Supply Network is targeting around $50 million of additional revenue in FY2027 after delivering 15.5% sales growth and expanding its Multispares network across Australia and New Zealand. The next phase includes a planned $9 million Penrith branch and further capacity upgrades, although the company has not quantified the earnings return from that investment.
- FY2026 sales revenue rose 15.5% to $403.1 million
- Profit after tax reached $47.6 million and dividends paid rose to 74.0 cents per share
- FY2027 revenue growth target remains around $50 million
- Penrith branch development expected to cost approximately $9 million
- Shareholders backed all three AGM resolutions
Supply Network Sets FY2027 Revenue Target
Supply Network Limited (ASX:SNL) is carrying a strong FY2026 result into the new financial year, targeting around $50 million of further revenue growth while acknowledging a general slowdown in economic activity.
The truck and bus aftermarket parts supplier reported sales revenue of $403.1 million for FY2026, up 15.5%, while profit after tax reached $47.6 million. Basic earnings per share rose 17.3%, and total dividends paid increased to 74.0 cents per share, marking the tenth consecutive year of dividend increases.
The figures repeat results already reported to the market, but the AGM presentation adds detail on where management expects the next leg of growth to come from. Supply Network said it was satisfied with early progress towards the existing FY2027 target, without providing a separate earnings forecast or quantified return expectations for the expansion program.
Multispares Expands Its Branch and Distribution Network
The company’s expansion is centred on Multispares, its truck and bus parts network. In New Zealand, a new Rosedale branch in North Auckland opened in March and is performing ahead of expectations, while additional racking at the Hamilton distribution centre was completed in June. Supply Network is also pursuing closer integration of its New Zealand and Australian operating systems and personnel.
In Australia, the company has completed the integration of its Pemulwuy and Truganina distribution centres and has expanded several branch footprints. Toowoomba has moved to a site with more than double its former operating capacity, while Eagle Farm in Brisbane and Canberra have received substantially larger premises. These initiatives build on the FY2026 expansion program, which previously included major branch projects and technology upgrades.
Penrith Branch Adds $9 Million Capital Commitment
The clearest new capital commitment is the purchase of land at Penrith in Sydney’s north-west, where Supply Network plans to build a branch at an expected total development and fit-out cost of around $9 million. The site is intended to improve service in a growing regional corridor and relieve congestion at Pemulwuy, with opening planned for the first quarter of FY2028.
Further capacity is planned at Kwinana in Western Australia, where a relocation scheduled for the third quarter of FY2027 is expected to nearly triple the branch’s current capacity and increase stock held across the state network. The company has not disclosed the aggregate cost of these projects or how much additional revenue each site is expected to generate.
IT Upgrades Move From Buildout to Execution
Supply Network also completed a multi-year technology program during FY2026. A browser-based sales interface, enhanced warehouse scanning applications and a new enterprise resource planning backbone went live in April. Management said the upgrades remove obstacles to process improvement and are intended to increase efficiency, reduce the cost of doing business and support customer service.
The aftermarket remains competitive, with the company estimating global truck and bus parts demand is growing at about 7% a year while independent suppliers continue to take share from vehicle manufacturers and their dealer networks. That creates room for expansion, but it also leaves the FY2027 target dependent on converting new capacity and upgraded systems into sustained sales growth.
AGM Resolutions Receive Strong Shareholder Support
Shareholders approved the remuneration report with 99.35% support from proxies, re-elected Greg Forsyth with 96.00% support and approved the potential issue of up to 15,000 incentive-plan shares to managing director Geoffrey Stewart with 98.62% support. The plan shares cover the three financial years ending June 2027, 2028 and 2029 and remain subject to performance and service conditions.
The meeting also marked the death of founder Harry Forsyth in August, almost 50 years after the business began as Leyspares in the Forsyth family home. The company is now moving into a period in which the physical network, technology investment and management depth will be tested against a concrete revenue objective: whether the targeted $50 million can be delivered without eroding margins or stretching the balance sheet.
Bottom Line?
The FY2027 test is less about announcing new projects than proving that expanded branches and upgraded systems can convert capacity into profitable revenue.
Questions in the middle?
- Can Supply Network deliver around $50 million of additional FY2027 revenue while maintaining its recent profit margins?
- What will the Penrith, Kwinana and other branch projects contribute to revenue, earnings and capital expenditure?
- Will the new ERP, sales and warehouse systems produce measurable efficiency gains as the network scales?