Highlights

  • Codan (ASX:CDA) reported a 69% increase in FY26 net profit after tax.
  • Revenue increased 30% to A$875.0 million during the year.
  • Defence communications and metal detection businesses both delivered strong growth.
  • The company increased its Dividend by 70% to 48.5 cents per share.

Codan (ASX:CDA) delivered a strong FY26 performance, supported by higher Demand across defence communications and metal detection markets. The company’s shares were trading at AUD 49.02, up 0.29% on 21 August 2026.

The company’s latest results highlighted significant Earnings growth, improved Balance Sheet strength and continued momentum across its two major Business segments.

For investors assessing Codan (ASX:CDA), the key areas of focus remain defence demand, order book conversion, Acquisition strategy and sustainability of earnings growth.

What is happening with Codan?

Codan designs and manufactures technology solutions across communications, defence electronics and metal detection markets.

The company’s FY26 results represented a strong operating year, with both major divisions contributing to growth.

The Communications division benefited from increased defence demand, while Metal Detection continued gaining from strong customer activity in global gold detection markets.

Latest company developments

Codan reported FY26 Revenue of A$875.0 million, increasing 30% compared with the previous year.

Net profit after tax increased 69% to A$175.2 million, while EBIT increased 67% to A$244.1 million.

EBITDA reached A$288.9 million, representing a Margin of 33.0%, compared with 27.2% previously.

The company increased its full-year dividend by 70% to 48.5 cents per share fully franked.

The Communications division generated revenue of A$506.2 million, up 22%, with segment profit increasing 45% to A$156.0 million.

Defence customers represented 58% of Communications revenue, while the division’s order book increased 50% to A$380 million.

Revenue from unmanned systems approximately doubled to around A$215 million.

The Metal Detection division recorded revenue growth of 42% to A$362.0 million, while segment profit increased 65% to A$162.4 million.

Codan ended FY26 with net cash of A$35.7 million, compared with net Debt of A$88.2 million at the end of 2025.

The company also completed the acquisition of US-based anti-jamming specialist Adaptive Dynamics in July 2026, expanding its electronic warfare capabilities.

What do the numbers say?

Codan’s FY26 results demonstrated significant operating leverage, with earnings growing faster than revenue.

A 30% increase in revenue translated into a 69% increase in NPAT, highlighting improved margins and stronger operating efficiency.

The Communications division has increasingly shifted towards defence-related demand, with defence customers accounting for more than half of segment revenue.

The A$380 million order book provides future revenue visibility, although timing of defence contracts remains dependent on procurement cycles.

The Metal Detection division continues to contribute strongly, with revenue and profit growth demonstrating continued demand for Minelab products.

The company’s move into a net cash position provides additional flexibility for acquisitions and further capability expansion.

The increase in dividend payments reflects management confidence in the sustainability of current earnings levels.

What could drive the shares from here?

Continued defence order growth remains a key potential driver for Codan (ASX:CDA).

Expansion of the A$380 million Communications order book and further growth in unmanned systems could support future earnings.

Additional acquisitions similar to Adaptive Dynamics may provide further technology capabilities and market expansion opportunities.

In Metal Detection, continued product innovation and sustained demand from gold detection customers could support ongoing performance.

Long-term growth opportunities in electronic warfare, anti-jamming technology and defence communications provide additional strategic potential.

Risks investors should watch

Defence revenue can be uneven due to government procurement cycles and timing of large contracts.

Although the order book provides visibility, it does not guarantee immediate revenue recognition.

Metal Detection performance remains exposed to changes in global gold exploration and informal Mining activity.

Acquisition integration risk remains relevant as Codan expands through strategic purchases.

Currency movements may affect results due to the company’s international operations.

Following strong share price performance, investor expectations remain elevated, increasing the impact of any future earnings slowdown or guidance adjustment.

Investor takeaway

Codan (ASX:CDA) delivered a strong FY26 result, supported by defence communications growth, resilient metal detection demand and improved financial strength.

The company achieved record revenue, a significant increase in profit, a higher dividend and a transition to a net cash position.

The key factors ahead include defence order conversion, unmanned systems growth, acquisition integration and the sustainability of current earnings momentum.