Highlights:

• Communications revenue expectations jumped as exceptional demand reshaped Codan’s first-half outlook.
• H1 FY27 Group profit guidance points to a substantial uplift from last year.
• Strong orders support higher FY27 growth, but second-half visibility remains a key uncertainty.

Codan Surges Among ASX 200 Leaders

Codan Limited (ASX: CDA) extended its rally on the Australian Securities Exchange after releasing an H1 FY27 trading update on 29 September 2026. The technology company was among the S&P/ASX 200’s top five gainers at the opening bell as investors reacted to sharply stronger Communications demand and an upgraded full-year outlook. Codan’s current market price (CMP) stood at AU$61.070, with the stock gaining approximately 17.46%.

Communications Business Accelerates

Codan expects its communications division to generate AU$400 million–AU$410 million in H1 FY27 revenue, compared with AU$221.8 million in the prior corresponding period. Demand linked to conflict regions has strengthened considerably and is expected to contribute around half of first-half Communications revenue, versus approximately 20% previously.  

The stronger sales mix is also expected to lift operating leverage. Codan forecasts an H1 FY27 Communications EBIT margin of around 40%, well above 26% in the comparable period and 31% for FY26.

Profit Expectations Rise Sharply

At group level, Codan expects H1 FY27 net profit after tax of at least AU$160 million, compared with AU$71.2 million a year earlier. Management is simultaneously working to mitigate potential supply-chain constraints arising from stronger order momentum across Communications and Minelab. 

Minelab has also started the half positively, supported by the recently introduced GPZ8000 and Gold Monster 2000 detectors, favourable gold prices and continued expansion across international markets.    

FY27 Outlook Strengthens, but Visibility Remains Limited

Codan now targets 30%–40% FY27 Communications revenue growth compared with FY26, reflecting continued strength in order momentum. However, management cautioned that visibility for conflict-region demand remains limited, making it difficult to determine whether first-half demand and margins will persist through H2 FY27.  

The sharp opening share-price reaction highlights the scale of the earnings upgrade. Going forward, order conversion, supply-chain execution and the durability of Communications demand will be central to whether Codan can sustain its stronger FY27 growth trajectory.

Note- All data presented is based on information available at the time of writing.

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