Business · Companies · 1 hr ago
Codan lifts first-half profit outlook on strong drone demand
Australian company Codan raised its first-half earnings outlook again after an earlier upgrade in late September.
It now expects revenue of $410 million to $420 million and net profit of at least $162 million.
That profit forecast is more than double the $71.2 million it made in the same half a year earlier.
Demand for unmanned systems in conflict areas is driving the stronger outlook, while Codan expects its communications business outside those areas to grow by about 20%.
The company says it is too early to know whether conflict-zone demand and profit margins will stay high in the second half.
Codan is targeting communications revenue growth at the upper end of its 30% to 40% range for FY27, compared with FY26.
The outlook matters because the company says orders in conflict regions are difficult to predict, so the current surge may not last.
Codan raised its first-half FY27 revenue outlook to $410 million-$420 million and said net profit would be at least $162 million.
Chief Executive Officer Alf Ianniello attributed the upgrade to strong demand for the company’s drone technology.
The new forecast is above an outlook issued in late September, which projected first-half revenue of $400 million-$410 million and net profit of $160 million.
Codan said communications sales momentum may continue into the second half, but visibility of orders in conflict regions is low.
The company is targeting full-year FY27 communications revenue growth at the upper end of its previously announced 30%-40% range.
- Who
- Codan Ltd, whose Chief Executive Officer is Alf Ianniello.
- What
- Codan raised its first-half FY27 revenue and profit outlook. It expects revenue of $410 million-$420 million and net profit of at least $162 million.
- When
- Ianniello announced the updated outlook at the company’s annual general meeting on Tuesday. The article was published on October 20, 2026.
- Where
- The announcement was made at Codan’s annual general meeting; the location is not stated.
- Why
- Codan cited strong demand for drone technology, including demand for unmanned systems in conflict areas.
This story does not have two clearly opposing sides.
Codan projected first-half revenue of $400 million-$410 million and net profit of $160 million.
Ianniello told Codan’s annual general meeting that the company expected first-half revenue of $410 million-$420 million and net profit of at least $162 million.
- First-half FY27 revenue outlook
- $410 million-$420 million
- First-half FY27 net profit outlook
- At least $162 million
- Previous first-half FY27 revenue outlook
- $400 million-$410 million
- Previous first-half FY27 net profit outlook
- $160 million
- FY27 communications revenue growth target
- Upper end of the previously announced 30%-40% range compared with FY26
What people are saying
unprecedented levels and pace of demand for unmanned systems in conflict areas
it is too early to determine whether the elevated demand and margin experienced in first-half FY27 will continue in second-half FY27
This investment ensures the Group remains at the forefront of innovation and product development, supports our competitive positioning and drives our organic growth strategy.