow
Cash flow Consolidated cash flow statem ent H1 26 H1 25 £m £m Cash generated from operations before changes in w orking capital and provisions 27.7 24.2 Changes in w orking capital and provisions (13.6) (37.2) Interest and tax paid (2.7) 0.5 Net cash genertaed from / (used by) operating activities 1
Slide 32: Adjusted to reported reconciliation
Adjusted to reported reconciliation £m H1 26 H1 25 Reported Contract Other Adjusted Reported Contract Other Adjusted Adjustm ents Adjustm ents Adjustm ents Adjustm ents Group Revenue 543.1 0.0 0.0 543.1 525.4 0.0 0.0 525.4 Cost of sales (489.5) 0.0 0.0 (489.5) (473.5) 0.0 0.0 (473.5) Gross Profit 53
Slide 33: Adjusted free cash flow
Adjusted free cash flow Adjusted free cash flow H1 26 H1 25 £m £m Cash generated from / (used by) operations 14.1 (13.0) Add back cash flow on adjusting items 0.0 0.4 Less cash flow s on cash and cash equivalents - w ith restrictions (12.3) 9.7 Less taxation (3.0) 0.0 Adjusted cash used by operating
Slide 34: H1 26 IFRS 16 impact
H1 26 IFRS 16 impact Incom e statem ent im pact £m Decrease in operating costs 7.1 Loss on disposal of assets 0.0 Increase in depreciation (6.4) Increase in finance costs (1.2) Net im pact on incom e statem ent (0.5) Fixed Assets im pact £m Fixed assets opening position 26.0 Additions 13.5 Disposals
Slide 35: Cautionary forward-looking statements
Cautionary forward-looking statements This presentation contains certain statements that are forward-looking statements based on current expectations and reasonable assumptions. Various known and unknown risks, uncertainties and other factors may cause actual results to differ from any future result