ASX 200 stock Codan, soars on profit update
Codan shares surged over 16% by afternoon trade on Friday as investors reacted positively to its FY26 first-half trading update which pointed to phenomenal earnings growth and massive demand across key operating segments.
Codan shares surge 16% as profit update signals strong FY26 growth
Codan Limited (ASX: CDA)
on 9 January 2026 announced that it expects first half FY26 group revenue of around $394 million which represents 29% year-on-year growth while underlying net profit after tax is expected to be at least $70 million.
This excellent performance was driven by the metal detection business which generated $168 million in revenue and grew by 46% year-on-year due to strong gold detector demand in Africa.
The communications segment also delivered a solid outcome as it recorded around $222 million in revenue which grew by 19% and sits at the upper end of the company’s stated 15% to 20% growth target for the first half of FY26.
During FY25, Codan completed the acquisition of Kagwerks which strengthened its presence within the US defence ecosystem and improved its positioning in secure communications.
The communications segment also secured several long-term contracts including major public safety, utility and defence-related agreements across the US, Europe and Asia Pacific.
Codan ended FY25 with a net debt of $78.3 million helped by $45.8 million reduction in debt during the second half of the year.
Minelab is positioned for incremental growth with four new detector launches planned but the full revenue contribution from these products is expected to be more meaningful in FY27.
Codan plans for organic growth through sustained investment in research and development with around 10% of revenue directed towards engineering and product innovation.
Within communications, management aims for margins of 30% by the end of FY27 by leveraging operating scale, software-led solutions and recurring services revenue.
Management highlighted that a strong balance sheet, diversified end markets and rising exposure to supported sectors such as defence and gold detection place the group in a solid position for FY26 and beyond.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
