Highlights

  • Stealth Group shares climbed 31.84% to AUD 1.18 on 17 June 2026, following the release of its FY26 results.
  • Preliminary FY26 results indicate record sales of at least AUD 165 million, up 13.7%.
  • EBITDA is expected to reach AUD 14.3 million, representing growth of 44.4%.
  • Net Profit After Tax (NPAT) is forecast to increase 87.1% to AUD 5.8 million.
  • Rhe company completed the AUD 22 million acquisition of Hardware & Building Traders (HBT) in November 2025.
  • Stealth reaffirmed its FY28 target of AUD 500 million in annual sales and an EBITDA margin of 8%–12%.

Stealth Group Holdings Ltd (ASX:SGI) shares surged 31.84% to AUD 1.18 during morning trade on 17 June 2026 after the company released a strategic and financial trading update outlining another year of expected record sales and earnings growth.

The strong market reaction followed the release of preliminary unaudited FY26 results, which point to substantial growth across key financial metrics. Investors also appeared encouraged by continued integration progress following the acquisition of Hardware & Building Traders (HBT), alongside management's confidence that the company remains on track to achieve its FY28 growth objectives.

The update reinforced Stealth's transformation into one of Australia's largest independent distributors and retailers across hardware, industrial, safety and consumer product markets, while highlighting multiple growth initiatives expected to contribute further in FY27 and beyond.

About Stealth Group

Stealth Group is an Australian distributor and retailer operating across hardware, home improvement, industrial maintenance, repair and operations (MRO), safety products and consumer supplies.

The company serves businesses, trade professionals, retailers, organisations, DIY customers and retail consumers through a combination of physical stores, distribution networks, digital sales channels and field-based sales teams.

Through operating brands including Heatleys Safety, Industrial & Hardware, Hardware & Building Traders and Force Technology International, Stealth has built a significant national footprint across Australia.

Following the HBT acquisition, the company now has access to more than 1,200 store locations, over 3,500 consumer retail reseller outlets, approximately 1,300 suppliers and a product offering exceeding one million items nationwide.

Management estimates the company operates within a fragmented Australian market worth approximately AUD 120 billion.

Record FY26 Results Expected Across Key Financial Metrics

The centrepiece of today's announcement was Stealth's preliminary FY26 trading update, which points to another year of record financial performance.

Based on preliminary unaudited results after 48 weeks, the company expects sales of at least AUD 165 million, representing growth of 13.7% compared to the prior period.

Revenue on a like-for-like basis is forecast to reach AUD 146 million, an increase of 5.8%.

Earnings growth was even more pronounced. EBITDA is expected to increase 44.4% to AUD 14.3 million, while NPAT is forecast to rise 87.1% to AUD 5.8 million.

The company's EBITDA margin is also expected to improve significantly, increasing to 8.7% of sales, representing an improvement of 170 basis points.

These figures indicate that earnings growth is currently outpacing revenue growth, reflecting the impact of operational initiatives and integration benefits.

HBT Acquisition Continues to Reshape the Business

A major contributor to Stealth's evolving growth profile is the acquisition of Hardware & Building Traders (HBT), completed in November 2025.

The AUD 22 million transaction brought Australia's largest privately owned membership-based buying group into the Stealth portfolio.

The acquisition added approximately 1,165 independent member stores and around 490 preferred suppliers. For FY25, HBT generated revenue of AUD 6.9 million and normalised EBITDA of AUD 3.7 million.

According to the company, HBT has significantly expanded Stealth's scale, product range, supplier network and market reach.

Before the acquisition, Stealth reported annual sales of approximately AUD 145 million. Including HBT, sales increased to approximately AUD 168 million.

The transaction also expanded the company's presence across hardware, timber, building supplies, paint, garden and landscape, plumbing, rural and pet product categories.

Management described the acquisition as transformational, positioning Stealth as Australia's leading independent distributor and retailer across multiple product segments.

Integration Progress Delivers Early Synergies

The company highlighted substantial progress in integrating HBT into the broader Stealth platform.

Several key integration initiatives have already been completed, including systems integration, supplier integration and member engagement activities.

Other initiatives remain active, including procurement programs, cross-selling opportunities, national account development, member purchasing growth strategies and expansion of exclusive and private-label product ranges.

Management attributed earnings growth to a combination of organic initiatives and integration-related efficiencies.

Key benefits identified by the company include the transfer of similar operating subsidiaries into HBT, consolidated procurement arrangements, improved supplier terms, higher volume-related rebates, service fee benefits and streamlined administrative systems.

These initiatives have collectively contributed to improved productivity and operating efficiency across the group.

Expansion Initiatives Position Business for Further Growth

Beyond the HBT integration, Stealth outlined several initiatives aimed at supporting future growth.

The company has expanded exclusive product offerings into 42 hardware retail stores, including CAT products, Harden Tools and RIVO safety products.

Management indicated that these products generated minimal contribution during FY26 but are expected to provide a larger sales and profit contribution during FY27 and beyond.

Stealth has also secured two new exclusive Australian distribution agreements with global consumer brands.

These include PanzerGlass, secured in June 2026, and Tech21, secured in May 2026.

The company believes these agreements will strengthen its product offering and support future revenue opportunities.

Digital channel expansion also remains a focus.

After previously launching products through JB Hi-Fi, Stealth expanded into Woolworths Marketplace in February 2026 and Amazon Australia in June 2026.

Management expects these marketplace initiatives to contribute more than AUD 10 million in incremental sales by the end of FY28.

Scale Metrics Highlight Transformation

The update provided several metrics illustrating the scale achieved following the HBT acquisition.

The company's national store and member network expanded from 32 locations to more than 1,200 member stores.

Supplier relationships increased from approximately 800 suppliers to 1,300.

Stealth's consumer reseller network remains at more than 3,500 locations nationwide.

The broader network expansion significantly increases the company's procurement scale and market access opportunities.

Management believes this enhanced scale creates opportunities to improve supplier relationships, negotiate favourable commercial arrangements and introduce new products and services across a much larger distribution footprint.

Four Strategic Growth Pillars Remain Central

Stealth continues to build its long-term growth strategy around four core pillars.

These include Products & Categories, Stores & Distribution Networks, Value-Added Solutions and Procurement Scale.

According to management, these pillars underpin multiple growth opportunities across the business.

Key initiatives include centralised invoicing and member services through HBT Trade Accounts, growth in HBT member purchasing activity, expansion into new customer channels, growth of exclusive and private-label products, logistics optimisation and further network expansion.

Collectively, the company estimates these initiatives represent a sales opportunity exceeding AUD 400 million.

Management believes these opportunities provide a pathway toward achieving its longer-term financial objectives.

FY28 Target Remains Firmly in Focus

One of the strongest messages from today's announcement was management's confidence regarding its FY28 targets.

Stealth reaffirmed its goal of reaching AUD 500 million in annual sales by FY28 while maintaining an EBITDA margin between 8% and 12%.

The company highlighted that FY27 is expected to represent a significant step change in sales, revenue and EBITDA.

This outlook is expected to be supported by the first full-year contribution from HBT, ongoing organic growth initiatives and additional synergy realisation.

The company also expects further benefits from procurement scale, supplier partnerships, operating leverage and increased sales of exclusive products and private-label offerings.

Importantly, management noted that the AUD 19.5 million capital raising completed in December 2025 has strengthened the balance sheet and provided additional capacity to support future growth initiatives.

Management Commentary Reinforces Confidence

Managing Director and CEO Mike Arnold stated that the preliminary FY26 results reflected another year of earnings growth supported by operational performance improvements, productivity gains and the integration of HBT.

He noted that integration activities continue to progress, with several initiatives already completed and additional synergy opportunities still being pursued.

Management also emphasised the expanded scale and market reach created by the HBT acquisition and highlighted the company's focus on capturing market share across Australia's fragmented hardware, industrial, safety and home improvement sectors.

The company believes these initiatives position it to continue advancing toward its FY28 objectives.

Why Investors Are Watching Stealth Group

The sharp share price move appears to reflect a combination of strong earnings growth, improving margins and confidence in the company's expansion strategy.

The market was presented with preliminary figures showing double-digit sales growth, EBITDA growth exceeding 40% and NPAT growth approaching 90%.

Investors also received further evidence that integration of the HBT acquisition is progressing as planned, while multiple growth initiatives remain active across distribution, procurement, products and digital channels.

The reaffirmation of the FY28 target provides additional visibility regarding management's longer-term objectives and expected growth trajectory.

What This Means for Investors

Stealth Group's latest update highlights a business continuing to expand both operationally and financially. Preliminary FY26 results indicate record sales, improved margins and substantial earnings growth, while integration of the HBT acquisition continues to deliver efficiencies and broader market reach.

With more than 1,200 member stores, 1,300 suppliers and a growing portfolio of exclusive products and distribution partnerships, the company is pursuing multiple avenues for expansion. Investors are likely to monitor final FY26 results, further integration milestones and progress toward the company's FY28 target of AUD 500 million in annual sales.