Codan Limited’s shares rose 11.8% on Tuesday after the Australian defense and detection technology group posted a 69% increase in full-year net profit, outpacing its own guidance and lifting its stock to within 1% of its 52-week high.
The company reported net profit after tax of AUD 175 million for the year ended June 30, up from AUD 104 million a year earlier, while revenue climbed 30% to AUD 875 million. Earnings before interest and tax rose 67%, slightly above the guidance provided on April 29, 2026. Net profit margins expanded to 20%, a five-percentage-point increase from FY2025.
Codan’s cash position strengthened significantly, ending the period with AUD 36 million in net cash, a AUD 124 million improvement from a net debt position of AUD 88 million at the end of December 2025. The group maintains an undrawn debt facility of AUD 250 million, with an additional AUD 150 million in accordion capacity subject to bank approval.
The Communications segment, which contributed 58% of total revenue, posted a 22% rise in revenue to AUD 506.2 million and a 45% increase in segment profit to AUD 156 million. Defense customers accounted for 58% of communications revenue, up from 38% in FY2025, while the order book expanded 50% year-on-year to AUD 380 million as of June 30. Revenue from unmanned systems more than doubled to approximately AUD 215 million, with forward visibility estimated at four to six months.
Minelab, Codan’s metal detection division, reported a 42% revenue increase to AUD 362 million, with segment profit up 65% to AUD 162.4 million. Africa revenue surged 60% to AUD 184 million, while the segment’s margin reached 45%, up from 39% in FY2025. The group launched several new products in FY2026, including the GPZ 8000 gold detector and the VANQUISH 60, with the Minelab business starting FY2027 at a monthly revenue run rate of AUD 32 million.
Codan also announced a fully franked final dividend of AUD 0.29 per share, bringing the full-year dividend to AUD 0.485 per share, a 70% increase from FY2025. The company has paid dividends for 23 consecutive years.
Management highlighted ongoing engineering investments totaling AUD 78 million during the half, representing about 9% of group revenue, as a key driver of growth and product leadership. The company completed the acquisition of Adaptive Dynamics in late July 2026.
Codan’s shares closed at AUD 48.61, up AUD 5.13, after earlier touching AUD 48.99, its highest level since mid-2025.
