Stealth delivers record FY26 with sales up 13.8% and NPAT surging 86%
Stealth Group Holdings (ASX: SGI) has reported record full-year results for the year ended 30 June 2026, marking its twelfth successive year of sales growth alongside a clear inflection point in profitability as the business scales.
Record sales reached $165.1m, up 13.8% year-on-year, while statutory EBITDA climbed 46.2% to $14.4m. Statutory net profit after tax (NPAT) surged 86.3% to $5.8m, and earnings per share (EPS) lifted 56.7% to 4.12 cents.
The standout achievement was the transformational acquisition of Hardware & Building Traders (HBT), which the company integrated during the year to convert network scale into recognised revenue.
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FY26 financial results at a glance
The full-year numbers show growth across every headline metric, with the most notable movement in profitability. The EBITDA margin expanded from 6.8% to 8.7%, reflecting operating leverage as the business grows.
It is worth noting that “Sales” is a non-IFRS measure, where trade rebates are added back to Revenue. This figure of $165.1m should not be conflated with Statutory Revenue of $146.0m.
| Metric | FY2026 | FY2025 | Variance % |
|---|---|---|---|
| Sales | $165.1m | $145.1m | 13.8% |
| Statutory Revenue | $146.0m | $141.7m | 3.0% |
| Statutory EBITDA | $14.4m | $9.9m | 46.2% |
| EBITDA % of sales | 8.7% | 6.8% | 28.5% |
| Statutory NPAT | $5.8m | $3.1m | 86.3% |
The balance sheet also strengthened materially during the period:
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Cash position of $32.1m, up from $14.4m, following an oversubscribed $19.5m capital raise.
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Gearing of 12.6% and Net Debt/EBITDA of 0.5x, the lowest leverage in five years.
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Five-year compound annual growth rates (CAGRs) of 18.8% for sales, 37.7% for EBITDA and 59.8% for NPAT.
Mike Arnold, Group Managing Director & CEO
“FY26 was a transformational year for Stealth, our twelfth consecutive year of sales growth, and the year our profitability inflected as the business scaled. Record sales of $165.1 million and EBITDA growth of 46.2% reflect strong underlying momentum, but the standout achievement was integrating HBT and converting that network scale into recognised revenue, with annual member purchases growing from $100 million to more than $800 million.”
The HBT acquisition: understanding Stealth’s scale transformation
HBT, or Hardware & Building Traders, operates as a buying group and purchasing ecosystem.
The strategic value lies in converting “purchasing volume” into “recognised revenue” through a process called “central billing.” The transition of HBT member orders onto Stealth’s central billing platform will see purchasing volume convert to recognised revenue. This mechanism is central to the company’s future reported earnings.
The acquisition delivered a step-change in scale across several measures:
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Addressable market expanded to approximately $120bn, an increase of $27bn.
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Group purchasing volume grew to over $770m.
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Suppliers now number over 1,300, following the addition of around 490.
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Product categories expanded from 13 to 29.
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The network now spans 1,200+ locations across company-owned and independent HBT member sites.
According to the company, this positions Stealth as Australia’s largest independent distribution platform and a genuine third force in hardware, home improvement, building supplies, industrial MRO and safety.
The capital-light buying group model aggregates procurement power across a network of independent members without requiring store ownership, a structure that underpins the high returns on invested capital Stealth targets as conversion rates scale toward the 75% central billing goal.
Integration progress and operational wins
Since acquiring HBT in November 2025, Stealth has progressed a series of integration milestones:
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Streamlined back-office systems and administration.
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Onboarded all staff to Stealth Workplace Services for payroll and HR.
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Unified buying under the HBT banner.
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Consolidated procurement and optimised supplier terms.
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Completed set-up for central billing.
The transition of HBT member orders onto the central billing platform will see purchasing volume convert to recognised revenue, and this conversion is one of the key drivers of the upgraded FY28 sales target.
Beyond integration, the company recorded several operational wins during the year. It launched on Woolworths, JB Hi-Fi and Amazon marketplaces, and secured exclusive ANZ rights for Casetify, Belkin, Ember, PanzerGlass and Tech21, while expanding its D3O range. On the own-label front, Stealth rolled out CAT, Harden and RIVO into 42 hardware stores, with the rollout continuing.
Dividend lifted to 1.5 cents, fully franked
The Board declared a fully franked final dividend of 1.5 cents per share, up from 1.0 cent last year, reflecting continued strong performance. The record date for determining entitlements is 5:00pm (AWST) on 2 September 2026.
The Dividend Reinvestment Plan (DRP) remains available, allowing shareholders to reinvest and support the company’s growth. For investors, the rising dividend signals Board confidence in sustained performance.
The road to FY28: $500m sales target reaffirmed
Stealth reaffirmed its upgraded FY28 targets of $500m+ sales, an 8–12% EBITDA margin, a 5–8% NPAT margin and capital expenditure of approximately 1.5% of sales. These targets are underpinned by a $120bn+ addressable market and a $770m Group purchasing ecosystem.
Growth is planned across five strategic growth levers:
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Simplify the Supply Chain Ecosystem: Convert more purchasing volume into recognised sales through central invoicing, partnerships and commercial services.
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Expand & Innovate Our Offer: Broaden priority categories, exclusive and own-label brands, and preferred supplier participation.
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Grow Share Across Commercial, Trade & DIY: Acquire customers and grow share of spend across distribution, retail, reseller and digital channels.
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Optimise & Grow Our Network: Expand independent participation and national capability across company-owned and independent locations.
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Enhance Productivity & Technology: Scale systems, data, procurement, automation and digital capability to lower cost-to-serve.
A key runway lies in the central billing conversion. The company is targeting $400m in HBT-related sales as conversion increases from approximately 21% in FY26 to a 75% target.
Early FY27 momentum
FY27 has started strongly, with more than $100m of new annualised sales secured, commencing progressively across 1H27 across the HBT, Heatleys and C&L businesses. This is accompanied by 20% growth in Consumer retail sales (approximately $8m) from new brand launches.
Combined with FY26 sales, the annualised sales run-rate once fully commenced is expected to exceed $265m, up 56% on FY26. A further $130m of annual sales opportunity is in planning and negotiation, targeted to commence from 2H27.
The Company will hold an Investor and Analyst briefing on 19 August 2026.
The FY26 result presents the picture of a scaling, diversified distribution platform. With a strengthened balance sheet, a rising dividend, and a clear strategy for converting network scale into recognised revenue, the company has set out a defined path toward its reaffirmed FY28 targets.
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