Few small ASX industrial distributors have compounded sales the way Stealth Group Holdings (ASX:SGI) has, and FY2026 was the year Earnings caught up with the top line. Sales rose 13.8% to A$165.1 million and statutory net profit after tax climbed 86.3% to A$5.8 million, while the purchase of buying group Hardware & Building Traders lifted the group's reach past 1,200 locations nationally. With a Market Capitalisation of about A$192 million as at 11 September 2026 and a fully franked final Dividend due on 30 September 2026, the supplier could remain in focus for investors tracking Australian distribution.

Latest Development

Stealth released its FY2026 result on 18 August 2026 under the heading of record financial performance. Sales for the year to 30 June 2026 reached A$165.1 million, up 13.8%, in what the company described as its twelfth successive year of sales growth. Statutory Revenue was A$146.0 million.

Statutory EBITDA rose 46.2% to A$14.4 million, widening the Margin to 8.7% of sales from 6.8%. Statutory NPAT of A$5.8 million lifted the net margin to 3.5% from 2.2%, and Earnings Per Share increased 56.7% to 4.12 cents. Directors declared a final dividend of 1.5 cents per share fully franked, 50% above the 1.0 cent paid for FY2025.

Company Overview

Stealth describes itself as an independent distributor and retailer supplying products and solutions for the workplace and the home. It trades through Heatleys in safety, industrial and hardware supply, C&L Tool Centre in Western Australia and South Australia, Force Technology in mobile technology accessories, and the H Hardware banner, under which 51 independent stores operate on licence.

The network spans roughly 1,200 locations: eight company-owned branches across Western Australia, South Australia and Queensland, about 1,165 HBT member stores, and more than 3,500 consumer retail reseller points. By FY2026 sales mix, industrial maintenance, repair and operations accounted for 51%, consumer retail 23%, safety 14%, and hardware and building 12%.

Recent Developments

The defining transaction of the period was the purchase of Hardware & Building Traders, completed on 10 November 2025 for A$22 million plus an earnout of up to A$5 million. HBT is a member-based buying group with more than 1,165 member stores and roughly 490 suppliers, managing annual purchasing Volume of about A$645 million.

Financial and Operational Position

Cash stood at A$32.1 million at 30 June 2026, up from A$14.4 million. Net Debt was A$7.7 million, with net debt to EBITDA of 0.5 times against 0.7 times a year earlier, and gearing easing to 12.6% from 18.3%. Intangible assets of A$51.4 million largely reflect Goodwill recognised on HBT.

What Investors May Watch Next

Management said A$100 million of new annualised sales had been secured and would commence progressively through the first half of FY2027, with FY2027 sales expected to exceed A$265 million on a run-rate basis. A further A$130 million of annual sales opportunity is in planning for the second half.

Longer term, the company has set FY2028 targets of more than A$500 million in sales, an EBITDA margin of 8% to 12% and a NPAT margin of 5% to 8%, conditional on rolling central billing across the HBT member network.

Risks

Delivery depends heavily on integrating HBT and converting member purchasing volume into group revenue, which is unproven at scale. The FY2028 targets imply sales roughly tripling from FY2026 and are not guidance in the conventional sense. Demand across hardware, construction and industrial maintenance is cyclical, competition from larger national distributors is intense, and inventory remains a call on cash.

Conclusion

Stealth enters September 2026 having converted a decade of top-line growth into a stronger earnings and Balance Sheet position, with cash more than doubled and gearing lower. The HBT Acquisition has reset the scale of the business, but it also concentrates the Investment case on execution. Whether the group can convert secured annualised sales into reported revenue is the question that may keep this ASX industrial name on watchlists.