Codan Expects 1H FY27 NPAT of at Least $162 Million

Codan (ASX:CDA)'s AGM addresses restate the first-half FY27 outlook from its 29 September trading update and disclose that its CEO intends to sell part of his shareholding.

Codan currently expects first-half FY27 NPAT of not less than $162 million, compared with $71.2 million in first-half FY26 and $175.2 million in full-year FY26, based on order visibility and subject to final product mix and shipments. The Communications segment is expected to deliver first-half FY27 revenue of between $410 million and $420 million (first-half FY26: $221.8 million) at an EBIT margin in the order of 40%. For full-year FY27, Codan is targeting Communications revenue growth at the upper end of its previously announced 30% to 40% range. Minelab's first-half revenue run-rate is tracking slightly above second-half FY26 levels. At 30 June the company had net cash of $35.7 million and an undrawn $250 million debt facility. The chair said CEO Alf Ianniello intends to sell up to approximately 43,000 shares before the end of the calendar year to meet personal tax obligations and other commitments, and will retain approximately 177,000 shares. Codan also plans to tender its external audit in the second half of FY27.

Codan says order visibility in conflict regions is low and it is too early to determine whether first-half demand and margins will continue into the second half.