Codan Raises Communications Outlook as Unmanned Systems and Conflict-Region Demand Drive H1 FY27 Revenue Above $400 Million

Codan Limited (Codan) has issued a trading update for the first half of FY27, confirming that its Communications segment expects H1 FY27 revenue of between $400 million and $410 million. The company has also raised its full-year outlook for the segment, citing unprecedented demand, primarily for unmanned systems, and continued strengthening of order intake during the first quarter of FY27. Codan now has visibility of expected performance through to the end of Q2 FY27.

The revised H1 range compares with $221.8 million in the prior corresponding period (pcp) and $506.2 million for the whole of FY26. It follows guidance issued to the market on 20 August 2026, when Codan indicated that Communications revenue for the half would significantly exceed the pcp, with full-year growth targeted in the order of 20%, above the company's long-term sales growth target of 10% to 15%.

Outside conflict regions, Codan expects the Communications segment to deliver H1 FY27 revenue growth in the order of 20% against the pcp, in line with the August outlook. According to the company, growth is broad-based across regions and markets, which it says reinforces the global relevance of its technologies.

Demand from conflict regions is currently exceptionally strong, which Codan attributes to the proven performance and reliability of its technology in contested environments. The company expects conflict regions to account for approximately 50% of Communications segment revenue in H1 FY27, compared with approximately 20% in the pcp.

The elevated level and mix of demand is expected to generate significant operating leverage. Codan anticipates an H1 FY27 EBIT margin for the Communications segment in the order of 40%, compared with 26% in the pcp and 31% for full-year FY26.

Looking at the full year, Codan noted that current indications are that elevated order momentum in the Communications segment may continue into H2 FY27. It cautioned, however, that order visibility in conflict regions is low and that demand there is difficult to forecast beyond three months. It is therefore too early in the financial year to determine whether H1 demand and margin levels will be sustained in the second half. Balancing these factors, the company is targeting full-year FY27 Communications revenue growth in the range of 30% to 40% compared with FY26.

At Group level, Codan continues to seek ways to mitigate potential supply chain constraints arising from order momentum in both its Communications and Minelab businesses. Based on order visibility across Q2 FY27, and subject to final product mix and shipments, the company expects Group NPAT for H1 FY27 of not less than $160 million, compared with $71.2 million in the pcp and $175.2 million for full-year FY26.

The update underlines the scale of current demand for resilient, field-proven communications technology in unmanned and contested operating environments, and the extent to which conflict-region requirements are now shaping the revenue and margin profile of the segment.