Codan Limited delivered a standout FY26 result, with net profit after tax climbing 69% to $175.2 million and earnings before interest and tax surging 67% to $244.1 million against the prior corresponding period. Revenue expansion of 30% to $875.0 million, combined with significant margin expansion, underscores the company’s ability to execute on its strategic plan while capitalizing on long-term growth tailwinds in its target markets.
The Communications segment, generating $506.2 million in revenue, grew 22% year-on-year and exceeded the company’s own 15-20% guidance range. More impressively, the segment’s profit margin of 31% has already surpassed Codan’s targeted 30% goal for the end of FY27, achieving that milestone 18 months ahead of schedule. The segment profit of $156.0 million climbed 45% from the prior year, while the orderbook grew 50% to $380 million, signaling strong future revenue visibility. Metal Detection, by contrast, benefited from robust demand for new gold detector products, delivering revenue of $362.0 million, up 42%, with segment profit increasing 65% to $162.4 million.
The company’s balance sheet has undergone a dramatic transformation. At 30 June 2026, Codan reported net cash of $35.7 million, representing a $123.9 million improvement from a net debt position of $88.2 million just six months earlier at 31 December 2025. This improvement stemmed from accelerated H2 revenue growth and strong cash collections. Management has maintained substantial debt capacity, with $250 million in total debt facilities available and a further $150 million accordion capacity, providing optionality for strategic acquisitions without straining the balance sheet.
Shareholders will also appreciate the 70% increase in the full-year dividend to 48.5 cents per share, fully franked, consisting of an interim dividend of 19.5 cents and a final of 29.0 cents. Earnings per share jumped 69% to 96.5 cents, demonstrating the company’s commitment to returning capital while maintaining flexibility for growth investments. The dividend growth trajectory reflects both stronger earnings and management’s confidence in the underlying business fundamentals.
Looking ahead, investors should monitor Codan’s ability to sustain Communications margin expansion while managing the growth investment cycle, the durability of Metal Detection demand particularly in the gold market, and whether management deploys the balance sheet strength toward acquisition opportunities in line with its stated strategic priorities. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Codan Limited (ASX: CDA)
Codan Limited is a global electronics and engineering business that designs and manufactures rugged hardware, software, and embedded systems for security, military, communications, and consumer markets. The company operates through two main divisions: Communications, which provides HF radios, encryptors, and tactical communication systems to government and military customers; and Metal Detection, which supplies metal detectors to consumer and mining sectors. Codan’s products are sold to customers in more than 150 countries across government, security, military, humanitarian, and commercial markets.
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