• Communications business expected to achieve revenue growth at top end of 15-20% range
• Communications segment profit margin to outperform 30% target, reaching 30% in FY26
• Minelab revenue tracking ahead of strong first-half performance

Codan Ltd has provided a trading update for FY26, indicating that the Group is trading above expectations in the second half of the financial year. The Communications business is expected to achieve revenue growth at the top end of the previously stated 15% to 20% range for the full year FY26, driven by strong demand from defence customers for unmanned systems and software-defined radios. Additionally, the Command-and-Control portion of the Communications business is now expected to deliver second-half revenue broadly in line with the first half of FY26. As a result of the strong revenue growth and operating leverage, Codan now expects the Communications segment profit margin to outperform the previously targeted 30% by the end of FY27, and instead achieve a 30% segment profit margin for FY26. This represents a significant improvement on the 26% segment profit margin achieved in FY25. Minelab revenue in the second half of FY26 is also tracking ahead of the strong first-half performance, supported by a favourable gold price and recent successful product releases. Due to the improved Communications revenue outlook and segment profit margin outperformance, Codan now expects Earnings Before Interest and Tax (EBIT) to be approximately $235 million and Net Profit After Tax (NPAT) to be approximately $170 million, representing an increase of over 60% for both measures versus FY25.

Codan expects Earnings Before Interest and Tax (EBIT) to be approximately $235 million and Net Profit After Tax (NPAT) to be approximately $170 million for FY26, representing an increase of over 60% for both measures versus FY25.