Costain Group PLC

 14 May 2026

AGM Trading Update

Trading in line with expectations, good progress towards step change in performance in FY 27

Ahead of today's Annual General Meeting ("AGM"), Costain Group PLC ("Costain" or the "Group") announces a trading update for the period 1 January 2026 to date ("the period").

Trading in line with expectations

Trading for the period remains in line with the Board's expectations. The Group continues to expect revenue growth and further growth in adjusted operating profit in FY 26, alongside an industry-leading adjusted operating margin of around 4.0% for the full year.

The Group is making good progress towards the expected step change in financial performance in FY 27 and beyond. Contract mobilisations and increased activity levels, reflecting an acceleration in customers' investment spending plans, are expected to build during the second half of FY 26. As a result, and as previously indicated, FY 26 revenue and adjusted operating profit is expected to be second half weighted.

Costain remains highly cash generative with a strong balance sheet. The Group continues to expect its FY 26 net cash position to be approximately £175m, after the partial unwind of historic working capital benefits, the ongoing £20m share buyback programme and an almost doubling of dividend cash payments. 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.

Following the announcement on 28 May 2025 of the refinancing of its bank and bonding facilities, Costain has now exercised its option to extend its £100m revolving credit facility (RCF) and £295m bonding facilities by a further year, to September 2030. The RCF remains undrawn.

Strong momentum in the Group's chosen markets

The Group's chosen markets continue to demonstrate highly attractive growth opportunities, with recent positive developments including:

·    United Utilities, a significant and long-standing customer with a contract extending to the end of AMP9, has announced that it will increase its AMP8 capital investment programme by £2.5bn (c.30%) to £11.5bn.

·    The Department for Transport has announced its Road Investment Strategy 3, the largest single investment in the strategic road network in recent times that provides £27bn of investment over the five years to 2031. This includes a £1bn Structures Fund for local authorities to fix England's bridges, flyovers and tunnels.

One important element of the Group's strategy is to expand, diversify and balance its customer base, enhancing the scale and resilience of the business. This has resulted in significant growth in the value of forward work with private and regulated customers in recent years. The value of forward work with central government customers has remained stable. At the end of FY 25, Costain's £7bn forward work position was split as follows:

·    51% with private and regulated customers, up from 30% two years ago

·    31% with central government customers, down from 64% two years ago

·    17% with devolved government customers, up from 6% two years ago

During the period, the Group has continued to win a range of work across its chosen markets (see below) and, after allowing for the revenue delivered in the period, retains a forward work position that is broadly consistent with the £7bn FY 25 year end position. The pipeline of bidding opportunities remains strong across all sectors.

Private and regulated customer wins:

·    London Gatwick Airport: two capital projects frameworks and a separate contract to upgrade and expand the North Terminal international departure lounge

·    Severn Trent Water: contract to upgrade critical sewage treatment infrastructure at Rugby

·    Thames Water: new AMP8 work has commenced across nine sites

·    Port of Dover Harbour Board (new Transport customer): place on six-year utilities infrastructure framework

·    Manchester Airports Group: five-year strategic advisory consultancy framework, building on the separate biodiversity studies consultancy contract won last year

·    National Grid (new Energy customer): contract to upgrade the Landulph substation, part of the 'Great Grid Upgrade'

Devolved government customer wins:

·    Procure Partnerships (new Transport customer): place on the North West Contractor Framework, delivering infrastructure projects across the north west region

Central government customer wins:

·    National Highways: contract to design and build a new junction on the M5

·    Government Commercial Agency: place on the Construction Professional Services 2 consultancy framework

The next scheduled trading announcement will be the Group's half year results on 13 August 2026.

Enquiries:

Investors and analysts                                                                   [email protected]

Matt Jones, Costain                                                                        +44 (0) 7860 922 341

Financial media - Headland                                                       [email protected]

Andy Rivett-Carnac                                                                         +44 (0) 7968 997 365

Charlie Twigg                                                                                     +44 (0) 7946 494 568

Notes to editors

Costain improves people's lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. Through the delivery of predictable, best-in-class solutions across the transport, water, energy and defence markets, we are creating a sustainable future and securing a more prosperous, resilient and decarbonised UK.