Codan Guides H1 FY27 NPAT Not Less Than $160m

Codan (ASX:CDA) updated H1 FY27 trading and its full-year Communications outlook after order intake strengthened in the first quarter, driven largely by demand from conflict regions.

The Communications segment is now expected to deliver H1 FY27 revenue of between $400 million and $410 million, compared with $221.8 million in the prior corresponding period and $506.2 million in full-year FY26. Codan expects a H1 FY27 EBIT margin for Communications in the order of 40%, compared with 26% in the pcp and 31% in full-year FY26. Outside conflict regions, Communications H1 revenue growth is expected in the order of 20% versus the pcp. Demand from conflict regions is expected to represent approximately 50% of Communications segment revenue in H1 FY27, versus approximately 20% in the pcp. Minelab's H1 FY27 revenue run-rate is now slightly above H2 FY26 levels. Based on order visibility across Q2 FY27, and subject to final product mix and shipments, Codan currently expects Group NPAT for H1 FY27 of not less than $160 million, versus $71.2 million in the pcp and $175.2 million in full-year FY26. Balancing elevated order momentum against low conflict-region visibility, Codan is currently targeting full-year FY27 Communications revenue growth in the range of 30% to 40% compared with full-year FY26.

The company says demand from conflict regions is difficult to forecast beyond three months, and it is too early to determine whether elevated H1 demand and margin will continue in H2 FY27.