South Australian based Codan is forecasting a first-half profit of at least $160 million, up from $71.2 million in the same period in 2024/25 and close to its last annual profit of $175.2 million.
"Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments," it said on Tuesday.
Codon's shares spiked after the news and closed at an all time high of $64.02, up 23 per cent.
It didn't say where the orders are coming from, but the Russia-Ukraine conflict has escalated into a round-the-clock drone war, with Russia pounding its enemy's civilian infrastructure with new jet-powered drones and Ukraine retaliating with long-range drone strikes deep within Russian territory.
Between $400 million and $410 million of Codan's its interim revenue will flow from its communications division, up from $221.8 million a year ago, the electronics and engineering pioneer said.
Codan's communications division comprises Domo Tactical Communications and Zetron, both of which were acquired in 2021.Â
DTC's microwave technology allows drones or tactical teams to send secure, high-definition video feeds back to a command centre in real time, while Zetron sells communications infrastructure for command and control rooms.
Trading and order intake in both businesses continued to strengthen in the first quarter of 2026/27 and products are being sold at a profit margin of 40 per cent, up from 31 per cent last year.
Codan's Minelab metal detector business has also been performing strongly, driven by the high price of gold and a favourable launch for its two new detectors - one of which sells for around $15,000.
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