Stealth Group Holdings has delivered preliminary unaudited FY26 results showing record performance across all key metrics, with sales reaching $165 million (+13.7%), revenue of $146 million (+5.8% like-for-like), EBITDA of $14.3 million (+44.4%), and NPAT of $5.8 million (+87.1%). The results, reported after 48 weeks of trading, demonstrate the operating leverage flowing through from the Company’s acquisition-led growth strategy following the HBT purchase.
EBITDA margin expanded to 8.7%, representing a 170 basis point improvement. Management attributes the earnings growth to organic initiatives and HBT integration synergies flowing through across four key drivers: transferred subsidiaries consolidated into HBT for efficiency, optimised procurement leverage and supplier terms, volume-led rebates and service-related fees, and enhanced productivity through streamlined back-office systems.
| Metric | FY26 Result | Growth | Context |
|---|---|---|---|
| Sales | $165.0m | +13.7% | Record annual performance |
| Revenue (like-for-like) | $146.0m | +5.8% | Organic growth sustained |
| EBITDA | $14.3m | +44.4% | Integration synergies realised |
| NPAT | $5.8m | +87.1% | Near-doubling of bottom line |
| EBITDA Margin | 8.7% | +170bps | Structural margin expansion |
The near-doubling of NPAT demonstrates operating leverage kicking in as integration synergies flow through. Margin expansion from acquisitions and organic initiatives signals sustainable earnings quality improvement, with the Company converting revenue growth into accelerated profit growth.
HBT acquisition transforms Stealth into Australia’s leading independent hardware distributor
Stealth completed the acquisition of Hardware & Building Traders (HBT) in November 2025 for $22 million. HBT is Australia’s largest privately owned membership-based buying group, serving independent hardware and building supply stores.
The transaction brought approximately 1,165 independent member stores and 490 preferred suppliers into Stealth’s network. HBT contributed FY25 revenue of $6.9 million and normalised EBITDA of $3.7 million.
Stealth’s record half-year results, reported in February 2026, established the earnings trajectory that the full-year FY26 preliminary figures have now confirmed, with NPAT up 51.4% at the half driven by the same HBT integration synergies now flowing through at scale.
The acquisition transformed Stealth’s national scale. The Company’s store network expanded from 32 to approximately 1,200 stores, whilst suppliers increased from 800 to 1,300. HBT opened new category exposures across hardware, timber, building supplies, paint, garden and landscape, plumbing, rural and pet.
Platform metrics pre- and post-HBT:
- Branches (company-owned): 10 → 8
- Member stores: 22 → 1,200+
- Retail resellers: 3,500+ (maintained)
- Suppliers: 800 → 1,300
- Team members: ~250 (maintained efficiency)
The acquisition positions Stealth as the leading independent alternative to the major players in the Australian hardware, industrial, safety and consumer products markets. The membership-based buying group model generates recurring revenue streams with high visibility, providing a platform for sustained earnings growth.
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What is a buying group and why does HBT matter for Stealth?
A membership-based buying group allows independent retailers to pool their purchasing power, negotiating better supplier terms, accessing exclusive products, and competing more effectively with larger chains. Individual stores maintain independence whilst benefiting from the collective scale.
HBT operates as Australia’s largest privately owned buying group serving independent hardware and building supply stores. Members pay fees to access centralised procurement, supplier rebates, exclusive product ranges, and shared services. HBT negotiates terms with suppliers on behalf of its member network.
The combination with Stealth’s existing distribution capabilities creates procurement leverage across both wholesale distribution (through the Heatleys business) and retail membership (through HBT). Stealth now operates a dual model: direct wholesale distribution to trade customers and businesses, plus a membership platform serving independent retailers.
HBT members now have access to Stealth’s exclusive product lines, creating cross-selling opportunities across the 1,200-store network. The buying group generates revenue through member fees, supplier rebates, and centralised services — multiple recurring income streams that underpin earnings visibility.
Integration synergies already flowing through to earnings
Management outlined four key drivers delivering earnings growth:
- Transferred Stealth subsidiaries with similar activity into HBT for efficiency
- Consolidated procurement leverage and optimised supplier terms
- Volume-led rebates and service-related fees
- Enhanced productivity, efficiency and streamlined back-office systems
The integration is progressing at pace, with multiple workstreams already completed and further synergy opportunities underway.
| Initiative | Status |
|---|---|
| Systems integration | Completed |
| Supplier integration | Completed |
| Member engagement | Completed |
| Procurement initiatives | Active |
| Cross-selling programmes | Active |
| National account opportunities | Active |
| HBT trade account | Active |
| HBT member purchasing growth | Active |
| Exclusive products & own private-label brands | Active |
The completion of core integration workstreams — systems, supplier relationships, and member engagement — signals strong execution capability. Active workstreams represent further upside not yet fully reflected in the FY26 preliminary results, with management expecting a “significant step change” in FY27.
New distribution deals and marketplace launches expand revenue channels
Stealth has secured multiple strategic wins since the 1H26 period, diversifying revenue channels beyond traditional wholesale distribution.
The Company secured two new Australian territory exclusive distribution agreements with global consumer retail brands: Panzer Glass (June 2026) and Tech21 (May 2026). These agreements provide exclusive rights to distribute premium consumer products across Australia.
In Q4 FY26, Stealth expanded its exclusive product range into 42 hardware retail stores, including CAT, Harden Tools, and RIVO safety products. Sales contribution in FY26 was minimal due to the late timing, but management expects an uplift in FY27 and beyond as the rollout matures.
Recent marketplace and distribution initiatives:
- February 2026: Launched on Woolworths online marketplace
- May 2026: Secured exclusive Australian distribution for Tech21
- June 2026: Launched on Amazon marketplace; secured exclusive Australian distribution for Panzer Glass
- Q4 FY26: Expanded exclusive product range into 42 hardware stores
- 1H26: Completed JB Hi-Fi marketplace launch
Management expects the online marketplace presence to deliver more than $10 million in incremental sales by the end of FY28. The three marketplace launches — JB Hi-Fi, Woolworths, and Amazon — provide direct-to-consumer channels that reduce customer concentration risk and open new revenue streams beyond the Company’s traditional wholesale and retail network.
Four strategic pillars underpin the pathway to $500 million sales
Stealth’s growth strategy is underpinned by four strategic pillars:
- Products & Categories
- Stores & Distribution Networks
- Value-Added Solutions
- Procurement Scale
Within these pillars, management has identified specific growth drivers targeting incremental sales opportunities:
- HBT Trade Account: Centralised invoicing, member services, and supplier services driving recurring revenue
- HBT Member Purchasing Growth: Volume-led expansion and deeper customer offering across the 1,200+ member network
- Channel & Customer expansion: Organic growth and market share gains across existing and new customer segments
- Exclusive & Own brands including Tool Hire: Product and category expansion across the Group’s store network
- Logistics & Distribution: Centralised warehousing and hub fulfilment centres improving operational efficiency
- Network Expansion: Growth in company-owned stores, retail resellers, and HBT members
These initiatives collectively represent a sales opportunity exceeding $400 million, providing visibility toward the Company’s FY28 target. Multiple independent growth levers reduce reliance on any single driver, with each pillar contributing to the pathway from current sales of $165 million to the $500 million target.
FY28 target of $500 million sales and 8–12% EBITDA margin on track
Management reaffirmed the medium-term target of $500 million in annual sales with an EBITDA margin of 8–12% by FY28. The Company expects FY27 to represent a “significant step change” in sales, revenue and EBITDA compared to FY26 preliminary results.
The step change is expected to be driven by the first full year contribution from HBT, continued organic growth across the core business, and further realisation of synergies from the integration workstreams currently active.
| Year | Sales | EBITDA Margin |
|---|---|---|
| FY25 | $145m | 6.9% |
| FY26 estimate | $165m | 8.7% |
| FY28 Target | $500m | 8–12% |
Following the successful completion of a $19.5 million capital raising in December 2025, Stealth has a strong balance sheet and working capital position to support its FY28 organic growth plan across the four strategic pillars.
The 3x sales growth target from the current base represents transformational scale. EBITDA margin expansion from 6.9% to 8–12% would compound earnings growth beyond revenue growth, with the funded balance sheet removing near-term capital raise overhang.
CEO Mike Arnold on Stealth’s position in a $120 billion market
Mike Arnold, Group Managing Director & CEO
“The preliminary FY26 unaudited result reflects another year of strong earnings contributions, reflected by strong operational performance, productivity improvements, operating efficiencies and the successful integration of HBT. The integration is progressing at pace, with multiple initiatives completed and further synergy and growth opportunities underway. The acquisition of HBT has transformed Stealth’s scale, market reach and growth profile, establishing the Company as Australia’s leading independent distributor and retailer and the leading independent alternative to the major players in the Australian hardware, industrial, safety and consumer products markets. The opportunities ahead of us are substantial. We remain focused on executing our four strategic growth pillars; products & categories, stores & distribution networks, value-added customer solutions and procurement scale to capture market share across Australia’s highly fragmented $120 billion hardware, industrial, safety and home improvement sectors.”
Stealth operates across hardware, home improvement and living, building supplies, industrial maintenance, repair and operations (MRO), and safety categories. The Company’s addressable market is valued at approximately $120 billion, providing a long runway for growth as an independent alternative to major players including Bunnings and Metcash.
Market fragmentation creates consolidation opportunities for a scaled independent player. Stealth’s positioning combines national distribution reach through 1,200+ stores, procurement scale across 1,300 suppliers, and exclusive product access through its distribution and buying group platform — capabilities that position the Company to capture share in a highly fragmented market.
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