Codan FY26 presentation: profit surges 69% on defence, detector demand

Codan Limited, an Australian technology group, announced impressive FY2026 results on August 20, 2026, with profit surging 69% driven by defense and detector market demand. Revenue reached $875.0 million, a 30% increase from the previous year, validating the company's strategy of diversifying earnings through organic growth and acquisitions.

EBIT grew 67% to $244.1 million, while net profit after tax climbed 69% to $175.2 million, surpassing guidance. The company declared a 70% increase in annual dividends, fully franked. Operations exhibited improved leverage, with the NPAT margin expanding to 20.0% of revenue. Revenue growth was broad-based, with Communications up 22% to $506.2 million and Metal Detection up 42% to $362.0 million.

Underlying net profit after tax continued its growth trajectory, with the second half contributing significantly compared to the first. Expenses increased due to targeted investments, but were offset by revenue growth and improved product mix, leading to substantial margin expansion. Codan's balance sheet strengthened, with a $114.0 million improvement in net position.

The dividend increase and robust cash flow allowed for capital investments in product development. The Communications division showed strong growth, driven by unmanned systems demand and defense customer revenue, with orders increasing by 50%. The acquisition of Adaptive Dynamics further bolstered the company's financial position and growth prospects.