Codan Limited (ASX: CDA) has published a robust first-half FY26 trading update, indicating increased demand in all its core business segments. For the half year that ended on December 31, 2025, group revenue is to the tune of about $394 million.
Thus showing an increase of 29% when compared to the previous period, and the underlying net profit after tax is expected to be at least $70 million, which is a growth of about 52% over the previous period.
All these figures are still preliminary, unaudited, and will undergo the group’s auditor’s review; meanwhile, the performance was supported by the excellent results in metal detection as well as the ongoing trend in communications.
 
Codan posts strong first-half growth driven by global demand. (Source: Sequoia Direct)
What Is Driving Metal Detection Revenue Expansion?
Metal detection caused the Company to earn about $168 million during the first half of FY26, which is an increase of nearly 46% when compared to the previous period.
African markets were mainly responsible for the growth in gold detector sales, while sales of recreational metal detectors in other global regions formed a part of the creators of the market, with double-digit growth in comparison with the previous period already passed.
There was support for volume growth in the way of constant product demand and better market penetration, plus the strong regional distribution, from which could be extracted the overall sales performance was also a contributing factor.
Metal Detection Strength Supports Earnings Growth
The increase in profits during the period resulted from higher sales volumes and a favourable product mix, while operational efficiency also contributed to the improved margins.
The combination of these factors reinforced Codan’s financial performance and established the segment as a primary source of earnings for the group.
African gold detector sales remain a major growth engine. ( Source: MiningMetal News)
How Did The Communications Segment Perform?
The communications segment attained revenue of around $222 million in H1 FY26, which is an approximation of 19% increase from the prior corresponding period.
This growth rate is consistent with Codan’s prediction of a performance that is the highest end of the 15% to 20% growth target range, and this is mainly due to the continual demand from the military, emergency services, and industries that want communication solutions that are secure and reliable.
Communications Revenue Provides Stability
Order pipelines that are stable and long-term contracts have thus offered strong revenue visibility, reducing the earnings volatility that comes with more cyclical markets. The communication sector is therefore still capable of delivering a steady income while helping the entire group to grow.
Emergency services demand support for consistent growth. (Source: Grand View Research)
What Does The Codan Trading Update Mean For Investors?
Codan’s trading update shows that there is a lot of operating momentum that has been built up and is being carried over into the second half of FY26; profit growth is strengthening cash generation and balance sheet capacity.
When the Company announces its complete first-half FY26 results on 19 February 2026, investors will be paying attention to the margin trends, movements in working capital and forward guidance as this will give a deeper understanding of the sustainability of the current growth levels.
Outlook Depends On the Global Market Conditions
Gold market activity, defence spending cycles, and infrastructure investment trends will still drive future performance, while at the same time, currency movements may affect profits in different regions. Codan’s diverse worldwide presence might be a factor to mitigate the fluctuations in demand in different regions and eventually lead to the Company’s growth in various markets.
Investors await February results for clearer forward guidance. (Source: The Economic Times)
How Is Codan Positioned For Long-Term Demand?
Codan is the maker of technology solutions that are mainly for communications, safety, security, and productivity in very rough operating environments all over the world.
Continuous investment in research and product development is a way of maintaining reliability, increasing customer retention, and sales opportunities, whereas geographic diversification in Africa and other areas is a way of bolstering long-term resilience to market volatility.
The Company also indicated that the revenue disclosed includes around $4 million from the old Minetec business, which gives more insight for making comparisons between the periods. The growth outlook for Codan’s medium-term is still supported by the strategic execution across both operating segments.
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FAQs
Q1: What period does the Codan trading update cover?
A1: It covers the half-year ended 31 December 2025, and all figures are preliminary and unaudited.
Q2: How much revenue did Codan Limited ASX generate in the first half of FY26?
A2: Group revenue is expected to be approximately $394 million, representing 29% growth over the prior corresponding period.
Q3: Which segment delivered the strongest growth?
A3: Metal detection delivered the strongest growth, with revenue of about $168 million, up approximately 46% over pcp.
Q4: When will Codan release full FY26 half-year results?
A4: Codan will release its full first-half FY26 results on 19 February 2026.
