**Summary of Costain Group PLCs Final Results for the Year Ended 31 December 2025**
**Overview**
Costain Group PLC reported strong financial performance for FY 2025, with a 9% increase in adjusted operating profit to £47.1 million and a 4.5% adjusted operating margin. The company achieved record forward work of £7 billion, up 30% from the previous year, and strengthened its balance sheet with net cash of £189.3 million. CEO Alex Vaughan highlighted the companys strategic positioning in growing markets, long-term collaborative partnerships, and improved quality of earnings.
**Financial Highlights**
**Revenue**£1,045.7 million (FY 2024: £1,251.1 million), with growth in Natural Resources offset by a reduction in Transportation.
**Adjusted Operating Profit**Up 9.3% to £47.1 million (FY 2024: £43.1 million).
**Adjusted Operating Margin**Improved to 4.5% (FY 2024: 3.4%).
**Reported Operating Profit**Increased 44.1% to £44.8 million (FY 2024: £31.1 million).
**Adjusted EPS**14.5p (FY 2024: 14.6p).
**Net Cash**Strengthened to £189.3 million (FY 2024: £158.5 million).
**Strategic Progress**
**Forward Work Position**Record £7.0 billion, up 30% from FY 2024, providing strong visibility for future growth.
**Market Positioning**Well-positioned in structurally growing markets with significant long-term investment, particularly in Transport, Water, Energy, and Defence.
**Customer Relationships**Expanded long-term partnerships with key customers, including Sellafield, Anglian Water, and Heathrow.
**Consultancy Services**Grew to 17% of Group revenues (FY 2024: 12%), with new wins in energy, transport, and water sectors.
**Sustainability and Safety**
**Safety Performance**Lost Time Injury Rate (LTIR) increased to 0.16 in FY 2025 from 0.11 in FY 2024, though other safety metrics improved.
**Sustainability Goals**Progress made towards 2030 goals, including reductions in gender and ethnicity pay gaps, social value creation, and environmental performance.
**Capital Allocation and Shareholder Returns**
**Dividend**Increased final dividend to 3.2p (FY 2024: 2.0p), with a target dividend cover of 3x adjusted earnings.
**Share Buyback**Completed a £10m share buyback in FY 2025 and announced a £20m programme for FY 2026.
**Pension Scheme**Removed dividend parity arrangement, with no further cash contributions required until January 2031.
**Outlook**
Costain expects to deliver revenue and operating profit growth in FY 2026, with an adjusted operating margin of around 4.0%. The company anticipates a step change in performance in FY 2027 and beyond, driven by increased customer investment and growth across all markets.
**Divisional Performance**
**Transportation**Revenue declined 28.4% to £605.3 million due to project completions and revised schedules, but the adjusted operating margin improved to 4.1%.
**Natural Resources**Revenue increased 8.7% to £440.4 million, with strong growth in Energy and Defence and Nuclear Energy, and stable Water revenues.
**Conclusion**
Costain Group PLC demonstrated resilience and growth in FY 2025, with a strong financial performance, record forward work, and strategic progress in key markets. The company is well-positioned for future growth, supported by long-term customer relationships, a robust balance sheet, and a focus on sustainability and shareholder returns.
