Costain Group plc has strengthened its financial position with a record forward order book of £7bn while increasing profits despite a significant reduction in revenue from transport activity.
The infrastructure contractor reported revenue of £1.05bn for the year ending 31 December 2025, down from £1.25bn the previous year, reflecting lower levels of activity across road and rail programmes.
However, improved operational performance and stronger programme visibility helped the business increase profitability. Pre-tax profit rose by nearly a third to £48m, while net cash improved to £189m compared with £158m a year earlier.
The stronger balance sheet and improved cash generation enabled Costain to enhance shareholder returns. The company announced a £20m share buyback programme for the year and increased its full-year dividend by 75% to 4.2p per share.
Costain said the big driver behind the improved earnings quality was the strength of its long-term programme book.
Forward work jumped 30% to £7bn, including £1.1bn already secured for FY26, equal to about 90% of forecast revenue for the year.
