Codan (CDA) H1 2026 earnings summary

Executive summary

• Group revenue reached $393.5 million for H1 FY26, up 29% year-over-year, with EBIT up 52% and NPAT up 55%, 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.

• CFO Michael Barton to retire after FY26, with a structured succession plan for Deputy CFO Kayi Li to ensure a smooth transition.

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

Financial highlights

• Revenue: $393.5 million, up 29% year-over-year; EBIT: $99.8 million, up 52%; NPAT: $71.2 million, up 55%.

• EBITDA reached $120.5 million (31% of sales), and EPS rose to 39.2 cents, up 54% year-over-year.

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

• Net debt at $88.2 million, leverage at 0.4x EBITDA, with $140 million undrawn debt facility and $150 million accordion capacity.

• Engineering investment of $35.8 million, about 9% of group revenue, with $24.9 million capitalized.

Outlook and guidance

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

• Metal Detection (Minelab) H2 revenue expected at least in line with strong H1, aided 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, with strong balance sheet capacity.

• Second-half performance expected to be at least in line with the strong first half.