Codan Surges 24% to Record High: What the Profit Upgrade Means for Investors

CDA has witnessed massive growth in the past one year, which is driven by the geopolitical tensions across the world.

Codan Limited (ASX: CDA) announced on 29 September 2026 that its Communication segment has continued to show strength during the first quarter of FY27, with an expected first half  revenue growth of 20% compared to the previous corresponding period. The expected revenue for the communication segment is around $400-410 million for the first half, with an expected EBIT margin of 40%. The metal detection segment also had a great start, with the revenue run-rate being slightly above the levels of H2 FY26.

Based on the order visibility in Q2 FY27, the company expects NPAT for the first half of more than $160 million, which is slightly below the NPAT of full FY26.

 FY26 Results

The company’s performance for FY26 remained outstanding, with total revenue of $875 million, showing a 30% growth compared to the previous year. EBITDA increased by 67% to $244.1 million, with net profit after tax of $175.2 million. The Communication segment remained the major contributor with revenue of $506.2 million and segment profit growth of 45% to $156.6 million. The Metal Detection segment also showed great momentum, with a 42% increase in revenue to $362 million, which indicates a successful year for the company.

 Segment Information

Codan’s Communication segment deals in the development and sale of mission-critical communication and radio technology, which broadly includes tactical radios, software-defined radios, and specialised communication systems. The segment’s growth is driven by ongoing geopolitical tensions and increased defence budgets across countries. It has also gained traction from the increased use of drones and unmanned systems, along with the modernisation of public safety communication infrastructure.

The company’s Metal Detection segment is operated through Minelab, which focuses on the development and sale of handheld metal detectors, primarily for gold prospecting, recreational metal detecting, demining and military markets. Demand for gold detectors has been supported by the increase in gold prices, along with the company’s new product launches. The company also focuses on recreational metal detecting, a market that continues to grow gradually.

Collectively, both these segments have contributed to the strong momentum in the company’s stock price, with the shares surging by more than 120% over the past year, supported by strong earnings growth, increased demand for its communication technologies, and positive growth expectations.

Conclusion

Codan Limited has a market capitalisation of $11.74 billion with a fully franked dividend yield of 0.75%. Its ROE for FY26 stood at 30.94%, which indicates impressive returns. However, the growth seems to be highly driven by geopolitical tension across the globe, leading to increased defence budgets for the countries. These uncertainties and global disruptions also led to an increase in gold prices which primarily drove the growth for its metal detection segment. Although the uncertainties seems to continue in the near-term which might support its growth but the company’s ability to retain revenue level after a possible stability remains a key factors to watch in the medium-term.

(Source: Company Announcements)