Codan (CDA) H2 2025 earnings summary

Executive summary

• Group revenue reached $674.2 million in FY 2025, up 22% year-over-year, driven by strong organic growth and the Kägwerks acquisition.

• Net profit after tax rose 27% to $103.5 million, with all profitability metrics increasing versus FY24.

• Communications and Metal Detection/Minelab segments delivered double-digit revenue and profit growth, with expanding orderbooks and new product launches.

• Fully franked annual dividend increased 27% to 28.5 cents per share.

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

Financial highlights

• EBIT rose 28% to $146.0 million; EBITDA was $183.7 million, up 25% year-over-year.

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

• Metal Detection/Minelab revenue increased 16% to $254.8 million; segment profit up 26% to $98.2 million.

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

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

Outlook and guidance

• Communications 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 Africa.

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

• Favourable macroeconomic conditions, especially in West Africa, expected to support growth.

• Positive outlook underpinned by strong orderbooks and new product launches.