Australian electronics maker Codan jumped to a record high on Tuesday after forecasting a sharp rise in first-half profit on booming demand for its defence communications equipment. The company expects group net profit after tax of at least A$160 million for the first half of fiscal 2027, more than double the A$71.2 million reported a year earlier.

Its communications division, which supplies battlefield communications and electronic warfare systems, is expected to generate revenue of A$400 million to A$410 million, up from A$221.8 million, with about half coming from conflict regions. Shares rose as much as 21.5 per cent to a record A$63.15, making Codan the best performer on the ASX 200.

The company said demand from conflict regions was exceptionally strong, reflecting the proven performance of its technology in contested environments. Its metal detection business, Minelab, is also performing well on the back of strong gold prices. Growing global defence spending amid geopolitical tensions has lifted the entire sector.