Highlights

  • Codan reported FY26 Revenue of A$875.0 million and net profit after tax of A$175.2 million.
  • Communications generated A$506.2 million of FY26 revenue and closed the year with a A$380 million orderbook.
  • The September 2026 update lifted FY27 Communications revenue growth expectations to 30%–40%.
  • First-half FY27 Communications revenue is expected at A$400–410 million, with group NPAT of at least A$160 million.
  • Supply-chain capacity, geopolitical Demand and Margin sustainability remain key execution variables.

Codan Limited (ASX:CDA) is an Australian technology company operating across metal detection and mission-critical communications. Its Minelab Business supplies metal detection products, while Communications provides radio, command-and-control and related systems for government, public-safety and unmanned applications. The company’s 2026 updates show Communications becoming a larger contributor to group earnings.

FY26 Earnings established a higher base

For the year ended 30 June 2026, Codan reported revenue of A$875.0 million, EBIT of A$244.1 million and net profit after tax of A$175.2 million. Earnings Per Share were 96.5 cents, while the full-year Dividend totalled 48.5 cents per share, fully franked. Communications revenue was A$506.2 million and segment profit was A$156.0 million at a 31% margin. Minelab contributed A$362.0 million of revenue and A$162.4 million of segment profit. Codan ended FY26 with net cash of A$35.7 million.

September update lifted Communications expectations

Codan’s 29 September 2026 trading update increased the expected growth rate for Communications. Management now expects FY27 segment revenue to rise by 30%–40%, compared with an earlier expectation of about 20%. First-half FY27 Communications revenue is expected at A$400–410 million, with an EBIT margin of around 40%. At group level, first-half net profit after tax is expected to be at least A$160 million. These figures are management guidance and remain dependent on order conversion and delivery timing.

Unmanned systems are reshaping the mix

The company attributed the uplift primarily to demand for unmanned systems. Codan expects conflict regions to account for about half of first-half Communications revenue, showing the extent to which current demand is linked to defence and security requirements. The segment also serves government and public-safety customers. This demand can support higher utilisation when orders accelerate, but it also increases exposure to procurement timing, export permissions and geopolitical conditions.

Minelab remains a second earnings engine

Minelab continues to provide a separate earnings stream through metal detection products used in gold prospecting, treasure detection and specialist applications. Codan said the division’s revenue run-rate entering FY27 was slightly above the second half of FY26, supported by products including the GPZ8000 and Gold Monster 2000. Demand remains influenced by gold-market conditions, consumer spending and geographic expansion. The contrast between Minelab’s higher margin and the faster-growing Communications business means product mix remains important to group profitability.

Supply chain and integration remain execution factors

Codan completed the Acquisition of Adaptive Dynamics in July 2026, adding anti-jamming and interference-mitigation capabilities relevant to unmanned systems. The company has also identified pressure in parts of the global electronics Supply chain. Component availability and production capacity can affect delivery timing even when customer orders are in place. The elevated first-half Communications margin also creates a higher comparison point for later periods, making margin retention an important issue as revenue expands.

Key Insights

Codan enters FY27 with a larger Communications order base, rising unmanned systems demand and guidance for a substantial first-half earnings increase. FY26 also shows that Minelab remains material, giving the group two distinct revenue drivers. The key questions are whether current Communications demand can be converted into deliveries without supply constraints, whether margins can be sustained, and how quickly demand normalises if procurement from conflict regions changes.