Costain's shares rose c18% on its FY25 results to 201p – the highest level since 2019 and a 5x recovery from the 34p floor. We attribute this re-rating to a structural shift in the business: the elimination of single-stage lump sum contracts and a sustained track record of reliable delivery. Yet on a blended EV/EBIT of 6.0x across all forecast years, we believe the market has still not fully priced in the quality of the current order book. Our forecasts are underpinned by a £7.0bn forward work p ....
