Highlights

  • FY26 Revenue increased 30% to A$875.0 million.
  • EBIT rose 67% to A$244.1 million, while NPAT increased 69% to A$175.2 million.
  • Communications Demand and new gold detector products were key contributors to the result.
  • The annual Dividend increased 70% to 48.5 cents per share, fully franked.
  • Codan continued investing in people, systems and product development to support future growth initiatives.

Codan Limited (ASX:CDA) is an international technology company that develops electronics solutions across communications and metal detection for government, corporate, NGO and consumer markets. In FY26, the company recorded higher revenue and Earnings as demand for communications equipment and new Minelab products supported performance. The result also reflected continued Investment in the capabilities required to support future product and market expansion.

FY26 Financial Performance

For the year ended 30 June 2026, Codan reported revenue of A$875.0 million, up 30% from the prior corresponding period. EBIT increased 67% to A$244.1 million, while net profit after tax rose 69% to A$175.2 million. Both EBIT and NPAT finished slightly above the guidance provided by the company in April 2026.

The result shows that earnings expanded faster than revenue during the year. Codan attributed the group outcome to contributions from both operating segments, supported by organic growth and the full-year contribution from Kägwerks.

Communications Demand Supports Growth

Communications remained an important contributor during FY26. In its April trading update, Codan said demand from defence customers for unmanned systems was supporting growth in software-defined radio products. The company also expected the Communications segment to achieve a 30% profit Margin for FY26, ahead of the timetable previously set for that target.

Government and defence procurement can involve long sales and delivery cycles, making order timing an important Factor for reported revenue. Codan continues to invest in product development and operating capacity as it expands its communications offering.

Minelab Benefits From New Products

Codan also identified new gold detector products as a key driver of FY26 revenue growth. Minelab operates within the group’s metal detection Business and serves markets ranging from recreational detecting to gold prospecting and mine detection. The company said favourable gold market conditions and recent product releases supported trading during the year.

Demand in this business can vary with customer activity, regional conditions and product cycles. Continued product development therefore remains central to maintaining the contribution from the metal detection segment.

Capital Management and Investment

Codan declared an annual dividend of 48.5 cents per share, fully franked, representing a 70% increase from FY25. The company also continued directing expenditure toward people, processes and systems intended to support strategic growth initiatives.

During 2026, Codan completed the Acquisition of Adaptive Dynamics after announcing the transaction in May. The company has maintained a disciplined approach to Capital allocation while continuing to assess opportunities that fit its product and technology portfolio.

Key Insights

Codan’s FY26 result was driven by two distinct technology businesses: communications and metal detection. Revenue and profit increased materially during the year, while management continued investing in product development and operating capability. Future reporting will provide further evidence on whether demand across defence communications and metal detection can sustain the higher earnings base established in FY26.