Codan (CDA) H1 2025 earnings summary

Executive summary

• Revenue grew 15% year-over-year to $305.6 million for H1 FY25, driven by strong organic growth in Communications.

• EBIT rose 21% to $65.8 million and NPAT increased 21% to $46.1 million, with EPS at 25.4 cents.

• A fully franked interim dividend of 12.5 cents per share was declared, up 19% year-over-year.

• Communications segment was the main growth driver, exceeding its 10–15% growth target.

• Four consecutive halves of sustainable growth and operational performance have been delivered.

Financial highlights

• Communications revenue rose 22% to $187.0 million; Metal Detection up 5% to $115.0 million, with Africa contributing $45 million.

• EBITDA increased 18% to $83.3 million, with EBIT margin and all profitability metrics improving year-over-year.

• Net debt increased by $48.7 million to $124.1 million, mainly due to the Kägwerks acquisition and higher working capital.

• Net debt-to-EBITDA ratio remains below 1x, reflecting financial discipline.

• Integration and acquisition expenses totaled $2 million in the half.

Outlook and guidance

• Communications segment targets organic revenue growth of 10–15%, with overall growth expected to exceed 15% including Kägwerks.

• If business conditions persist, Minelab's H2 revenues are expected to be similar to H1.

• Continued focus on strategic acquisitions to enhance revenue quality and predictability.