One of the best (and most enduring) growth stories on the ASX

Please note, this interview was recorded 19 February, 2026

I’ve been following the Codan (ASX: CDA) story for some time. I used to cover it as an analyst, beginning not long after the business acquired Minelab in 2008. It was affectionately known as the ‘metal detector’ business because of that acquisition, even though its core operation was – and remains – the communications division.

Having followed it for so long, I can confidently say it is one of the best and most enduring growth stories on the ASX. In 2010, the share price was hovering around $1.50. Today, it stands just shy of $35. That's good for a compound annual growth rate north of 20% - which is elite. 

But the share price is merely a reflection of the product development, commercialisation and acquisitions that the company has exectued on over that time.

So, it was a real treat to speak with CEO and Managing Director, Alf Ianniello, following the release of the company’s results yesterday. Ianniello has been a steward of Codan’s growth since January 2022 and, as he tells it, there remains plenty of opportunity ahead.

Watch the interview above for the full experience or read a summary below. 

INTERVIEW SUMMARY

Delivering growth and leverage

Codan’s latest result was solid by any measure, but for Managing Director and CEO Alf Ianniello, two numbers stand above the rest.

“One thing we have done well over a period of time is the growth rates at Codan. So the 28% growth rate at a group level I think is highly important. And then secondly, the operating leverage, growing 28%, but translating that to a mid-50s EBIT and NPAT return is a good result.”

It is that conversion, revenue growth flowing through to materially higher earnings, that underscores the scalability of the model. Investors often look for growth, but durable growth paired with operating leverage is what compounds value.

Scaling a global business

Over the past four years, Codan has transformed in size and scope. Ianniello frames the next chapter as one focused internally, ensuring the business can keep pace with its own success.

“We’ve gone from 250 people four years ago to over a thousand. So that’s where a lot of the work and the improvement cycle needs to be over the next 12 to 18 months.”

Codan has been acquisitive and increasingly global. The challenge now is to ensure agility and scalability as the business integrates acquisitions and expands its international footprint.

At the same time, Ianniello points to the company’s rise in market capitalisation as a defining milestone.

“When you’ve got a market cap, you’ve got optionality. You’ve got optionality to do a lot of things. So it’s a great reflection on the business that all the strategies come together.”

Optionality, in this context, means strategic flexibility, the ability to invest, acquire and allocate capital from a position of strength.

The metric that matters: pipeline and order book

While analysts tend to focus on headline earnings, internally Codan is watching something else closely.

“I really look at the activity levels in pipeline generation that translates to order book, that gives us elements of visibility moving forward.”

For a listed business, forward visibility is critical. Pipeline development feeds the order book, which in turn provides confidence in future revenue streams. It is this forward view, rather than backward-looking metrics, that informs management decision-making.

Commercialising innovation

Codan’s ability to take ideas from concept to market remains a core competitive strength.

“One of the great superpowers of Codan, it’s the ability to get an idea and commercialise it and sell it and have that technological moat around us.”

That strength was on display in the half. The release of the new Gold Monster 2000 metal detector has been met with strong customer feedback, while upgraded software-defined radios targeting the unmanned market have positioned Codan as a key supplier into that segment.

The emphasis is not simply on innovation, but on innovation that translates into revenue and defensible market positioning.

Communications: consistent and accelerating

Communications remains the group’s largest segment by revenue and continues to benefit from global defence spending tailwinds. For FY26, Codan is targeting 15 to 20% revenue growth in the division.

“We’ve been very, very consistent either achieving the top end of that or overachieving.”

Historically, management targeted 10 to 15% growth. The step up this year reflects both organic momentum and the contribution from a recent acquisition.

“I think 10 to 15% is a great growth rate. I think 15, 20% is even a better one. But the number one thing that we’ve done really well is the consistency in hitting those ranges.”

That consistency, rather than the absolute number in any given year, appears to be the guiding principle.

Minelab: more than just the gold price

The metal detection business, Minelab, also delivered a strong half. While record gold prices in West Africa have helped, Ianniello is clear that internal execution is equally important.

“Our recreational market’s grown high teens in a flat consumer market. So that means our go-to-market strategies are working, our product development is working, our e-commerce is working.”

Product performance underpins Minelab’s dominant position. Strong releases, combined with favourable market conditions, set the business up for a solid second half and into FY27.

Capital allocation: invest and acquire

With the balance sheet in robust health, Codan retains flexibility.

“We’re big investors in R&D and we continue to do that. Secondly, we’ve been very acquisitive. We’ve had seven acquisitions in the last four years.”

The focus remains squarely on communications assets in the northern hemisphere, targets that either enhance product roadmaps or strengthen market share.

“Not always easy to land one, but we are working diligently to get appropriate acquisitions in place.”

For investors, the takeaway is straightforward. Codan is growing strongly, converting that growth into earnings, and positioning itself for sustained expansion through disciplined capital allocation and consistent execution.