Codan (CDA) H2 2025 earnings summary

Executive summary

• Achieved group revenue of $674.2 million in FY 2025, up 22% year-over-year, driven by strong organic growth and acquisitions including Kägwerks.

• Net profit after tax rose 27% to $103.5 million, with all profitability metrics increasing year-over-year.

• Communications and Minelab/Metal Detection segments delivered double-digit revenue and profit growth, with significant margin expansion.

• Board declared fully franked annual dividends of $0.285, up 27% from the prior year.

• Strategic focus on sustainable growth, prudent acquisitions, and investments in people, processes, and systems to support future growth.

Financial highlights

• Communications revenue grew 26% to $413.5 million; segment profit up 34% to $108 million.

• Minelab/Metal Detection revenue increased 16% to $255 million; segment profit up 26% to $98 million.

• EBIT reached $146 million, up 28%; EBITDA was $183.7 million, up 25%.

• Group NPAT margin improved to 15.3% of sales from 14.8% year-over-year.

• $5 million in pre-tax, non-recurring acquisition and due diligence costs expensed.

Outlook and guidance

• Communications business targets 10%-15% annual sales growth, with FY 2026 guidance of 15%-20% growth and $155 million already secured in the order book.

• Four new Minelab products scheduled for FY 2026; continued expansion in North America, Europe, and strong demand in West Africa.

• Communications segment profit margin targeted at 30% by end of FY 2027, with linear margin expansion expected.