Stealth Group Holdings has posted record preliminary FY26 results, driven by strong organic growth and the transformative acquisition of Hardware & Building Traders (HBT). The company remains on track for its ambitious FY28 sales and EBITDA margin targets.
- Preliminary FY26 sales hit $165 million, up 13.7%
- EBITDA surged 44.4% to $14.3 million, NPAT nearly doubled
- HBT acquisition expands network to over 1,200 stores and 1,300 suppliers
- Integration synergies progressing with multiple initiatives completed
- FY28 target of $500 million sales and 8–12% EBITDA margin remains on track
Record FY26 Performance Driven by Organic Growth and Acquisition
Stealth Group Holdings (ASX:SGI) is riding high after preliminary unaudited FY26 results revealed another record year, with sales climbing 13.7% to $165 million and EBITDA jumping 44.4% to $14.3 million. Net profit after tax nearly doubled, reaching $5.8 million, underscoring improved operational efficiency and stronger earnings momentum.
This performance builds on Stealth's established growth trajectory, fuelled by both organic initiatives and the strategic acquisition of Hardware & Building Traders (HBT) in November 2025. The $22 million deal added more than 1,165 independent member stores and expanded the supplier base by over 500, significantly boosting Stealth’s market footprint.
HBT Acquisition Transforms Scale and Market Reach
The integration of HBT has been a game changer, expanding Stealth’s network from 32 stores to over 1,200 and increasing suppliers from 800 to 1,300. This acquisition has broadened the company’s product categories into hardware, timber, building supplies, paint, garden, plumbing, rural, and pet sectors, positioning Stealth as Australia’s leading independent distributor and retailer in its space.
Integration efforts are well advanced, with systems and supplier consolidation complete, and active initiatives underway to leverage procurement scale, cross-selling, and national account opportunities. These efforts have already started to deliver volume-led rebates and service fee gains, contributing to the strong earnings uplift.
Strategic Growth Pillars Fuel Ambitious FY28 Targets
Stealth is executing a four-pillar growth strategy centred on expanding products and categories, growing its store and distribution networks, enhancing value-added customer solutions, and maximising procurement scale. The company expects FY27 to mark a significant inflection point, driven by the first full-year contribution from HBT and continued organic growth.
Exclusive distribution agreements secured in FY26 with global brands Panzer Glass and Tech21, alongside new online marketplace launches including Woolworths and Amazon, underpin expectations for more than $10 million in incremental sales by FY28. The company also expanded its exclusive product range across hardware retail stores, aiming to boost sales and margins further.
Capital Raising Supports Growth Ambitions
Following a $19.5 million capital raise in December 2025, Stealth holds a strong balance sheet to fund its growth plans. This financial flexibility supports ongoing integration, procurement initiatives, and network expansion, all critical to achieving the FY28 target of $500 million in sales and an EBITDA margin between 8% and 12%.
CEO Michael Arnold highlighted that the acquisition and integration of HBT have reshaped Stealth’s scale and market presence, positioning it as a credible independent alternative to major players in the fragmented Australian hardware and industrial markets. The company’s pathway to FY28 is underpinned by a combination of operational efficiencies, expanded product offerings, and enhanced supplier partnerships.
Bottom Line?
Stealth’s FY26 results and HBT integration set a strong foundation, but delivering on the ambitious $500 million sales target by FY28 will require sustained execution across multiple growth fronts.
Questions in the middle?
- How will Stealth sustain organic growth amid intensifying competition in the hardware and industrial sectors?
- What risks could arise from integrating HBT’s large and diverse member base over the next two years?
- To what extent will exclusive product launches and online marketplace expansions contribute to margin improvement?