Codan (ASX:CDA): Why This Technology Company Remains on Market Radar

Sonal Goyal

17 September 2026 07:28 PM AEST

Codan (ASX:CDA): Why This Technology Company Remains on Market Radar

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Codan Limited (ASX:CDA) reported FY26 Revenue of $875.0 million, up 30% on the prior corresponding period, with shares trading at $48.865, down 0.15%, during the Trading session on 17 September 2026.
Earnings before interest and tax rose 67% to $244.1 million, while net profit after tax increased 69% to $175.2 million.
The company moved to a net cash position of $35.7 million at 30 June 2026, compared with net Debt of $88.2 million at 31 December 2025.
Codan declared a fully franked FY26 Dividend of 48.5 cents per share, comprising a 19.5 cent interim and 29.0 cent final dividend, up 70% on FY25.

Codan Limited (ASX:CDA) shares traded at $48.865, down 0.15%, during the trading session on 17 September 2026. The Australian-based technology company, which operates Communications and Metal Detection segments, released its full-year results for the year ended 30 June 2026, reporting growth across both segments and a substantial increase in profitability.

FY26 Financial Results

Codan reported Group revenue of $875.0 million for FY26, up 30% on the prior corresponding period. Earnings before interest and tax rose 67% to $244.1 million, while net profit after tax increased 69% to $175.2 million. Earnings Per Share rose to 96.5 cents, up 69% on the prior year. Group EBITDA was $288.9 million, representing a 33.0% margin.

The Communications segment generated revenue of $506.2 million, up 22% on the prior corresponding period and exceeding the company's 15-20% FY26 target range. Segment profit rose 45% to $156.0 million, with a profit Margin of 31%, which the company said exceeded its 30% end-of-FY27 target 18 months ahead of schedule. The segment's orderbook stood at $380 million, up 50% from 30 June 2025.

The Metal Detection segment delivered revenue of $362.0 million, up 42% on the prior corresponding period, with segment profit rising 65% to $162.4 million. The company attributed this performance primarily to strong gold detector Demand globally.

Balance Sheet Position

Codan moved to a net cash position of $35.7 million as at 30 June 2026, compared with net debt of $88.2 million as at 31 December 2025, which the company attributed to second-half revenue growth and strong cash collections.

Dividend Declaration

The company declared a fully franked FY26 dividend of 48.5 cents per share, comprising an Interim Dividend of 19.5 cents and a final dividend of 29.0 cents, an increase of 70% on FY25. Managing Director and CEO Alf Ianniello said Group EBIT and NPAT came in slightly above the guidance provided to the market on 29 April 2026, reflecting disciplined execution of the company's strategic plan and its ability to capitalise on structural growth opportunities across its target markets globally.

Key Takeaways

Codan reported growth across both its Communications and Metal Detection segments for FY26, with revenue, EBIT and net profit all rising by double-digit or greater percentages and the company moving from a net debt to a net cash position over the second half of the year. The substantial increase in the fully franked dividend, alongside the Communications segment achieving its FY27 profit margin target well ahead of schedule, points to a Business delivering against its stated strategic targets across a diversified earnings base.

FAQs

Q: What was Codan's FY26 revenue?

A: Group revenue rose 30% to $875.0 million compared with the prior corresponding period.

Q: How much did Codan's net profit increase in FY26?

A: Net profit after tax rose 69% to $175.2 million.

Q: What dividend did Codan declare for FY26?

A: The company declared a fully franked dividend of 48.5 cents per share, comprising a 19.5 cent interim and 29.0 cent final dividend, up 70% on FY25.

Q: Which segment drove Codan's growth in FY26?

A: Both segments contributed: Communications revenue grew 22% and Metal Detection revenue grew 42%, driven primarily by strong gold detector demand.

Q: Did Codan's balance sheet improve in FY26?

A: Yes, the company moved to a net cash position of $35.7 million at 30 June 2026, from net debt of $88.2 million at 31 December 2025.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.