What Did Codan (ASX:CDA) Say in Its H1 FY27 Trading Update About Communications Demand?

Sonal Goyal

21 October 2026 04:53 PM AEDT

What Did Codan (ASX:CDA) Say in Its H1 FY27 Trading Update About Communications Demand?

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Key highlights

Codan expects H1 FY27 Communications Revenue of $400–410 million, compared with $221.8 million in the prior corresponding period.
Group NPAT for H1 FY27 is expected to be not less than $160 million, versus $71.2 million in the pcp.
Full-year FY27 Communications revenue growth is now targeted at 30% to 40%, with the company noting low order visibility in conflict regions.

During the Trading session on 21 October 2026, Codan Ltd (ASX:CDA) was priced at $62.00, down 0.71%. The S&P/ASX 200 Info Tech [XIJ] traded at 1,614.00 (−3.38%, −56.50 points) and the S&P/ASX 200 [XJO] at 8,811.10 (−0.066%, −5.80 points) at 3:12 pm GMT+11. In US trading on Tuesday, the Dow rose 1.02% to 52,495.88 and the S&P 500 added 0.28% to 7,712.57, while the Nasdaq Composite eased roughly 0.02% to 26,424.82 as some large technology names declined on a reassessment of valuations and coming earnings. Codan is an Australian technology company with a Communications segment and the Minelab metal detection business.

What Codan does

Codan Limited is a technology company that develops communications, safety, security and productivity solutions for customers working in demanding environments. It operates two main segments: Communications, which includes products used in unmanned systems and other critical communications, and Minelab, which makes metal detectors used by gold prospectors, treasure hunters and humanitarian demining users.

In FY26 the Communications segment generated $506.2 million of revenue and the group reported NPAT of $175.2 million.

H1 FY27 Communications update

In an ASX release dated 29 September 2026, Codan provided a trading update for the first half of FY27. It referred to its 20 August 2026 advice that demand, primarily for unmanned systems, together with order momentum, would lift Communications revenue well above the prior corresponding period. Trading and order intake continued to strengthen in Q1 FY27 and the company now has visibility on expected performance through Q2.

Codan expects H1 FY27 Communications revenue of between $400 million and $410 million, compared with $221.8 million in the pcp. Outside conflict regions, it expects growth of about 20% versus the pcp. Revenue from conflict regions is expected to be about 50% of segment revenue, up from about 20% in the pcp.

Margin and Group profit expectations

The company expects the higher Volume and mix of Demand to generate significant operating leverage, with a Communications H1 EBIT Margin in the order of 40%, compared with 26% in the pcp and 31% for FY26. Based on order visibility across Q2, and subject to final product mix and shipments, Codan expects Group NPAT for H1 FY27 of not less than $160 million, compared with $71.2 million in the pcp.

Minelab and Supply chain

Minelab had a steady start to H1 FY27, driven by demand for the recently launched GPZ8000 and Gold Monster 2000 detectors, a favourable gold price and expansion in its Rest of World business. Its H1 revenue run-rate is slightly above H2 FY26 levels. Codan said it continues to look for ways to mitigate potential supply chain constraints arising from order momentum in both segments.

Full-year FY27 outlook

Codan said that current indications are that elevated order momentum in Communications may continue into H2 FY27, but that order visibility in conflict regions is low and it is too early to determine whether the H1 demand and margin will persist. It is targeting full-year FY27 Communications revenue growth of 30% to 40% versus FY26.

Sector context

Technology shares are being assessed against Earnings and valuations. During the session, the S&P/ASX 200 Info Tech index was at 1,614.00, down 3.38%, and the broader S&P/ASX 200 was at 8,811.10. In the United States, the Nasdaq is described as sensitive to corporate earnings and forward guidance and to artificial intelligence infrastructure spending. Defence and unmanned-systems communications demand has been linked to conflict regions in Codan’s update, while Minelab’s results are tied to the gold price and consumer demand.

Risks and uncertainties

Codan states that demand from conflict regions is difficult to forecast beyond three months and that it is too early to determine whether H1 levels will continue. Concentration of about 50% of segment revenue in conflict regions, supply chain constraints, product mix and shipment timing, gold price movements and currency can all affect outcomes. The H1 figures are expectations rather than final results.

Catalysts to watch

Items to watch include Codan’s H1 FY27 result, further order intake updates, supply chain developments, the trend in Minelab revenue and any change to the 30% to 40% Communications growth target.

Wrapping up

Codan’s 29 September 2026 update set out higher expected revenue, margin and NPAT for H1 FY27, while cautioning about low visibility in conflict regions. The formal half-year result will give the final figures.

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