Codan Limited (ASX:CDA): What Do FY26 Results and the FY27 Trading Update Reveal?

Aditi Sarkar

27 October 2026 10:21 PM AEDT

Codan Limited (ASX:CDA): What Do FY26 Results and the FY27 Trading Update Reveal?

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Highlights

Codan Limited (ASX:CDA) reported FY26 revenue of AUD 875.0mn, up 30% YoY.
FY26 EBIT increased 67% YoY to AUD 244.1mn, while NPAT reached AUD 175.2mn.
Communications FY26 revenue rose 22% YoY to AUD 506.2mn; its closing orderbook was AUD 380mn.
At its October AGM, Codan outlined H1 FY27 Communications revenue expectations of AUD 410mn–420mn.

Codan Limited manufactures communications systems and metal-detection equipment for defence, emergency-response and consumer markets. Its FY26 results and October AGM update reflect increased communications demand and detector sales. Codan Limited (ASX:CDA) outlined updated H1 FY27 earnings expectations alongside uncertainty about the persistence of conflict-region orders.

Company Business

Codan Limited (ASX:CDA) has two segments: Communications and Metal Detection. Communications includes DTC tactical radio and unmanned-system technologies, and Zetron mission-critical communications and control systems. Its customers include defence and emergency-service organisations across international markets.

Recent Development

Codan Limited (ASX:CDA) released FY26 results in August, updated H1 FY27 trading in September and revisited guidance at its October AGM. The company anticipated H1 FY27 Communications revenue of AUD 410mn–420mn, compared with AUD 221.8mn in H1 FY26, and an EBIT margin around 40%, versus 26% a year earlier.

Management targeted FY27 Communications revenue growth at the upper end of its 30%–40% range, but warned that limited visibility into conflict-region orders makes H2 FY27 demand and margins uncertain. Codan completed its Adaptive Dynamics acquisition in July and is integrating its anti-jamming technology into DTC.

Metal Detection benefited from demand for the GPZ 8000 and Gold Monster 2000. At the AGM, management indicated its H1 FY27 revenue run-rate was slightly above H2 FY26 levels, not yet a reported result.

Financial Performance and Sector Context

For the year ended 30 June 2026, Codan Limited (ASX:CDA) generated AUD 875.0mn in revenue, compared with AUD 674.2mn in FY25, a 30% YoY increase. EBITDA rose from AUD 183.7mn to AUD 288.9mn; EBIT increased from AUD 146.0mn to AUD 244.1mn. EBIT margin advanced from 21.7% to 27.9%. NPAT reached AUD 175.2mn, compared with AUD 103.5mn, an increase of 69% YoY.

Communications revenue increased from AUD 413.5mn to AUD 506.2mn, with segment profit reaching AUD 156.0mn. Its FY26 closing orderbook was AUD 380mn, up 50% from 30 June 2025. Metal Detection revenue rose from AUD 254.8mn to AUD 362.0mn, while segment profit increased to AUD 162.4mn from AUD 98.2mn. Minelab Africa revenue reached AUD 184mn, up 60% YoY, according to the AGM address.

At June 2026, Codan held net cash of AUD 35.7mn versus net debt of AUD 88.2mn at December 2025. Its October AGM identified an undrawn AUD 250mn debt facility and an additional AUD 150mn accordion option subject to approval. Management projected H1 FY27 group NPAT of at least AUD 162mn, versus AUD 71.2mn in H1 FY26, subject to product mix and shipments.

Risks to Consider

Codan Limited (ASX:CDA) faces limited order visibility in conflict regions, government procurement delays and acquisition-integration risks. Metal Detection remains exposed to detector demand and distribution conditions. Engineering costs, currency movements and supply chains can affect margins, while half-year forecasts remain subject to final shipments and product mix.

What to Watch Next

The H1 FY27 result will test Codan Limited (ASX:CDA)’s updated outlook. Investors may monitor Communications order conversion and margins, demand from conflict and non-conflict regions, Metal Detection sales, Adaptive Dynamics integration and any revision to full-year Communications targets.

Key Insights

Codan Limited (ASX:CDA) reported higher FY26 revenue and earnings in both reporting segments. The October update lifted near-term Communications expectations but emphasised uncertainty over second-half demand. Upcoming results will clarify order conversion, product mix, profitability and cash generation.

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