Costain has launched a £10m share buyback programme after its defined benefit pension scheme was in surplus for the second year running.
The UK’s 16th biggest contractor said on Monday (16 June) that the programme was an “appropriate and value-enhancing use of cash”. It added that it would still be able to “maintain the group’s financial flexibility to continue to invest in its strategy to deliver sustainable growth and attractive returns”.
Costain instructed Investec Bank and Panmure Liberum to lead the share buyback. It follows a similar £10m programme in 2024.
The contractor also revealed in a trading update for the six months to 30 June 2025 that its trading remained in line with expectations for the year to 31 December 2025. It said its “strong, high-quality forward-work position” was worth more than four times its annual revenue.
Last year, Costain tabled a revenue of £1.25bn and chief executive Alex Vaughan said the London Stock Exchange-listed contractor was “in the best shape it’s ever been”.
In announcing his firm’s trading update, he said: “Over the past three years we have executed on our strategic plans, improved the quali