Highlights

  • Codan (ASX:CDA) reported FY26 Revenue of AUD875.0mn, up 30%.
  • Statutory NPAT rose 69% to AUD175.2mn.
  • EBIT reached AUD244.1mn and the full-year Dividend increased 70%.
  • Growth was supported by both communications and metal-detection demand.

Codan Limited (ASX:CDA) has delivered one of the standout results of the August reporting season, posting full-year revenue of $875.0 million and net profit after tax of $175.2 million, up 69% on the prior year. The Adelaide-based technology manufacturer, best known for its Minelab metal detectors and battlefield communications equipment, released its FY26 results on 20 August 2026, capping a year in which defence orders and gold-detecting Demand both ran hot. Trading in CDA shares was halted around the results release, a standard mechanism ahead of major financial disclosures.

What just happened

Codan released its FY26 full-year results announcement to the ASX on 20 August 2026, confirming group revenue of $875.0 million, up 30% on FY25, EBITDA of $288.9 million (a 33.0% margin) and EBIT of $244.1 million, up 67%. Statutory NPAT came in at $175.2 million, up 69%, with Earnings Per Share of 96.5 cents, also up 69%. The board declared a fully franked final dividend of 29.0 cents per share, taking the full-year payout to 48.5 cents, up 70% on FY25.

The result follows a run of corporate activity through the year, including the Acquisition of Adaptive Dynamics, first announced 22 May 2026 and settled 31 July 2026, which expands Codan's communications capabilities. An FY26 trading update was also lodged on 29 April 2026, ahead of today's full detail.

Why the market is paying attention

Codan shares have been among the ASX's best performers over the past two years, closing FY25 (30 June 2025) at $20.11, up from $12.03 at the close of FY24 — a gain of roughly 67% in twelve months even before today's numbers landed. Market-data aggregators had the stock ranked 81st of nearly 2,350 ASX-listed companies by performance and sixth within the technology sector over the trailing year, having comfortably outrun both the sector index and the broader ASX 200.

Company and asset background

Codan is a dual-segment technology manufacturer. Its Communications division designs and builds tactical radios, satellite communications equipment and electronic warfare systems, sold predominantly to defence, government and humanitarian customers around the world. Its Metal Detection division owns the Minelab brand, a global leader in gold-detecting and landmine/UXO clearance detectors used by prospectors, security forces and humanitarian demining organisations. The company is headquartered in Adelaide, South Australia, and listed on the ASX. Its growth strategy in recent years has combined organic expansion in both divisions with bolt-on acquisitions, of which Adaptive Dynamics — settled at the end of July 2026 — is the latest, adding capability to the Communications business.

Financial and operational picture

The FY26 numbers show broad-based strength across both operating segments. Communications division revenue reached $506.2 million, up 22% on FY25, with segment profit of $156.0 million, up 45%, and a profit Margin of 31% — a level the company says exceeds its own FY27 target roughly 18 months ahead of schedule. Defence-related sales made up 58% of Communications revenue, up sharply from 38% a year earlier, pointing to increasing reliance on government and military contracts. The division's order book stood at $380 million at year-end, up 50% on June 2025, providing visibility into future revenue.

Metal Detection — the Minelab Business — grew revenue 42% to $362.0 million, with segment profit up 65% to $162.4 million and margin expanding to 45% from 39% the year before, reflecting both strong gold-detecting demand and operating leverage. Group-wide, the Balance Sheet improved materially, moving from net Debt of $88.2 million to net cash of $35.7 million over the twelve months, giving the company flexibility for further acquisitions or Capital returns. The fully Franked Dividend of 48.5 cents represents a payout increase in line with earnings growth.

The bull case

The scale and breadth of the earnings growth is the clearest support for continued investor interest. Both divisions expanded margins as well as revenue, suggesting the growth is not simply being bought with lower profitability. The swing to a net cash balance sheet reduces Financial Risk and creates optionality for further bolt-on acquisitions such as Adaptive Dynamics. A $380 million order book in Communications, up 50% year-on-year, provides forward revenue visibility, while management's guidance of roughly 20% revenue growth in Communications for FY27 signals confidence that the defence-driven momentum has further to run. Rising defence budgets globally and continued strength in Minelab's core detecting markets are the structural tailwinds underpinning the result.

The risks

Codan flagged caution around "emerging electronics Supply chain constraints" in its outlook commentary, a risk shared across the global electronics Manufacturing sector and one that could pressure margins or delivery timelines if components become scarcer or costlier. The business is also increasingly weighted toward defence customers — now 58% of Communications revenue — which brings exposure to government budget cycles, procurement delays and geopolitical shifts in defence spending priorities. Metal Detection revenue is tied to discretionary and commodity-linked demand (notably gold prices and prospecting activity), which can be cyclical.

What to watch next

Investors should watch for the resumption of trading following today's halt, and how the market ultimately prices in the result once dealing resumes. The company's FY26 Annual Report is expected around 18 September 2026. Beyond that, integration progress on the Adaptive Dynamics acquisition, execution against the roughly 20% FY27 Communications growth guidance, and any further commentary on electronics supply chain pressures will be key markers of whether FY26's momentum can be sustained into the new financial year.

Conclusion

Codan's FY26 result is a genuine standout — profit up 69%, a return to net cash, and margin expansion across both its defence communications and Minelab detecting businesses. The scale of the beat, rather than any single new catalyst, explains why the stock is back in the spotlight today. With a swollen order book and a strengthened balance sheet, the company enters FY27 from a position of strength, though supply chain pressures and its growing dependence on defence spending are risks worth watching as the market digests the numbers. This is not Investment advice, and prospective investors should weigh the result against their own view of valuation and risk.