Codan (CDA) H1 2026 earnings summary

Executive summary

• Group revenue rose 29% year-over-year to $393.5 million, with EBIT up 52% and NPAT up 55% to $71.2 million, reflecting strong organic growth and a full first-half contribution from the Kägwerks acquisition.

• Both Communications and Metal Detection segments delivered robust growth, with Metal Detection particularly strong due to gold detector demand in Africa and new product launches.

• Interim dividend declared at 19.5 cents per share, fully franked, up 56% year-over-year.

• Continued investment in people, processes, and systems to support future growth initiatives.

• CFO Michael Barton will retire after FY26, with Kayi Li named as successor, ensuring a smooth transition and continuity in financial leadership.

Financial highlights

• Revenue: $393.5 million (up 29% year-over-year), driven by organic growth and full-period Kägwerks contribution.

• EBIT: $99.8 million (up 52% year-over-year); NPAT: $71.2 million (up 55%); EPS: 39.2 cents (up 54%).

• Gross margins increased 58%; NPAT margin improved to 18.1%.

• Fully franked interim dividend of 19.5 cents per share, up 56% from prior period.

• Net debt at $88.2 million, with leverage at 0.4x EBITDA and significant undrawn debt facilities.

Outlook and guidance

• Communications expected to deliver FY26 revenue growth within 15–20% target range, supported by strong demand and Kägwerks.

• Metal Detection (Minelab) H2 revenue expected to be at least in line with H1, supported by favorable gold prices and new product launches.

• Focus remains on margin expansion in communications, targeting 30% by FY27.

• Positive market conditions anticipated in both core segments.

• Continued investment in engineering and technology leadership, with capacity for further acquisitions.