Highlights

• Revenue rose 30% to A$875.0 million while net profit after tax climbed 69% to A$175.2 million in FY26.

• Communications orderbook reached A$380 million, up 50% in twelve months, with defence customers supplying 58% of segment revenue.

• Minelab revenue grew 42% to A$362.0 million, and its segment margin widened to 45% from 39%.

• Net cash of A$35.7 million replaced net debt, and the full-year dividend rose to 48.5 cents fully franked.

Defence radios and gold detectors pulled in the same direction at Codan Limited (ASX:CDA) in the year to 30 June 2026, lifting revenue 30% to A$875.0 million and net profit after tax 69% to A$175.2 million. The company also moved to net cash and nearly doubled its dividend. Shares were trading at A$55.20 on 23 October 2026, down 2.35%.

Communications Unit Converts Unmanned Demand Into Margin

Communications, which combines the DTC and Zetron businesses, produced A$506.2 million of revenue, up 22% and ahead of the company's 15% to 20% target for the year. Segment profit rose 45% to A$156.0 million, and the margin reached 31% from 26%. That beat the 30% margin goal the company had set for the end of FY27 by about 18 months.

Defence customers made up 58% of segment revenue, compared with 38% a year earlier. Unmanned radio revenue more than doubled to about A$215 million. The orderbook stood at A$380 million, up 50% on 30 June 2025 and up 29% on 31 December 2025.

Zetron added wins including a A$19 million contract with a US utility, an A$11 million UK Emergency Services Network contract and an A$8 million London transport radio modernisation.

Minelab Adds Volume and Wider Margins

Metal Detection, the Minelab business, lifted revenue 42% to A$362.0 million and segment profit 65% to A$162.4 million. Its margin widened to 45% from 39%.

Africa was the main driver, with revenue of about A$184 million, up 60%. Rest of World revenue rose 32%. Minelab launched four products during the year: the GPZ8000 gold detector, the Gold Monster 2000, the Vanquish 60 and the MDS-20.

Cash Flow, Dividends and a CFO Handover

Group EBIT climbed 67% to A$244.1 million, with the margin rising to 27.9% from 21.7%. Operating cash flow reached A$249.3 million.

Net cash stood at A$35.7 million at 30 June 2026, against net debt of A$88.2 million at 31 December 2025.

The full-year dividend totalled 48.5 cents per share, fully franked, made up of a 19.5 cent interim and a 29.0 cent final. That compares with 28.5 cents for FY25. Codan also completed its acquisition of Adaptive Dynamics, a US anti-jamming and interference mitigation business, in July 2026. Chief financial officer Michael Barton retired on 31 August after 22 years, with deputy CFO Kayi Li succeeding him.

FY27 Targets and Supply Chain Watch

For Communications, the company expects first-half FY27 revenue to exceed the first half of FY26 significantly. It is targeting full-year revenue growth of around 20%, subject to supply chain constraints.

At Minelab, the second-half FY26 average monthly revenue run-rate was about A$32 million, and early trading in the first half of FY27 was in line with it. The company reported strong demand for the GPZ8000 and Gold Monster 2000.

Management said constraints are emerging in parts of the global electronics supply chain and that it is monitoring them. It also scheduled a further business update for its annual general meeting on 20 October 2026.