Key Highlights

  • FY26 Revenue increased 30% to AUD 875mn.
  • Net profit after tax rose 69% to AUD 175.2mn.
  • The communications order book expanded 50% to AUD 380mn.
  • Codan ended June with net cash of AUD 35.7mn.

Codan entered FY27 with growth recorded across both of its operating divisions. Codan (ASX:CDA) increased revenue and profit as communications orders expanded and Minelab detector sales rose, particularly in Africa. The year ahead will depend on order conversion, component availability, new product Demand and the integration of additional unmanned-systems capability.

Company Business

Codan operates through Communications and Metal Detection. The communications division supplies tactical and critical communications equipment, radios and unmanned systems to defence, security and public-safety customers. Minelab designs and manufactures detectors used for gold prospecting, treasure detection and other applications, with Africa representing an important regional market.

Sector Context

Codan reported FY26 results on 20 August 2026. Revenue rose 30% to AUD 875.0mn, EBITDA reached AUD 288.9mn at a 33.0% margin, and EBIT climbed 67% to AUD 244.1mn. Net profit after tax increased 69% to AUD 175.2mn, lifting the NPAT Margin to 20.0% from 15.3%.

Earnings per share of 96.5 cents were also 69% higher. Communications revenue grew 22% to AUD 506.2mn, with segment profit up 45% to AUD 156.0mn at a 31% margin — clearing the company's FY27 margin target a year early. Defence customers now account for 58% of segment revenue, up from 38%, and the orderbook expanded 50% to AUD 380mn.

In July 2026 Codan completed the Acquisition of US-based Adaptive Dynamics for about AUD 21mn, adding unmanned systems engineering capability. Minelab revenue rose 42% to AUD 362.0mn and segment profit increased 65% to AUD 162.4mn, with the margin widening to 45% from 39%. African revenue of roughly AUD 184mn was 60% higher, helped by the launch of the GPZ8000 detector.

Dividends for the year totalled 48.5 cents fully franked, comprising a 19.5 cent interim and a 29.0 cent final, up 70%. The Balance Sheet swung to a net cash position of AUD 35.7mn at 30 June 2026, an improvement of about AUD 114mn from net Debt of AUD 88.2mn at 31 December 2025.

Risks to Consider

Minelab's African sales are closely tied to the gold price and to conditions in artisanal Mining regions, which can shift abruptly. Defence procurement is lumpy and politically driven.

What to Watch Next

Management is targeting approximately 20% revenue growth in Communications for FY27 and expects Minelab to track broadly in line with second-half FY26 run rates. Codan has pointed to increased demand in unmanned systems while flagging Supply chain constraints. Order book conversion, the integration of Adaptive Dynamics and early sales of new detector products are developments to monitor.

Codan finished FY26 with record revenue, a 69% profit increase, a materially larger orderbook and a net cash balance sheet. The company remains exposed to two cyclical end markets, and the FY27 outlook assumes supply chains cooperate. For investors tracking ASX technology hardware names this September, execution against that 20% Communications growth target is the clearest thing to watch.