The Codan Ltd (ASX: CDA) share price is in focus today after the company delivered a 30% jump in annual revenue to $875 million and a 69% rise in net profit after tax to $175.2 million for FY26.
What did Codan report?
- Revenue up 30% to $874.97 million
- Net profit after tax (NPAT) up 69% to $175.18 million
- EBIT up 67% to $244.08 million
- Fully franked full-year dividend of 48.5 cents per share (up 70% on FY25)
- Net cash position of $35.7 million at 30 June 2026
- Earnings per share up 69% to 96.5 cents
What else do investors need to know?
Codan’s Communications business (including DTC and Zetron) reported revenue of $506.2 million, up 22%, with segment profit up 45% and margins beating long-term targets. The order book jumped 50% to $380 million, underpinned by momentum in unmanned radio systems and strong defence demand.
Minelab, the company’s Metal Detection division, achieved record results, with revenue rising 42% to $362 million and segment profit up 65%. New product launches, like the flagship GPZ8000 gold detector, helped drive growth, particularly in Africa and the rest of the world.
Codan also completed the acquisition of US-based Adaptive Dynamics after year-end, further strengthening its technical offerings for defence customers. Codan finished FY26 with a solid net cash position and significant undrawn debt facilities, giving the board flexibility for future investment and growth initiatives.
What’s next for Codan?
For FY27, Codan is targeting revenue growth of around 20%, supported by high defence spending and continued demand for both unmanned communications systems and advanced gold detectors. A full-year contribution from recently launched Minelab products and new client wins in Communications are expected to underpin momentum.
The company says it will continue investing in people, systems, and new product development, with an eye for further acquisitions aligned with its technology and market strategy. The board is optimistic about ongoing growth opportunities and plans to update investors further at the annual general meeting in October.
Codan share price snapshot
Over the past 12 months, Codan shares have surged 84%, significantly outpacing the S&P/ASX 200 Index (ASX: XJO).
The post Codan FY26: Profit surges 69% with higher dividend appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.