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Tier one contractor Costain has reported an 18% fall in revenue for the first half of 2025 but a 7% increase in pre-tax profit.

Revenue for the six months to 30^th June 2025 was £ 525.4m (2024 H1: £639.3m) while pre-tax profit was £18.2m (2024 H1: £17.0m).

Growth in the company’s Natural Resources division (by 7% to £209m) was offset by a 29% reduction in Transportation (down to £316m).

Within the Transportation division, revenue from road works declined by 53%, with National Highways schemes projects completing or nearing completion. Rail revenue decreased by 23 because of the rephasing of HS2 works.

Reported operating profit increased by 18% to £16.4m (2024 H1: £13.9m), reflecting a reduction in adjusting items following the completion of a corporate transformation programme.

Chief executive Alex Vaughan said: “We have delivered another strong performance in the first half of 2025. Growth in adjusted operating profit and margin reflects the improving quality of our contract portfolio, and we remain confident that we will deliver our adjusted operating margin run-rate target of 4.5% during FY 25, building on the significant growth in adjusted operating profit achieved since FY 21. Our strong net cash position, progression in our dividend and share buyback programme are creating substantial value for shareholders.

“We continue to win new work and add new customers in growth markets that provide essential infrastructure, expanding our forward work position to £5.6bn, more than four times FY 24 revenue. We have already secured 90% of our forecast revenue for the year and our bidding activity levels remain high.

“The government’s new infrastructure strategy and infrastructure pipeline, together with recent regulatory determinations in water, energy and aviation, provide clarity and confidence in the significant growth opportunities in our target markets. We are delivering our strategic priorities, investing in the business to support these attractive growth opportunities and are increasingly confident in the group’s growth prospects.”

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