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.

• High-quality growth in Communications and exceptional performance in Metal Detection, especially in Africa.

• CFO Michael Barton to retire after FY26; Deputy CFO Kayi Li to succeed, ensuring a structured 12-month transition.

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

Financial highlights

• Group revenue reached $393.5 million, up 29% year-over-year, driven by organic growth and full contribution from Kägwerks.

• EBIT increased 52% to $99.8 million; NPAT rose 55% to $71.2 million; EPS up 54% to 39.2 cents.

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

• Gross margins rose 58%; NPAT margin improved to over 18%.

• Net debt at $88.2 million, leverage at 0.4x EBITDA; undrawn debt facility of $140 million plus $150 million accordion capacity.

Outlook and guidance

• Communications revenue growth expected within 15%-20% target range for FY26, supported by defense spending and Kägwerks contribution.

• Minelab H2 revenue expected at least in line with strong H1, supported by favorable gold prices and new product launches.

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

• Continued investment in engineering and readiness for future acquisitions.

• The group expects second-half performance to be at least in line with the first half.