Codan Limited posted a sharp rise in full-year profit for FY2026, with revenue up 30% to AUD 875 million and NPAT up 69%. The company's stock jumped 11.8% to $48.61, moving close to its 52-week high. Management said the company's results came in slightly ahead of its own guidance, helped by strong demand in unmanned systems and metal detection, a better product mix, and stronger operating leverage.
The company delivered one of its strongest years in recent memory, with growth coming from both of its main businesses. The Communications division benefited from higher demand for unmanned systems, especially in defense markets, while Minelab gained from new gold detector products and a favorable gold price backdrop.
Strong Growth Outlook
Codan said its Communications business is targeting about 20% revenue growth in FY2027, with the first half expected to be significantly stronger than the first half of FY2026. Management expects margins in the low 30% range and said it is not resetting its 30% profit margin target.
The company's strong profitability is reflected in its 57% gross profit margin and 24% return on equity. Chief Executive Alf Barbosa said the company's performance was driven by its product portfolio and long-term growth opportunities. 'The strength of our differentiated technology and product portfolio and our ability to capitalize on long-term structural growth opportunities across our target markets globally underpinned our outstanding performance,' he said.
