Key Highlights

  • Revenue rose 30% to A$875.0 million for the year to 30 June 2026.
  • EBIT rose 67% to A$244.1 million, and NPAT rose 69% to A$175.2 million.
  • The NPAT Margin improved to 20.0% from 15.3%.
  • The full-year Dividend rose to 48.5 cents per share from 28.5 cents.

What happens when a defence communications supplier and a gold-detector maker both have an encouraging year at the same time? Codan Limited (ASX:CDA) answered that on 20 August 2026, when it reported FY26 Revenue of A$875.0 million, up 30%, and net profit after tax (NPAT) of A$175.2 million, up 69%. The result matters because Codan's two businesses, Communications and Metal Detection (Minelab), are driven by very different customers, yet both expanded sharply. It also raises the question of how durable the gains are, given exposure to defence Demand and African gold prospecting.

What Codan does

Codan, based in Adelaide, has two main segments. Communications builds radio and communications equipment through its DTC and Zetron businesses. DTC covers tactical and unmanned-systems communications for defence customers; Zetron supplies mission-critical communications to emergency services and utilities. Metal Detection is Minelab, a maker of metal detectors used by hobbyists, prospectors and humanitarian and security users. Its sales are especially tied to gold prospecting in Africa.

The FY26 result

For the year ended 30 June 2026, compared with FY25:

Revenue A$875.0 million, against A$674.2 million (up 30%).

EBITDA A$288.9 million, against A$183.7 million (up 57%).

EBIT A$244.1 million, against A$146.0 million (up 67%).

Net profit before tax A$236.2 million, against A$133.9 million (up 76%).

NPAT A$175.2 million, against A$103.5 million (up 69%), a margin of 20.0% against 15.3%.

Earnings per share of 96.5 cents (up 69%).

A fully franked final dividend taking the annual total to 48.5 cents per share, against 28.5 cents (up 70%).

The company says EBIT and NPAT were slightly above the guidance given on 29 April 2026. Expenses rose from go-to-market hiring, product launches, systems Investment and higher performance-related pay. Engineering spend was about A$78 million, roughly 9% of revenue, of which A$51.8 million was capitalised.

Communications

Communications revenue was A$506.2 million, up 22% and slightly above the top of the 15% to 20% target range. Segment profit was A$156.0 million, up 45%, at a 31% margin. Defence made up about 58% of segment revenue, up from 38%. DTC's unmanned systems revenue more than doubled to about A$215 million, and it secured initial orders for radios on US military programs of record.

Zetron had a slower first half because of a temporary slowdown in US procurement. Its orderbook was up 25% year on year by June 2026, with wins including a A$19 million US Utility contract and an A$11 million UK emergency services contract. The segment's orderbook was about A$380 million at 30 June 2026, up 50% year on year, with about A$255 million scheduled for FY27. An orderbook is contracted work not yet delivered, so it gives visibility but not a guarantee of timing.

Metal Detection (Minelab)

Minelab revenue was A$362.0 million, up 42%, and segment profit was A$162.4 million, up 65%, a 45% margin against 39% in FY25. Africa revenue rose 60% to A$184 million, and revenue elsewhere rose 32%. Four products launched during the year: the GPZ8000, Gold Monster 2000, Vanquish 60 and MDS-20.

Balance sheet and cash

Codan moved from net Debt of A$78.3 million at 30 June 2025 to net cash of A$35.7 million at 30 June 2026. The presentation notes an improvement of A$123.9 million from net debt of A$88.2 million at 31 December 2025. Net Assets were A$608.4 million, up from A$523.8 million. Liquidity includes a A$250 million undrawn debt Facility with a further A$150 million available subject to bank approval.

In July 2026 Codan completed the Acquisition of Adaptive Dynamics for about A$21 million, including upfront and contingent consideration. Kayi Li formally transitioned to the chief financial officer role on 1 September 2026.

FY27 outlook

The company's stated expectations, which are not results, are:

Communications: a Long-term Growth target of about 10% to 15% a year, with the first half of FY27 expected to significantly exceed the first half of FY26, and full-year FY27 revenue growth currently targeted at about 20%, subject to Supply chain constraints.

Minelab: the second-half FY26 average monthly revenue run-rate was about A$32 million, 15% above the first half, with Africa and the rest of the world tracking broadly in line with that run-rate.

Competitive position

In tactical communications, Codan competes with larger defence electronics groups, and its niche is software-defined radios and unmanned-systems communications. In metal detection, Minelab is among the best-known global brands. Because FY26 NPAT jumped 69% from a base that included lower margins, comparisons with FY25 flatter the growth rate, and the FY27 targets are the better reference.

Risks and what to watch

The presentation has no dedicated risk section, so these are drawn from its content:

Supply chain: constraints could limit the 20% Communications growth target.

Concentration: about 58% of Communications revenue is defence, and unmanned systems have grown quickly from a small base.

Africa dependence: Africa is roughly half of Metal Detection revenue.

Procurement timing: the US slowdown that affected Zetron shows how timing can shift.

Forecasts: the company notes forward-looking statements may differ materially from actual outcomes.

Developments to watch include delivery of the A$255 million of Communications orders scheduled for FY27, the first-half FY27 result, which the company expects to be significantly higher than the previous first half, further US programs of record for DTC, Minelab's monthly run-rate against the A$32 million second-half FY26 level, and the integration of Adaptive Dynamics.