Business · Markets · 2 days ago
Codan forecasts higher first-half revenue and profit as demand rises
Codan, an Australian technology company, makes military communications equipment and metal detectors.
It expects communications revenue of $400 million to $410 million in the first half of FY27, up from $221.8 million a year earlier.
The company says demand from conflict regions is exceptionally strong, and expects those regions to generate about half of communications revenue in the period.
Its metal-detection business is also performing well, helped by demand for new detectors.
Codan expects first-half net profit to exceed $160 million, compared with $71.2 million in the same period last year.
Broker Canaccord Genuity believes Codan could outperform full-year expectations, but the company says it is too early to know whether conflict-related demand and margins will stay at similar levels in the second half.
That uncertainty matters because the recent surge in demand is linked to conflicts, whose duration and effects on sales are difficult to predict.
Codan expects first-half FY27 revenue in its Communications segment of $400 million to $410 million.
The company forecasts first-half net profit above $160 million, up from $71.2 million in the same period of FY26.
Codan said demand from conflict regions was exceptionally strong and could account for about half of Communications revenue in the first half.
Canaccord Genuity said Codan’s full-year expectations may be conservative, citing the possibility of further upgrades or results above consensus.
Codan’s Minelab metal-detection division is also expected to slightly exceed its second-half FY26 revenue.
- Who
- Codan Ltd, an Australian technology company.
- What
- It forecast higher first-half FY27 revenue and net profit, citing strong demand.
- When
- First half of FY27. The article was published on 9 October 2026.
- Where
- Not stated
- Why
- Codan said demand from conflict regions was exceptionally strong, while Minelab was seeing strong demand for new detectors.
This story does not have two clearly opposing sides.
Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments.
and accordingly it is too early in the financial year to determine if demand and margin will continue at similar levels in H2 FY27.
We believe Codan is well placed to beat full year expectations, with management's conservative second half conflict region assumptions likely to prove too cautious given no end in sight to conflicts such as Ukraine.
Codan upgraded its outlook, forecasting Communications revenue of $400 million to $410 million and first-half net profit above $160 million.
Canaccord Genuity said Codan’s full-year expectations may be conservative.
- Communications revenue forecast
- $400 million to $410 million in H1 FY27
- Group net profit forecast
- More than $160 million in H1 FY27
- Conflict-region share
- Approximately 50% of Communications revenue in H1 FY27, compared with approximately 20% in the prior corresponding period
- Communications revenue comparison
- $221.8 million in the prior corresponding period; $506.2 million for full-year FY26
- Minelab outlook
- Expected to slightly exceed its revenue from the second half of FY26
- Codan valuation
- $11.9 billion at the time of writing
Sources
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