Stealth Upgrades FY28 Sales Target by 67% After Hardware & Building Traders Deal

A Strategic Leap in Hardware Distribution

Stealth Group Holdings has taken a decisive step in reshaping the Australian hardware and industrial distribution landscape with its acquisition of Hardware & Building Traders (HBT), the country’s largest privately owned hardware buying group. Announced on November 10, 2025, the $22 million all-cash deal brings a substantial network of 1,165 independent stores, a $700 million purchase volume, and nearly 500 suppliers into Stealth’s expanding ecosystem.

This acquisition is more than just a numbers game; it strategically aligns with Stealth’s existing wholesale, industrial, and trade distribution model, reinforcing its position as the leading independent alternative to dominant players like Bunnings and Metcash. The integration of HBT’s buying group capabilities into Stealth’s broader wholesale distribution framework is expected to unlock significant operational synergies and margin expansion.

Upgraded Financial Ambitions

Following the acquisition, Stealth has ambitiously upgraded its FY28 sales target from $300 million to over $500 million. This leap is underpinned by anticipated scale benefits, enhanced buying power, and improved margins. The company projects an $8 million annualised profit uplift by FY27, alongside more than $200 million in incremental sales by FY28, signaling a robust growth trajectory fueled by the expanded network and supplier base.

Stealth’s diversified multi-sector distribution model, which spans hardware, industrial, safety, automotive, workplace, and consumer products, is poised to benefit from this expanded footprint. The company’s flexible multi-channel approach; combining wholesale, retail, trade, direct-to-business, and online distribution; positions it well to capitalize on the fragmented $93 billion hardware and industrial market.

Integration and Market Impact

The integration of HBT’s operations is planned over the next 90 days, with immediate benefits expected. Stealth’s strategy leverages both hard and soft synergies, including procurement scale, supplier leverage, operational efficiencies, and network expansion. The acquisition expands Stealth’s network from 32 to over 1,200 store locations, significantly enhancing its market reach and competitive positioning.

Importantly, HBT’s technology-driven, fully integrated digital ecosystem will support end-to-end supply chain efficiency and strengthen member-supplier connectivity, a critical advantage in today’s distribution environment. The acquisition also opens avenues for membership growth and potential consolidation of other buying groups, further solidifying Stealth’s market presence.

Outlook and Market Positioning

Stealth’s management remains confident in the company’s resilience amid steady market conditions, highlighting better first-half FY26 performance compared to the previous year. The HBT acquisition is expected to drive sustainable sales and earnings growth into the second half of FY26 and beyond, setting the stage for a stronger FY27.

With upgraded targets for EBITDA and net profit after tax, alongside disciplined capital investment and a healthy net debt ratio, Stealth is signaling financial discipline alongside growth ambitions. The company’s enhanced scale and integrated platform create a high barrier to entry for competitors, positioning Stealth as a formidable player in a highly fragmented market.