Codan posts record FY26 revenue of $875 million as defence and gold detection surge
In its FY26 full-year investor presentation, released on 20 August 2026, Codan Limited (ASX: CDA) outlined record annual revenue of $875.0m, a 30% lift on FY25, alongside record profitability and a materially higher shareholder dividend.
The result was powered by Codan’s dual-engine model: its Communications segment, spanning defence and unmanned systems, and its Metal Detection segment, led by Minelab gold detectors. Management noted both EBIT and NPAT landed slightly above the guidance provided to the market on 29 April 2026.
Headline figures included EBIT of $244.1m (+67%), NPAT of $175.2m (+69%), and earnings per share of 96.5 cents (+69%). The Board declared a fully franked annual dividend of 48.5 cents, up 70% on FY25.
The presentation attributed the uplift to strong organic growth complemented by a full-year contribution from the Kägwerks acquisition, signalling earnings quality rather than one-off gains.
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FY26 financial results at a glance
The group financial scorecard reflected broad-based strength across both operating segments.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Total Revenue | $875.0m | $674.2m | +30% |
| Communications revenue | $506.2m | $413.5m | +22% |
| Metal Detection revenue | $362.0m | $254.8m | +42% |
| EBITDA | $288.9m | $183.7m | +57% |
| EBIT | $244.1m | $146.0m | +67% |
| NPAT | $175.2m | $103.5m | +69% |
The presentation detailed three primary revenue drivers:
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Ongoing high demand for unmanned systems
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New gold detector product launches
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Full-year contribution from Kägwerks
Group NPAT margin rose to 20.0% of revenue, up from 15.3%, which management attributed to product mix and continued improvement in operating leverage.
Communications powers ahead on defence and unmanned systems demand
Codan’s Communications segment stood out as the standout growth engine in FY26. Revenue of $506.2m landed slightly above the top end of its targeted FY26 15–20% range, driven primarily by strong demand for unmanned systems.
Management highlighted that defence customers now represent approximately 58% of total Communications revenue, up from 38% in FY25. Segment profit reached $156.0m (+45%), delivering a segment profit margin of 31%, which exceeded the company’s 30% FY27 target some 18 months early.
The Communications orderbook grew to $380m at 30 June 2026, a 50% increase on the prior year, supported by stronger order intake across both DTC and Zetron.
DTC — unmanned revenue more than doubles
The presentation detailed that DTC unmanned sector revenue more than doubled to approximately $215m versus the prior comparable period, with H2 seeing continued acceleration in orders from conflict regions and defence and security programs across the US and Europe.
DTC secured first orders for the sale of radios into multiple US military programs of record (PORs). The Adaptive Dynamics acquisition, completed in July 2026 for approximately $21m consideration (upfront plus contingent), is expected to strengthen DTC’s US-based capabilities in unmanned systems through anti-jamming and interference mitigation technology.
The Adaptive Dynamics IP spans land, maritime, and airborne defence domains, with anti-jamming and APNT technology covering interference mitigation and assured positioning across the full spectrum of contested electromagnetic environments DTC increasingly operates in.
Management referenced Codan’s UK, US and Australia presence as a strategic advantage in capturing long-term programs across the Five Eyes alliance and other NATO-aligned markets.
Zetron — orderbook rebuilds after slow start
Zetron was impacted in H1 FY26 by a temporary slowdown in US procurement and contracting cycles, with H2 revenue broadly in line with H1 (as guided in Codan’s 29 April 2026 trading update). Order intake strengthened towards the end of H2, delivering a 25% year-on-year increase in Zetron’s orderbook at 30 June 2026.
Key contract wins highlighted in the presentation included:
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$19m contract with one of the largest utilities on the US east coast
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$11m mission-critical services contract with the UK Emergency Services Network
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$8m radio communications modernisation for a major London underground transport provider
Minelab delivers record gold detector growth across Africa and beyond
Minelab’s FY26 performance was described as exceptional, with revenue of $362.0m (+42%) and segment profit of $162.4m (+65%). Segment profit margin lifted to 45%, up from 39% in FY25, reflecting revenue growth, product mix and operating leverage.
Africa was a standout, with revenue of $184m (+60%), driven primarily by the successful Gold Monster 2000 launch, which the presentation noted exceeded expectations. Rest of World revenue grew 32%, aided by strong take-up of the GPZ8000 and expanded retail presence in Australia and North America.
Minelab launched four new products in FY26 across gold, recreational and countermine markets: the flagship GPZ8000, Gold Monster 2000, Vanquish 60 and MDS-20. Management identified driving GPZ8000 adoption across Africa as a near-term priority, with training activities continuing in FY27 as awareness builds.
What is driving Codan’s dual-engine growth model
Codan operates across two core segments, each exposed to distinct end markets. Understanding this structure helps explain the quality-of-earnings argument at the heart of the FY26 result.
The Communications segment provides mission-critical defence communications and unmanned systems, including technology used with drones and unmanned aerial systems (UAS). This positions the business against a backdrop of rising global defence spend and force modernisation across Five Eyes and NATO markets.
The Metal Detection segment, operating as Minelab, is described as the largest handheld metal detection company in the world. It is exposed to gold prospecting demand, which is linked to precious-metal prices, alongside recreational and countermine markets.
The strategic significance lies in diversification. Earnings spread across defence, public safety and consumer markets reduce reliance on any single cycle, supporting a more predictable earnings base.
A stronger balance sheet built to fund future growth
Codan returned to a net cash position of $35.7m at 30 June 2026, versus net debt of $78.3m a year earlier, an improvement of $114.0m. The presentation attributed the swing to accelerated revenue growth in H2 FY26 and strong cash collections.
Operating cashflow of $241.8m funded dividends of $64.6m, engineering capex of $51.8m, and property, plant and equipment investment. FY26 engineering spend totalled approximately $78m, equating to around 9% of Group revenue, of which $51.8m was capitalised.
The company noted substantial funding capacity, including a $250m undrawn debt facility, with an additional $150m capacity subject to bank approval, positioning it to pursue inorganic growth opportunities.
Strategy in focus
Management framed the FY26 result within its “Building a Stronger Codan” strategy, centred on investing in people, process and systems, strengthening core businesses to improve quality of topline, and disciplined capital allocation toward acquisitions that create value.
FY27 outlook — management targets ~20% Communications revenue growth
Looking ahead, management described early H1 FY27 Communications trading as strong, with H1 FY27 expected to significantly exceed H1 FY26. Citing what the company termed “unprecedented levels of demand” primarily in unmanned systems, the Communications segment is currently targeting full-year FY27 revenue growth in the order of 20%, subject to related supply chain constraints.
The presentation reiterated Communications’ long-term sales growth target of approximately 10–15% per annum, which management noted can be exceeded. Minelab is expected to benefit from a full 12-month contribution from recently launched products. Its H2 FY26 average monthly run-rate of approximately $32m sat 15% above H1 FY26, with Africa and Rest of World tracking broadly in line with those H2 run-rates.
The company also noted an internal CFO transition to Kayi Li, effective 1 September 2026.
Management outlined key FY27 priorities by segment:
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DTC: integrate Adaptive Dynamics’ electronic warfare capability and expand the dismounted soldier ecosystem, including Kägwerks
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Zetron: expand recurring revenue via the SALUS platform and next-generation CAD
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Minelab: maximise new product rollouts and expand North America and Europe retail and eCommerce channels
The FY26 presentation set out a record year across revenue, profit and dividends, a balance sheet that returned to net cash, a Communications orderbook up 50%, and a management target of full-year FY27 Communications revenue growth in the order of 20%.
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