Stealth Group (SGI) H1 2025 earnings summary

Executive summary

• Achieved record half-year results with revenue up 26.5% to $71.47m, net profit after tax up 249.2% to $1.58m, and EPS up 202.2% to 1.36c, surpassing the previous full-year result.

• Both industrial and consumer segments delivered strong performances, supported by the successful integration of Force Technology and new product launches.

• Total shareholder return exceeded 100% over 12 months and 300% over three years, with market capitalization rising above AUD 70 million.

• Maintained a strong balance sheet, with cash up 18% to $10.4m and robust capital management.

• Declared and paid maiden dividend, reflecting strong financial position and shareholder returns.

Financial highlights

• Revenue rose 26.5% to $71.47m; gross profit up 26.7% to $21.04m; gross margin stable at 29.44%.

• EBITDA increased 78% to $5.0m, with margin reaching 7.0% for the first time; EBIT up 138.4% to $3.29m.

• NPAT margin improved to 2.22% from 0.80%; return on capital employed rose to 18.8% from 12.2%.

• Operating cash flow before interest rose 8.8%, with closing cash balance up 18% to $10.4m.

• Net debt to EBITDA reduced to 1.11x; average cost of debt at 6.4%.

Outlook and guidance

• Reaffirmed FY2028 targets: $300m+ revenue, >8% EBITDA margin, and 5% NPAT margin.

• Revenue up 33.9% year-over-year in first 8 weeks of 2H25; robust demand expected to continue.

• FY25 NPAT margin guidance maintained at 1.5%-3%; capital expenditure for FY25 estimated at $1.8m–$2.2m, focused on technology and store upgrades.

• Actively negotiating new exclusive product arrangements and expanding market channels.

• Strategic focus on organic growth, operational excellence, and value-accretive acquisitions.