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Costain
(LSE:COST)
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Rating:75Outperform
Price Target:
241.00 p
▲(4.56% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving profitability, strong balance-sheet positioning, and solid cash-flow quality, which indicate a materially healthier business than in 2020–2021. Technicals add support as the stock trades above key moving averages with positive MACD and neutral momentum. Valuation is reasonable but not especially cheap, while the multi-year revenue decline remains the key offsetting risk to the otherwise improving fundamentals.
Positive Factors
Profitability Turnaround
The sustained move from losses to positive earnings, alongside stronger gross and net margins, indicates improved project execution and cost discipline. If maintained, this creates a more resilient earnings base across Costain’s infrastructure contracts.
Negative Factors
Persistent Revenue Decline
A multi-year top-line contraction is a structural concern because it can limit operating leverage, weaken market momentum, and make margin gains harder to sustain. Continued decline would also constrain Costain’s ability to grow earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
The sustained move from losses to positive earnings, alongside stronger gross and net margins, indicates improved project execution and cost discipline. If maintained, this creates a more resilient earnings base across Costain’s infrastructure contracts.
Read all positive factors
Costain (COST) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£598.67M
Dividend Yield1.85%
Average Volume (3M)879.93K
Price to Earnings (P/E)15.8
Beta (1Y)0.64
Revenue Growth-6.49%
EPS Growth22.41%
CountryUK
Employees3,266
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.14
Shares Outstanding263,150,450
10 Day Avg. Volume929,008
30 Day Avg. Volume879,931
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.66
Price to Sales (P/S)0.41
P/FCF Ratio8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£275.00Price Target Upside19.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.15
Revenue Forecast (FY)£1.24B
Costain Business Overview & Revenue Model
Company Description
Costain Group PLC, established in 1865 and headquartered in Maidenhead, UK, specializes in providing intelligent infrastructure solutions. Serving the United Kingdom's energy, water, transportation, and defense markets, the company operates throug...
How the Company Makes Money
Costain primarily makes money by delivering contracted services and projects for public- and private-sector infrastructure owners and operators. Its main revenue stream is service and project delivery income earned under frameworks and individual ...
Costain Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.05B | 1.25B | 1.33B | 1.42B | 1.14B |
| Gross Profit | 114.50M | 112.70M | 103.30M | 103.50M | 82.20M | 39.10M |
| EBITDA | 62.30M | 61.00M | 52.60M | 50.90M | 47.20M | 4.60M |
| Net Income | 38.00M | 37.30M | 30.60M | 22.10M | 25.90M | -5.80M |
Balance Sheet | ||||||
| Total Assets | 583.10M | 561.90M | 547.20M | 468.60M | 482.20M | 532.40M |
| Cash, Cash Equivalents and Short-Term Investments | 202.70M | 215.30M | 158.50M | 164.40M | 123.80M | 159.40M |
| Total Debt | 32.50M | 25.00M | 25.80M | 24.30M | 29.50M | 66.20M |
| Total Liabilities | 325.40M | 303.70M | 311.50M | 249.20M | 271.00M | 333.40M |
| Stockholders Equity | 257.70M | 258.20M | 235.70M | 219.40M | 211.20M | 199.00M |
Cash Flow | ||||||
| Free Cash Flow | 73.80M | 49.90M | 37.20M | 55.60M | 13.60M | 27.30M |
| Operating Cash Flow | 75.20M | 51.30M | 42.70M | 55.70M | 14.10M | 29.50M |
| Investing Cash Flow | -2.90M | -2.80M | -9.00M | -100.00K | -1.30M | -2.20M |
| Financing Cash Flow | -43.20M | -30.10M | -25.60M | -15.00M | -48.40M | -18.80M |
Costain Technical Analysis
Positive
230.50
Price Trends
217.21
Positive
205.56
Positive
188.01
Positive
Market Momentum
3.01
Positive
56.12
Neutral
36.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COST, the sentiment is Positive. The current price of 230.5 is above the 20-day moving average (MA) of 225.55, above the 50-day MA of 217.21, and above the 200-day MA of 188.01, indicating a bullish trend. The MACD of 3.01 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:COST.
Costain Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £598.67M | 15.78 | 14.73% | 1.85% | -6.49% | 22.41% | |
73 Outperform | £2.05B | 13.46 | 24.09% | 2.67% | 9.58% | 14.74% | |
72 Outperform | £594.88M | 16.72 | 30.23% | 3.32% | 0.53% | -8.91% | |
71 Outperform | £1.06B | 18.94 | 11.69% | 3.09% | 2.50% | 40.96% | |
70 Outperform | £4.12B | 16.51 | 22.88% | 1.60% | 12.13% | 47.64% | |
68 Neutral | £2.00B | 10.52 | 24.83% | 3.74% | 10.84% | 24.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GB:COST
Costain
225.00
96.78
75.48%
GB:BBY
Balfour Beatty
870.00
262.55
43.22%
GB:GFRD
Galliford Try
595.00
188.10
46.23%
GB:KLR
Keller Group plc
3,038.00
1,754.91
136.77%
GB:KIE
Kier Group plc
250.40
70.48
39.18%
GB:MGNS
Morgan Sindall
4,212.00
184.99
4.59%
Costain Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Costain’s Cash Strength and Record Order Book Set Up Step-Change in Growth
Positive
Aug 13, 2026
Costain reported another strong first-half performance for 2026, with revenue up 3.4% to £543.1m and adjusted operating profit rising 3% while maintaining a 3.2% margin, marking what management describes as an inflection point ahead of a plan...
Business Operations and StrategyStock Buyback
Costain reduces share capital through ongoing buyback
Positive
Aug 12, 2026
Costain Group PLC has continued to execute its share buyback programme, purchasing a total of 205, – wait this must be precise. Costain Group PLC has continued to execute its share buyback programme, acquiring ordinary shares on the London S...
Business Operations and StrategyStock Buyback
Costain Reduces Share Capital Through Ongoing Buyback Programme
Positive
Aug 5, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, purchasing ordinary shares on the London Stock Exchange between 29 July and 4 August 2026 via Investec. The acquisitions were made at volume‑weighte...
Regulatory Filings and Compliance
Costain Confirms Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
Costain Group PLC has confirmed that, as of 31 July 2026, its issued share capital consists of 264,266,847 ordinary shares of 1 pence each, with every share carrying one voting right. The company holds no ordinary shares in treasury, meaning all i...
Business Operations and StrategyStock Buyback
Costain Cuts Share Capital Further with Ongoing Buyback Cancellations
Positive
Jul 29, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, purchasing ordinary shares on the London Stock Exchange between 22 and 28 July 2026. The trades, carried out via Investec, were executed at volume-weighte...
Business Operations and StrategyFinancial Disclosures
Costain to Host Online Q&A on Half-Year 2026 Results
Positive
Jul 27, 2026
Costain has scheduled an investor QA session to discuss its half-year 2026 results, with CEO Alex Vaughan and CFO Helen Willis hosting the event via the Investor Meet Company platform on 17 August 2026. The company will release its half-year 2026 ...
Business Operations and StrategyStock Buyback
Costain cancels additional shares as buyback cuts share count
Positive
Jul 22, 2026
Costain Group PLC has continued executing its previously announced share buyback programme, purchasing ordinary shares on the London Stock Exchange between 15 and 21 July 2026 through Investec. The company intends to cancel all shares repurchased,...
Business Operations and StrategyStock Buyback
Costain Completes First £10m Buyback Tranche and Launches Second Phase
Positive
Jul 15, 2026
Costain has continued executing its share buyback programme, purchasing 504,928 ordinary shares on the London Stock Exchange between 8 and 14 July 2026 at volume-weighted average prices around 207 pence. The company intends to cancel all shares ac...
Business Operations and Strategy
Costain wins three-year extension to United Utilities maintenance contract
Positive
Jul 15, 2026
Costain has secured a three-year extension to its Managed Service Provider contract with United Utilities, extending their partnership to ten years and covering the remainder of the AMP8 regulatory cycle. The company’s team of more than 120 ...
Business Operations and StrategyStock Buyback
Costain Advances Share Buyback, Cancels Over 4.5 Million Shares
Positive
Jul 9, 2026
Costain has continued executing its share buyback programme, purchasing 840,543 ordinary shares between 1 and 7 July 2026 on the London Stock Exchange via Panmure Liberum. The company intends to cancel these shares, reflecting ongoing capital mana...
Business Operations and StrategyStock Buyback
Costain Advances Share Buyback, Cancels Further Share Capital
Positive
Jul 1, 2026
Costain Group PLC has continued executing its previously announced share buyback programme, repurchasing 151,424 ordinary shares between 24 and 30 June 2026 at volume-weighted average prices of around 207 pence per share. The company intends to ca...
Business Operations and StrategyRegulatory Filings and Compliance
Costain keeps employee Sharesave headroom unchanged in latest block listing return
Neutral
Jul 1, 2026
Costain Group PLC reported its latest six‑monthly block listing return for the company’s Employee Sharesave Plan, confirming that no new shares were issued or allotted between 1 January and 30 June 2026. The balance of unallotted secur...
Regulatory Filings and Compliance
Costain Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Costain Group PLC has confirmed that, as of 30 June 2026, its issued share capital consists of 266,129,025 ordinary shares of 1 pence each, with every share carrying one voting right and no shares held in treasury. This total share count serves as...
Regulatory Filings and Compliance
Costain Non-Executive Director Increases Personal Shareholding
Positive
Jun 25, 2026
Costain Group PLC reported that non-executive director Amanda Fisher purchased 1,953 ordinary shares in the company at £2.0359 per share. Following this transaction, her total holding stands at 11,953 shares, representing 0.004% of the compan...
Business Operations and StrategyStock Buyback
Costain Reduces Share Count Further With Latest Buyback Tranche
Positive
Jun 24, 2026
Costain Group has continued to execute its previously announced share buyback programme, repurchasing 325,772 ordinary shares between 17 and 23 June 2026 on the London Stock Exchange at prices generally around 204p to 210p per share. The company i...
Regulatory Filings and Compliance
Costain CEO’s Family Member Sells Shares as Executive Stake Remains High
Positive
Jun 23, 2026
Costain disclosed that Alice Vaughan, a person closely associated with chief executive Alex Vaughan, sold 415,015 ordinary shares at £2.063771 each on 22 June 2026. Despite the sale, Alex Vaughan retains an interest in 1,803,919 shares, equiv...
Regulatory Filings and Compliance
Costain CFO’s Associate Sells Shares as Executive Stake Remains Above Guideline
Neutral
Jun 18, 2026
Costain disclosed that Colin Keane, a person closely associated with Chief Financial Officer Helen Willis, sold 344,645 ordinary shares in the company at £2.005 per share on 16 June 2026. Following this transaction, Willis retains an interest...
Business Operations and Strategy
Costain wins key road contract to unlock West Winch housing scheme
Positive
Jun 18, 2026
Costain has been selected by Norfolk County Council to design and build the new road infrastructure for the West Winch Housing scheme near King’s Lynn, a key element of a £122m programme to unlock up to 4,000 new homes. The project, wit...
Business Operations and StrategyStock Buyback
Costain Continues Buyback, Cancels More Shares to Tighten Equity Base
Positive
Jun 17, 2026
Costain Group PLC has continued to execute its previously announced share buyback programme, repurchasing 333,362 ordinary shares between 10 and 16 June on the London Stock Exchange through Panmure Liberum. The company intends to cancel all of the...
Business Operations and StrategyStock Buyback
Costain advances share buyback as it cancels more stock
Positive
Jun 10, 2026
Costain Group PLC has continued to execute its share buyback programme, repurchasing 230,666 ordinary shares between 3 and 9 June 2026 on the London Stock Exchange at volume-weighted average prices around 191–194 pence. The company intends t...
Business Operations and Strategy
Costain wins place on £700m Transport for London infrastructure framework
Positive
Jun 9, 2026
Costain has been selected by Transport for London as one of three contractors on its Infrastructure Improvement Framework, a multi-discipline programme with a total value of about £700m over an initial two-year term, with an option for a furt...
Business Operations and Strategy
Costain Secures Spot on TfL’s £700m Infrastructure Framework
Positive
Jun 9, 2026
Costain has been appointed as one of three contractors on Transport for London’s new Infrastructure Improvement Framework, a multi-discipline programme with an estimated total value of about £700m over an initial two-year term, extendab...
Stock Buyback
Costain Advances Buyback, Cancels Additional Shares
Positive
Jun 3, 2026
Costain Group has continued to execute its previously announced share buyback programme, repurchasing 225,483 ordinary shares between 27 May and 2 June 2026 at volume‑weighted average prices around 192 pence. The trades, executed through Pan...
Regulatory Filings and Compliance
Costain confirms current share capital and voting rights
Neutral
Jun 1, 2026
Costain has confirmed its total voting rights and share capital position as of 31 May 2026, stating that it has 267,354,422 issued ordinary shares of 1 pence each in circulation. Each ordinary share carries one voting right, and the company holds ...
Business Operations and StrategyStock Buyback
Costain Cancels Further Shares as Buyback Programme Progresses
Positive
May 27, 2026
Costain Group has continued to execute its share buyback programme, repurchasing 183,474 ordinary shares between 20 and 26 May 2026 on the London Stock Exchange at volume-weighted average prices around 193 pence. The purchases were executed throug...
Executive/Board Changes
Costain grants performance-linked long-term share awards to top executives
Positive
May 22, 2026
Costain has granted new long-term incentive awards to chief executive Alex Vaughan and chief financial officer Helen Willis under its 2023 Long Term Incentive Plan. The nil-cost options cover 359,643 shares for Vaughan and 301,565 shares for Willi...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Costain advances share buyback, cancels further stock to tighten capital base
Positive
May 20, 2026
Costain Group has continued executing its previously announced share buyback programme, repurchasing 199,322 ordinary shares on the London Stock Exchange between 13 and 19 May 2026 at volume-weighted average prices broadly around 195p to 203p. The...
Delistings and Listing ChangesDividendsRegulatory Filings and Compliance
Costain issues new shares under renewed scrip dividend scheme
Neutral
May 18, 2026
Costain Group PLC has confirmed that shareholders have renewed the company’s scrip dividend scheme and elected to receive 41,140 new ordinary shares of 1p each instead of cash for the final dividend for the year to 31 December 2025, payable ...
Executive/Board Changes
Costain’s Tony Quinlan to Join Harworth Board as Independent Director
Positive
May 18, 2026
Costain has announced that its Non-Executive Director Tony Quinlan will join the board of Harworth Group as an Independent Non-Executive Director from 1 June 2026. In his new role, Quinlan will sit on Harworth’s Audit and Remuneration Commit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.