Codan Limited (ASX: CDA) posted a 69% increase in full-year net profit to $175.2 million for the fiscal year ended June 30, 2026, driven by robust demand in defence communications and gold detection equipment.
Group revenue rose 30% to $875.0 million, while earnings before interest and tax climbed 67% to $244.1 million. The net profit margin expanded to 20.0% from 15.3% a year earlier. The company declared a fully franked dividend of 48.5 cents per share, a 70% increase on the prior year’s 18.5 cents.
The Communications segment, which includes tactical communications and unmanned systems, generated revenue of $506.2 million, up 22% year-over-year. Segment profit rose 45% to $156.0 million, with the profit margin reaching 31%, surpassing the FY2027 target of 30% by 18 months. Defence-related revenue accounted for approximately 58% of the segment’s total, up from 38% in FY2025. The orderbook stood at $380 million as of June 30, 2026, a 50% increase from the prior year.
The Metal Detection segment reported revenue of $362.0 million, a 42% rise, with segment profit up 65% to $162.4 million. The segment’s profit margin improved to 45% from 39% in FY2025. Revenue growth was particularly strong in Africa, where sales reached $184 million, a 60% increase versus FY2025. Minelab’s average monthly run-rate in the second half of FY2026 was approximately $32 million, 15% higher than the first half.
Codan’s balance sheet strengthened, with net debt of $78.3 million at June 30, 2025, transitioning to a net cash position of $35.7 million a year later. Operating cash flow totalled $241.8 million, while dividends paid amounted to $64.6 million. Engineering capital expenditure reached $78 million, or 9% of group revenue, with 75% allocated to Communications and 25% to Metal Detection.
Management highlighted disciplined execution of the company’s strategic plan as a key driver of the performance. Codan operates in more than 150 countries, employs over 1,100 people globally, and maintains a presence in 11 key markets, with engineering roles accounting for more than 30% of its workforce.
For FY2027, Codan targets full-year revenue growth of around 20%, supported by sustained demand for unmanned systems and continued expansion in core markets.
