Stealth Group Holdings Builds Record FY26 Platform For $500m Sales Push

Stealth Group Holdings (ASX: SGI) has forecast another record annual result after preliminary unaudited figures showed strong growth across sales, earnings, and profit.

The diversified distributor and retailer expects financial year 2026 sales of at least $165 million, revenue of $146m, EBITDA of $14.3m and net profit after tax (NPAT) of $5.8m.

The result reflects organic growth, productivity improvements, and the contribution of Hardware & Building Traders (HBT), which Stealth acquired in November 2025 for $22m.

Stealth has also reaffirmed its financial year 2028 target of $500m in annual sales and an EBITDA margin of between 8% and 12%.

Record Earnings Growth

The company’s preliminary financial year 2026 result represents sales growth of 13.7%, revenue growth of 5.8% on a like-for-like basis, EBITDA growth of 44.4%, and NPAT growth of 87.1%.

Stealth also expects to lift its EBITDA margin as a percentage of sales to 8.7%, representing an improvement of 170 basis points.

The company linked the earnings uplift to organic initiatives and HBT integration synergies, including improved procurement leverage, supplier terms, service-related fees, and back-office efficiencies.

Management said financial year 2027 should deliver a significant step change in sales, revenue, and EBITDA as HBT contributes for a full year and further synergies flow through the group.

Stealth completed a $19.5m capital raising in December 2025 and said it had a strong balance sheet and working capital position to support its organic growth plan.

HBT Transforms Reach

HBT has expanded Stealth’s national network from 32 stores to approximately 1,200 stores and lifted its supplier base from 800 to 1,300 while adding scale across hardware, timber, building supplies, paint, garden and landscape, plumbing, rural, and pet categories.

Stealth said systems integration, supplier integration, and member engagement had been completed since the acquisition.

The company is now pursuing active procurement initiatives, cross-selling programs, national account opportunities, member purchasing growth, and exclusive product activities.

The enlarged platform gives Stealth a broader national distribution footprint and positions the group as an independent alternative in Australia’s fragmented hardware, industrial, safety, and consumer product markets.

New Channels Added

Stealth expanded its exclusive product range into 42 hardware retail stores during the fourth quarter of financial year 2026, including CAT, Harden Tools, and RIVO safety products.

The company expects those products to make a more meaningful contribution in financial year 2027 after generating minimal sales in the current year.

Stealth has also secured Australian territory exclusive distribution agreements with global consumer retail brands Panzer Glass and Tech21, and launched products on Woolworths and Amazon online consumer retail marketplaces after completing a JB Hi-Fi marketplace launch in the first half.

Those new consumer retail marketplace channels are expected to deliver more than $10m in incremental sales by the end of financial year 2028.

Strong Operating Platform

Chief executive officer Mike Arnold said the result reflected the strength of Stealth’s operating platform and the benefits of HBT integration.

“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,” he said.

“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.”

“This positions Stealth strongly to accelerate its pathway towards its FY28 target of $500 million in annual sales and EBITDA margin of 8–12%.”