Costain Group
COST · Main Market · Construction and Materials · mcap £662m · 249.0p 3 open situations →
Open · 3
1 director buying
- 1 Oct 2026 ANTHONY JAMES QUINLAN £15k
Enhanced shareholder returns
Costain confirmed a £20m buyback and 3x dividend cover with its FY25 results on 10 March 2026, after the January pension agreement. At the 13 August 2026 H1 results it had spent £7.6m (38%) of the buyback, cut target dividend cover to 2.5x and doubled the interim dividend to 2.0p. FY26 net cash is now guided to about £170m.
- Buyback size
- £20m on-market programme in FY26
- Progress
- 2.1m shares bought for £4.0m by 13 May 2026
- FY26 net cash
- Approximately £170m (previously about £175m) 13 Aug 2026 ↗
- Dividends
- cash payments almost doubling
- Buyback
- £7.6m deployed in H1 26, 38% of £20m FY 26 programme 13 Aug 2026 ↗
- Interim dividend
- 2.0p, double H1 25's 1.0p; paid 23 October 2026, ex-dividend 17 September 2026 13 Aug 2026 ↗
Next: interim dividend payment; buyback continues · 23 Oct 2026
- 13 Aug 2026 Buyback 38% done; dividend cover cut
- 14 May 2026 Buyback under way: £4.0m spent of £20m
- 10 Mar 2026 Confirmed: £20m buyback and 3x dividend cover
- 26 Jan 2026 Board's current intention, not yet confirmed
M5 junction 22A delivery
Costain was awarded the c.£100m, five-year design and build M5 junction contract via the Regional Delivery Partnership framework on 27 January 2026. The 13 August 2026 H1 results say Road revenue should return to growth in H2 26 and FY 27 as the M5 and M60 projects move from design to construction.
- Customer
- National Highways 13 Aug 2026 ↗
- Contract value
- approximately £100m over five years 13 Aug 2026 ↗
- Timing
- mobilisations expected to build during second half of FY 26
- Next milestone
- Design-to-construction progression driving Road revenue growth in H2 26 and FY 27 13 Aug 2026 ↗
Next: construction phase on M5 project; mobilisation in H2 26
- 13 Aug 2026 Awarded; moving into construction
- 14 May 2026 Contract awarded; mobilisation due
- 27 Jan 2026 Contract awarded; five-year design and build
Closed · 2
Company filings. Not investment advice.