Key Highlights

  • Codan reported FY26 revenue of $875.0 million, up 30%, with net profit after tax of $175.2 million, up 69%.
  • Communications revenue was $506.2 million and Metal Detection revenue was $362.0 million.
  • Net cash was $35.7 million at 30 June 2026, and the FY26 fully franked dividend was 48.5 cents per share.

Codan Ltd (ASX:CDA) shares were priced at $62.75 during the trading session on 19 October 2026, down 0.24%. Codan is an Australian technology company with a Communications segment, which includes the DTC and Zetron businesses, and a Metal Detection segment operated under the Minelab brand. On 20 August 2026, the company released its FY26 results announcement covering group financials, segment performance, the balance sheet, FY27 commentary and a CFO transition. The price data relates only to the 19 October 2026 session and is separate from the date of the release.

Group results for the year ended 30 June 2026

Codan reported revenue of $875.0 million, up 30% on the prior corresponding period (FY25: $674.2 million). EBITDA was $288.9 million and earnings before interest and tax were $244.1 million, up 67%. Net profit after tax was $175.2 million, up 69%, and basic earnings per share were 96.5 cents.

The company described both EBIT and NPAT as slightly above guidance issued on 29 April 2026. A fully franked dividend of 48.5 cents per share was declared for the year, comprising an interim dividend of 19.5 cents and a final dividend of 29.0 cents, compared with 28.5 cents in FY25.

The company reported net cash of $35.7 million at 30 June 2026, compared with net debt of $88.2 million at 31 December 2025. Funding capacity includes a $250 million debt facility and a further $150 million accordion subject to bank approval.

Communications segment

Communications revenue was $506.2 million, up 22%, compared with a FY26 target range of 15% to 20%. Segment profit was $156.0 million, up 45%, at a 31% margin, and the orderbook was $380 million at 30 June 2026, up 50% on a year earlier. Defence customers accounted for 58% of segment revenue, up from 38% in FY25.

Within DTC, revenue from unmanned systems was approximately $215 million, more than double the prior corresponding period. In July 2026 Codan completed the acquisition of Adaptive Dynamics, a US-based engineering company focused on anti-jamming and interference mitigation. Zetron was affected by slower US federal procurement in the first half, and its orderbook rose 25% year on year by 30 June 2026.

Metal Detection segment

Metal Detection revenue was $362.0 million, up 42%, with segment profit of $162.4 million, up 65%, at a 45% margin. The company launched four products during the year, including the GPZ8000 gold detector, the Gold Monster 2000, the Vanquish 60 and the MDS-20.

Revenue in Africa rose about 60% to approximately $184 million, and revenue in the rest of the world rose 32%. The release also notes that Minelab's second-half average monthly revenue run-rate was about $32 million, 15% higher than the first half.

Sector backdrop

Codan sits at the intersection of defence and public safety communications and consumer and professional metal detection. Companies in these markets are influenced by government procurement cycles, defence spending priorities and, for gold detectors, commodity price conditions. The release refers to elevated defence spending, geopolitical tensions and a favourable gold price as part of current market conditions, and notes that some constraints are emerging in parts of the global electronics supply chain. ASX-listed hardware-oriented technology companies are often compared by orderbook, margin and the share of revenue from government customers.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

  • The company notes emerging constraints in parts of the global electronics supply chain and says the FY27 revenue growth target is subject to related supply chain constraints.
  • Defence customers made up 58% of Communications revenue, so procurement timing and government budget decisions can influence results, as seen in Zetron's first-half slowdown in US federal contracting.
  • Metal Detection results are linked to demand for gold detectors, and the release cites a favourable gold price as part of current conditions.
  • Expenses increased during the year because of investment in go-to-market resources, product launches, systems and higher performance-related remuneration.
  • The company states that acquisitions are part of its strategy, and acquisitions can bring integration and funding considerations.

What's next

The release says the Board will provide a further business update at the Annual General Meeting on 20 October 2026. For FY27, the company expects first-half Communications revenue to significantly exceed the first half of FY26 and is targeting full-year FY27 revenue growth of about 20%, subject to supply chain constraints. Michael Barton's retirement as CFO takes effect on 31 August 2026, when Kayi Li assumes the role. The company also said it will continue to pursue acquisitions that fit its product and technology roadmaps.