The Codan Ltd (ASX:CDA) share price is in focus today after the company posted a half-year revenue increase to $393.5 million, up 29% over the prior period, alongside NPAT growth of 55% to $71.2 million and a fully franked interim dividend of 19.5 cents per share.
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What did Codan report?
- Group revenue rose 29% to $393.5 million
- Net profit after tax (NPAT) up 55% to $71.2 million
- Earnings before interest and tax (EBIT) increased 52% to $99.8 million
- Earnings per share jumped 54% to 39.2 cents
- Interim dividend of 19.5 cents per share, fully franked – up 56%
- Orderbook in Communications segment up 19% to $294 million
What else do investors need to know?
Codan's Communications division experienced revenue growth of 19% to $221.8 million and maintained profit margins despite some temporary headwinds in the Zetron Americas business. Its DTC unit saw strong demand from the defence and unmanned systems sector, especially for technologies suited to contested environments.
The Metal Detection (Minelab) business delivered a standout half, with revenue up 46% and segment profit up 86% thanks to gold detector demand in West Africa and robust sales globally. Minelab also continued to invest in new products, launching several detectors and signalling more to come.
Codan's balance sheet remains healthy, with net debt at $88.2 million and significant undrawn facilities providing flexibility for future acquisitions and investment.
What did Codan management say?
Managing Director & CEO Alf Ianniello said:
Codan has delivered another strong financial result for the first half of FY26, with Group revenues growing 29% to $394 million, and both EBIT and NPAT up by more than 50% versus the first half of FY25. The Group's performance reflects disciplined execution of our strategic plan, favourable market conditions in key regions, and the benefits of our diversified technology portfolio.
What's next for Codan?
Codan expects underlying demand in both Communications and Metal Detection to remain strong, targeting growth in its technology-driven segments. The company plans to continue investing in engineering and new product development to sustain its competitive edge and is open to strategic acquisitions to diversify its earnings base.
Leadership changes are on the horizon, with long-serving CFO Michael Barton set to retire in August 2026, to be succeeded by Deputy CFO Kayi Li. Codan is ensuring a smooth transition, with continued support from Barton throughout the following year.
Codan share price snapshot
Over the past 12 months, Codan shares have risen 102%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
