Costain wins major HS2 contract
It has been announced that engineering firm Costain has been awarded a contract by HS2 worth upwards of £400m.
The deal will see the group supply tunnel and lineside mechanical and electrical systems over a seven-year period, beginning in the first quarter of 2025.
It comes after a stellar year for the company, which has seen its shares rise over 60 per cent since January.
Costain reported a near-doubling of profit in its half-year results in August. It also announced a £10m share buyback programme.
In a statement, chief executive Alex Vaughan said: “Costain has a long-standing involvement with the UK’s largest strategic infrastructure programme and this new contract is a testament to the strength of our collaborative and successful relationship with HS2.”
Costain previously secured a £3.3bn contract in April 2020 to design and build the tunnels connecting the high-speed route to its London Euston terminus.
HS2 is the largest construction project in western Europe, yet its future has been shrouded in uncertainty in recent years amid a seemingly uncontrollable budget and ongoing delays.
Last month, the new Labour government committed to HS2 reaching Euston in Central London, following concerns that it could be forced to terminate in the capital’s western suburbs at Old Oak Common.
Rail minister Lord Peter Hendy unveiled two giant tunnel boring machines on Monday. They will be used to drill the 4.5-mile tunnel between Old Oak Common and Euston.
There is currently no fixed date for services to run to Euston, but they could begin by 2040.
HS2’s final budget could fall anywhere between £45bn and £57bn, according to recent estimates from the former Conservative government and HS2’s board.