Codan surges as FY26 profits outpace market expectations
Codan (ASX:CDA) has issued a bullish FY26 trading update, revealing that the group is currently outperforming market expectations during the second half of the financial year.
The Adelaide-based technology company attributed this momentum to a surge in demand across its core communications and Minelab divisions, bolstered by a favourable macroeconomic environment and heightening geopolitical tensions.
The communications segment has emerged as a primary growth engine, with management now projecting full-year revenue to hit the "top end" of its initial 15% to 20% guidance range.
The acceleration is largely driven by the DTC business, which is seeing a spike in orders for software-defined radios from defence customers seeking advanced unmanned systems.
Meanwhile, the Zetron command-and-control arm remains stable, tracking in line with its strong first-half performance.
Due to effective operating leverage, Codan now expects to reach its 30% segment profit margin target a full year ahead of schedule.
This marks a leap from the 26% margin recorded in FY25.
The Minelab division continues to thrive, with second-half revenue already eclipsing a record-breaking first half.
