Infrastructure specialist Costain has revealed a slump in revenues following the completion of road projects and further delays to work on HS2.
However, the London-based firm has said it has seen levels of new work grow amid a boost from the Government’s infrastructure strategy.
Chief executive Alex Vaughan said: “We have delivered another strong performance in the first half of 2025.”
The construction company told shareholders that revenues slid by 17.8% to £525.4 million for the six months to June 30, compared with the same period a year earlier.
It said this was driven by weaker revenues from road projects due to the completion of recent work and the Government’s rephasing of HS2.
Earlier this year, the Government said development on HS2 would be delayed, meaning its first phase would not be completed as originally planned by 2033.
Costain stressed that it saw growth from other parts of its transport business, with increased work linked to Heathrow airport.
It also saw stronger revenues in its energy, defence and nuclear energy divisions.
The firm also reported that adjusted operating profits grew by 3.1% to £16.8 million for the half-year.
Costain said the Government’s infrastructure strategy and regulatory commitments to improvements across a raft of a sectors will provide the business with more work.
In June, the Government said at least £9 billion a year would go to tackling the “soaring maintenance backlog” and fixing crumbling schools, hospitals and prisons over the next decade under its infrastructure programme.
Mr Vaughan said: “The Government’s new Infrastructure Strategy and Infrastructure Pipeline, together with recent regulatory determinations in water, energy and aviation, provide clarity and confidence in the significant growth opportunities in our target markets.
“We are delivering our strategic priorities, investing in the business to support these attractive growth opportunities and are increasingly confident in the Group’s growth prospects.”
