Costain - up 47% this year and still cheap - more contract news

Mark Watson-Mitchell
3 minutes ago
2 min read

Mark Watson-Mitchell - 12.11.2025

I am grateful to Aaron Morby at Construction Enquirer for the latest bit of news about Costain (LON:COST), my favourite infrastructure group.

It could well explain why the group's shares have been moving forward over the last week or so, now up to 156p, making a near 47% advance in price over the year to date.

Morby noted that Costain had joined the £800m Eastern Highways Alliance framework, stepping in to replace Morgan Sindall on the refreshed fourth-generation line-up just nine months after the framework was announced.

He noted that:

"The appointment marks Costain’s first place on a multi-local authority highways framework and strengthens its growing roads portfolio alongside major National Highways contracts.

Costain has secured a spot on the major project lot, covering schemes worth over £30m across an area of 7,000 square miles and 23,000 miles of roads managed by 11 local authorities.

Run by Central Bedfordshire Council, the EHA4 framework will deliver highways upgrades, bridge and subway works, and new cycle routes over a four-year term, with the option to extend for a further two years.

Other contractors on lot 3 include Milestone Infrastructure, Octavius Infrastructure and Winvic Construction."

Costain's Roads sector director Andy Denman commented that:

“Being selected by the Eastern Highways Alliance expands our portfolio of projects and partners in the roads sector.

We will be focused on establishing a strong working relationship with the Alliance that will allow us to deliver critical upgrades for a more resilient road network.”

My View

I am not expecting any formal corporate news from the group until January, however, contract info may well be forthcoming after the Budget.

The group's shares, now at 156p,