Costain Group (COST): Enhanced shareholder returns

This situation live

£662m · 249.0p · +54% since the first step

10 Mar 2026 · Confirmed: £20m buyback and 3x dividend cover · +1% until the next step The Board will proceed with both actions.

Capital return

Enhanced shareholder returns

Buyback 38% done; dividend cover cut

OCT23 Next: interim dividend payment; buyback continues

Every step · 4

26 Jan 2026 Board's current intention, not yet confirmed – If the Board confirms this, details are expected to be given with the Group's FY 25 results announcement on 10 March 2026. ↗
10 Mar 2026 Confirmed: £20m buyback and 3x dividend cover – The Board will proceed with both actions. ↗
14 May 2026 Buyback under way: £4.0m spent of £20m – As at 13 May 2026, the Group had purchased a total of 2.1m shares for an aggregate consideration of £4.0m under the share buyback programme. ↗
13 Aug 2026 Buyback 38% done; dividend cover cut – Interim dividend doubled to 2.0p (H1 25: 1.0p), reflecting the Group's new target dividend cover of 2.5x adjusted earnings (previously 3x adjusted earnings). ↗

What is happening

Costain Group: Enhanced shareholder returns – Buyback 38% done; dividend cover cut. ['Buyback 38% done; dividend cover cut']

In short: 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.
Announced: 26 Jan 2026 · Board's current intention, not yet confirmed
Latest: 13 Aug 2026 · Buyback 38% done; dividend cover cut
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)
Dividends: cash payments almost doubling
Buyback: £7.6m deployed in H1 26, 38% of £20m FY 26 programme
Interim dividend: 2.0p, double H1 25's 1.0p; paid 23 October 2026, ex-dividend 17 September 2026
Dividend cover: New target 2.5x adjusted earnings (previously 3x)
H1 net cash: £164.4m after £8.2m dividend payment

interim dividend payment; buyback continues (23 Oct 2026).

Briefing Pro

What it does, how it got here, what management promised and delivered – written from its own announcements.

From the company's own announcements. Not investment advice.

Also at Costain Group 2 open