Codan Posts AUD 674 Million Revenue, 27% Profit Rise and Dividend Boost

Strong Financial Momentum

Codan Limited (ASX – CDA) has reported a year of solid financial growth for the full year ended 30 June 2025, with revenue climbing 22% to AUD 674.2 million and net profit after tax increasing 27% to AUD 103.5 million. This performance reflects the company’s successful execution of its growth strategy amid a challenging global environment.

The Communications segment, which includes the recently acquired Kägwerks business, was a standout contributor, delivering a 26% increase in revenue to AUD 413.5 million and a 34% rise in segment profit to AUD 107.9 million. The segment’s order book expanded by 28% to AUD 253 million, providing a strong foundation for FY26.

Growth Drivers in Communications and Metal Detection

Within Communications, the DTC business capitalised on growing global defence spending, particularly in unmanned systems, doubling its revenue to approximately AUD 100 million. The acquisition of Kägwerks has enhanced Codan’s military communications portfolio, strengthening its position in the U.S. defence market and aligning with the Nett Warrior Program.

The Metal Detection segment, led by Minelab, also posted impressive results with revenue up 16% to AUD 254.8 million and segment profit increasing 26% to AUD 98.2 million. Growth was supported by strong demand in Africa and the launch of new products like the Gold Monster 2000, positioning the business for continued momentum.

Balance Sheet Strength and Dividend Increase

Codan’s balance sheet showed marked improvement, with net debt reduced by AUD 45.8 million to AUD 78.3 million, reflecting strong cash generation and disciplined working capital management. The company secured a renewed and expanded banking facility of AUD 250 million, extending maturity to 2028 and providing flexibility for future acquisitions.

Reflecting the strong financial results, Codan declared a fully franked final dividend of 16.0 cents per share, bringing the total dividend for FY25 to 28.5 cents, a 27% increase over the prior year. The dividend record date is set for 3 September 2025, with payment scheduled for 17 September 2025.

Executive Remuneration Aligned with Performance

Codan’s executive remuneration framework continues to align leadership incentives with shareholder value creation. Short-term incentives (STI) and long-term incentives (LTI) are linked to key financial metrics including revenue growth, profitability, cash flow, earnings per share (EPS) growth, and relative total shareholder return (RTSR). The FY23 LTI plan did not vest due to EPS targets not being met; however, performance rights tied to the Communications division’s strong financial results will fully vest in August 2025.

Looking ahead, Codan remains focused on innovation, expanding its product pipeline, and pursuing strategic acquisitions to sustain growth. The company’s robust financial position and renewed credit facilities position it well to capitalize on emerging opportunities in defence communications and metal detection markets.