Costain 2025 results: revenue dip but record £7bn pipeline for project teams
Reviewed by Tom Sullivan

First reported on The Construction Index
30 Second Briefing
Costain’s 2025 results show revenue down 16% to £1,045.7m but pre-tax profit up 32% to £48.2m, as a 50% fall in road revenue and 25% fall in rail were offset by growth in energy and nuclear & defence work. Adjusted operating profit rose 9% to £47.1m, with adjusted free cash flow more than doubling to £63.1m and year-end net cash increasing to £189.3m despite a £10m share buyback and higher dividends. The forward work position reached a record £7.0bn, including £1.1bn already secured for 2026, giving strong visibility for civils and infrastructure delivery.
Technical Brief
- Net cash rose to £189.3m after funding a £10m share buyback and higher dividends.
- Cash generated from operations increased to £50.7m, driven by profit growth and working capital timing.
- Forward work position climbed from £5.4bn at end‑2024 to £7.0bn by end‑2025, a 30% uplift.
- Order and preferred‑bidder pipeline now equates to almost seven times 2025 revenue, improving delivery visibility.
- Secured 2026 workload of £1.1bn already covers c.90% of forecast revenue, de‑risking near‑term resource planning.
- Management explicitly targets revenue and operating profit growth in 2026, with a “step change” from 2027 onwards.
Our Take
The record £7bn forward work position and 90% 2026 revenue coverage align with recent wins such as the £100M M5 junction 22A contract and United Utilities’ Crewe wastewater upgrade, signalling that Costain’s pipeline is now weighted more towards complex water, highways-junction and tunnelling packages than traditional volume road and rail frameworks.
Costain’s re-entry to the FTSE 250, noted in our recent coverage, combined with a strengthened net cash position and a £10M share buyback, gives it more room to be selective on UK infrastructure bids, which typically allows contractors to push harder on risk allocation and margin in long-duration design-and-build work.
With forward work running at roughly seven times 2025 revenue in the United Kingdom, Costain is now in a similar backlog-to-revenue range to other major UK civils players in our database, suggesting that delivery performance and supply chain capacity—rather than order book volume—will be the main constraints on growth into 2027 and beyond.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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