COST

Costain Group PLC

Construction and Materials First-pass screen £500m

410/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 62

Valuation 25% 30

Downside protection 15% 60

First-pass take

Pure infrastructure/construction business with zero AI exposure; strong margin expansion (110bps YoY to 4.5%, targeting >5%) and exceptional £7bn forward order book (7x revenue) show operational leverage, but transportation revenue fell 28.4% due to HS2 scheduling changes, and absence of share price prevents valuation scoring.

Flags

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