Stealth Group (SGI) H1 2026 earnings summary

Executive summary

• Achieved record half-year financial performance in H1 2026, with sales up 11.8% to $82.2m and NPAT up 51.4% to $1.6m, driven by organic growth, recent investments, and the transformational HBT acquisition, creating Australia’s largest independent hardware and industrial distribution group with 1,200 locations and $800m annual purchase volume.

• Market capitalization reached AUD 200 million, with a 130% shareholder return over the past 12 months.

• Strengthened balance sheet with a $19.5m capital raise, increasing cash to $32.5m and supporting future growth.

• Positioned as the #1 independent alternative in a highly fragmented $93bn market, leveraging a capital-light, scalable model and expanding national distribution footprint.

Financial highlights

• Sales increased 11.8% year-over-year to $82.2m in H1 2026; Hardware, Industrial & Safety up 16.8%, Consumer up 2%.

• EBITDA rose 17.5% to $5.4m; NPAT up 51.4% to $1.6m.

• Gross profit reached $21.2m, maintaining a 29.4% margin; cost of doing business decreased by 4.2% to $15.8m.

• Cash position strengthened to $32.5m, with net debt at $7.3m and leverage ratio at 0.7.

• Net assets increased to $49.5m from $30.2m at June 2025.

Outlook and guidance

• H2 2026 performance expected to exceed H1 2026, with FY 2026 projected to surpass FY 2025 and FY 2028 targets reaffirmed: $500m+ sales, 8–12% EBITDA margin, and 5–8% NPAT margin.

• Integration of HBT and realization of synergies underway, with full-year contribution expected in FY 2026.

• Strategic agenda focuses on operational excellence, digital efficiency, exclusive/private label growth, and further acquisitions.

• Capital expenditure remains capital-light at approximately 1.5% of sales.