Codan’s strong trading update today has taken the market by surprise and sent the shares up over 18% this morning. The outlook for FY26 looks to be stronger than analysts were expecting (consensus FY26 NPAT of $136 million) with underlying 1H26 NPAT now expected to be at least $70 million, up 52% on pcp. This is great news for shareholders. However, I think the shares are looking expensive at over $37 per share and I will likely sell a few more. I’ve been saying Codan is expensive for a while now but the share price just keeps finding new highs!

Trading Update

Codan expects its group revenue for the first-half of FY26 to be approximately $394 million* which represents growth of 29% over the prior corresponding period (pcp). Underlying net profit after tax is expected to not be less than $70 million, representing growth of approximately 52% over pcp. These results for the first-half of FY26 were underpinned by outstanding results achieved by the metal detection business and ongoing strong performance in the communications segment.

Metal detection delivered revenue of approximately $168 million which is growth of ~46% over pcp.

This growth was primarily achieved by gold detector sales in the African region, and metal detector sales in other key rest of world recreational markets achieved double-digit growth for the half versus pcp.

The communications segment achieved revenue of approximately $222 million which is growth of ~19% over pcp. This rate of growth is consistent with our stated expectation of growth at the upper end of the 15% to 20% growth target range for the first-half of FY26.

Codan will release its FY26 first-half results on 19th February 2026.

*includes ~$4m in revenue from legacy Minetec business.

Held IRl (8.5%), SM (25%)