Codan (CDA) H1 2025 earnings summary

Executive summary

• Group revenue rose 15% year-over-year to $305.6 million for H1 FY25, driven by strong organic growth, especially in Communications.

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

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

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

• Kägwerks acquisition completed for $36.1 million, supporting Communications growth.

Financial highlights

• Communications revenue grew 22% to $187.0 million; Metal Detection up 5% to $115.0 million year-over-year.

• EBITDA increased 18% to $83.3 million; EBIT margin improved due to operating leverage.

• 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.

• Earnings per share rose 21% to 25.4 cents; all profitability metrics improved year-over-year.

Outlook and guidance

• Communications segment targets organic revenue growth of 10–15%; with Kägwerks, full-year growth expected to exceed 15%.

• If current conditions persist, Minelab (metal detection) H2 revenues expected to be similar to H1.

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