Highlights

  • Codan expects first-half FY27 net profit of at least A$162 million, against A$71.2 million a year earlier.
  • Communications Revenue guidance for H1 FY27 moved up to A$410–420 million, with segment EBIT Margin expected near 40%.
  • FY26 group revenue rose 30% to A$875.0 million, while net profit climbed 69% to A$175.2 million.
  • Minelab's first-half revenue run-rate is tracking slightly above second-half FY26 levels, supported by new gold detectors and gold prices.

Codan Limited (ASX:CDA) used its Annual General Meeting on 20 October 2026 to edge its first-half outlook higher, only three weeks after a trading update had already lifted expectations. The Adelaide-based communications and metal detection technology group now expects net profit of not less than A$162 million for the six months to 31 December 2026, compared with the A$160 million floor set on 29 September.

The upgrade rests largely on Communications, where conflict-region Demand has reshaped the half.

Communications Orders Drive a Second Upgrade

At the AGM, management guided to Communications revenue of A$410–420 million for H1 FY27, up from the A$400–410 million range given in September and well above the A$221.8 million recorded in H1 FY26. The segment, which includes DTC and Zetron, is expected to deliver an EBIT margin of about 40%, against 26% a year earlier, reflecting operating leverage.

In the September update, Codan said conflict-region revenue would represent about half of segment revenue in the half, up from roughly 20% in the prior corresponding period, while growth elsewhere was running at about 20%. For FY27 as a whole, Communications revenue growth is now targeted at the upper end of a 30–40% range. Management has stressed that visibility on conflict-region orders is low beyond about three months, leaving second-half demand and margins uncertain.

A Record FY26 Sets the Base

The guidance builds on a strong year to 30 June 2026. Group revenue rose 30% to A$875.0 million, EBIT increased 67% to A$244.1 million and net profit grew 69% to A$175.2 million, or 96.5 cents per share. Shareholders received fully franked dividends of 48.5 cents for the year, up 70%.

Communications revenue grew 22% to A$506.2 million, and its order book reached A$380 million at year-end, up 50%. Metal Detection revenue under the Minelab Brand climbed 42% to A$362.0 million, with segment profit up 65% to A$162.4 million. Codan ended the year with net cash of A$35.7 million and an undrawn A$250 million Debt facility.

Minelab Momentum and Acquisition Integration

Minelab has made a solid start to FY27, helped by its GPZ 8000 and Gold Monster 2000 detectors, a favourable gold price and expansion across its Rest of World markets. Its first-half revenue run-rate is now slightly above second-half FY26 levels.

On the Communications side, Codan completed its acquisition of US anti-jamming and interference mitigation Business Adaptive Dynamics at the end of July 2026 and is integrating it into DTC, with a focus on electronic warfare capability. Codan entered the ASX 100 index for the first time in September 2026.

What Comes Next for Codan

Chief Executive Alf Ianniello told shareholders the Building a Stronger Codan strategy had been completed about 18 months early, and that a second iteration is under way using the same three-pillar framework, with acquisitions mainly sought for Communications. The company is also working to reduce possible Supply chain constraints arising from strong order momentum.

The H1 FY27 profit expectation remains subject to final product mix and shipments. Shares were priced at A$60.265 on 2 November 2026, up 1.29% on the day, with a Market Capitalisation of A$10.99 billion.