Codan Limited (ASX:CDA) has released its full year results for the year ended 30 June 2026, reporting higher revenue, EBIT and net profit after tax across its Communications and Metal Detection segments. The announcement also covered the balance sheet, a final dividend, an Acquisition completed in July 2026, FY27 targets and a change of chief financial officer.

Introduction

In an ASX release dated 20 August 2026, Codan Limited (ASX:CDA), an Australian-based technology company, announced its FY26 results. Codan develops technology solutions for communications, safety, security and productivity in demanding environments. Its Communications segment comprises DTC and Zetron, and its Metal Detection segment is Minelab.

This article summarises the announcement, the sector context, the risks described and the next steps.

Press Release Details

Group Revenue was $875.0 million, up 30 per cent on the prior corresponding period. EBIT was $244.1 million, up 67 per cent, and net profit after tax was $175.2 million, up 69 per cent. EBIT Margin was 27.9 per cent compared with 21.7 per cent. Earnings Per Share were 96.5 cents. The company said both EBIT and NPAT were slightly above the guidance provided on 29 April 2026.

Communications revenue was $506.2 million, up 22 per cent, above the company’s 15 to 20 per cent FY26 target. Segment profit was $156.0 million, up 45 per cent, with a margin of 31 per cent. Revenue from defence customers represented 58 per cent of Communications revenue, up from 38 per cent in FY25. Revenue from the unmanned sector more than doubled to about $215 million, and the Communications orderbook was $380 million, up 50 per cent on 30 June 2025.

Within Communications, Codan said Zetron was affected in the first half by a temporary slowdown in US federal procurement, with second half revenue broadly in line with the first half, and that its order book grew 25 per cent by 30 June 2026. Wins cited include a $19 million contract with a US east coast utility, an $11 million UK Emergency Services Network contract and an $8 million radio communications modernisation for a London underground transport provider.

Metal Detection revenue was $362.0 million, up 42 per cent, and segment profit was $162.4 million, up 65 per cent, with a margin of 45 per cent. Minelab launched four products in FY26, including the GPZ8000 gold detector and the Gold Monster 2000, and Minelab Africa revenue rose 60 per cent to approximately $184 million.

Codan finished the year with net cash of $35.7 million, compared with net Debt of $88.2 million at 31 December 2025. The company has a $250 million total debt Facility and a further $150 million in accordion capacity, available subject to bank approval. The FY26 fully franked Dividend was 48.5 cents per share, up 70 per cent, comprising an Interim Dividend of 19.5 cents and a final dividend of 29.0 cents.

In July 2026, Codan completed the acquisition of Adaptive Dynamics, a US-based engineering company specialising in anti-jamming and interference mitigation technologies. The company also announced that Michael Barton will retire as Chief Financial Officer effective 31 August 2026, when Deputy CFO Kayi Li assumes the role, and that Daniel Widera becomes sole Company Secretary.

Sector Backdrop

Codan’s release describes market conditions as positive across both Communications and Metal Detection. It cites elevated defence spending and ongoing geopolitical tensions as generating Demand for unmanned systems, and attributes Minelab’s demand to its products and a favourable gold price.

The company links the defence share of Communications revenue to global tailwinds of sovereignty and increased defence spending commitments. DTC reported its first orders for radios into multiple programs of record for US military initiatives, and the Adaptive Dynamics acquisition is intended to strengthen its US technical capabilities in unmanned systems and electronic warfare resilience.

In metal detection, the company refers to demand from recreational users, gold prospectors, demining and military customers, with particular demand in Africa. The release also notes that some constraints are emerging across parts of the global electronics Supply chain.

Risks Shareholders Should Weigh

The announcement identifies supply chain constraints as a Factor that could affect delivery. Its FY27 revenue target for Communications is described as subject to related supply chain constraints resulting from ongoing order momentum, and the company says it is monitoring emerging electronics supply constraints for any impact on operations.

The release also shows concentration in particular demand drivers. Defence customers made up 58 per cent of Communications revenue, unmanned systems revenue was about $215 million, and gold detector demand is linked to the gold price. Zetron’s first-half revenue was affected by a slowdown in US federal procurement.

Other items include the integration of the Adaptive Dynamics acquisition, the CFO transition after 22 years of service by the outgoing officer, and an increase in expenses during the year that the company attributed to go-to-market investment, product launch costs, systems and capability, and higher performance-related remuneration.

What’s Next

For FY27, the company expects first half Communications revenue to significantly exceed the first half of FY26 and is targeting full-year Communications revenue growth in the order of 20 per cent, subject to supply chain constraints. For Minelab, early H1 FY27 conditions have been positive, with Africa and the rest of the world tracking broadly in line with H2 FY26 run-rates. Minelab’s H2 FY26 average monthly revenue was approximately $32 million.

Codan said the Board will provide a further Business update at the Annual General Meeting on 20 October 2026. Kayi Li will assume the CFO role on 31 August 2026, and Michael Barton will remain available to support the transition for 12 months.