Stealth Group turns HBT expansion into record FY26 performance

HBT acquisition drives record FY26

Stealth Group Holdings Ltd (ASX:SGI) has put hard numbers behind its enlarged operating model, reporting a record FY26 after the acquisition of Hardware and Building Traders (HBT) expanded its reach across Australia’s hardware, building supplies, industrial and workplace markets.

Sales rose 13.8% to $165.1 million, while EBITDA climbed 46.2% to $14.4 million. Net profit after tax increased 86.3% to $5.8 million. The company said the result reflected organic growth in its existing operations as well as HBT’s contribution following completion of the acquisition in November 2025, which was supported by a $19.5 million capital raise.

Expanded network brings scale and complexity

HBT brought 1,165 independently owned retail and trade operators into Stealth’s membership base, alongside a broader product range spanning timber, building supplies, paint, garden and landscape, plumbing, rural and pet products. The supplier network expanded from about 800 to approximately 1,300.

The acquisition was the subject of earlier coverage after Stealth reported an HBT acquisition-led profit jump. The AGM address now points to the less glamorous but more consequential phase: systems integration, supplier-term renegotiations and the effort to make the combined platform work efficiently across a much larger network.

HBT Trade Account sets platform target

Stealth said billing for the first tranche of suppliers under the HBT Trade Account was completed from 1 July 2026. That is an early step towards its stated FY28 target of transitioning $200 million of HBT member order value onto Stealth’s platform.

The target gives shareholders a concrete measure for judging whether the acquisition is becoming more than a larger customer and supplier base. The address does not provide new FY27 financial guidance, however, leaving the pace of adoption and the financial benefit of the platform initiatives to be demonstrated through subsequent reporting.

Debt remains modest after expansion

At year-end, net debt stood at $7.7 million, equivalent to 0.5 times EBITDA. That provides a relatively low leverage starting point as Stealth continues integrating HBT, although the filing does not quantify integration costs or separately identify the contribution from organic operations.

Chairman Chris Wharton said the share price rose from $0.73 to $1.29 during FY26, taking market capitalisation from $94.5 million to $192.9 million. Those figures describe the market’s movement over the year; the more demanding question now is whether operational delivery can keep pace with the expectations embedded in the enlarged valuation.