Costain Group announced plans to double its dividend and launch a £20 million share buyback after beating cash forecasts. The UK infrastructure firm reported net cash of £190 million for FY25, surpassing the £171 million consensus. Its adjusted operating margin also exceeded the 4.5% target.

The cash surge stems from positive working capital movements and strong project completions. A key development is the removal of a dividend parity arrangement with its pension scheme. This change decouples shareholder returns from mandatory cash contributions, freeing up capital for the new payout policy.

CEO Alex Vaughan cited increased profitability and momentum in securing high-quality work. The board now targets a dividend cover of 3x, starting with the FY25 final dividend. Full details will accompany the March 10, 2026, results, with the buyback set for FY26.