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 the transformational acquisition of Hardware & Building Traders (HBT) and recent investments.

• Completed HBT acquisition in November 2025, expanding to over 1,200 locations and $800m annual purchase volume, creating Australia’s largest independent hardware and industrial distribution group.

• Strengthened balance sheet with a $19.5m capital raise, cash position of $32.5m, and net assets at $49.5m.

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

• Positioned as the leading independent alternative in a highly fragmented $93bn market, leveraging a capital-light, scalable model.

Financial highlights

• Sales increased 11.8% year-over-year to $82.2m in H1 2026; Hardware, Industrial & Safety up 16–17%, Consumer up 2%.

• EBITDA rose 17.5% to $5.4m; NPAT up 51.4% to $1.6m; gross profit margin steady at 29.4%.

• Cash position at $32.5m; net debt at $7.3m; leverage ratio at 0.7x; net gearing ratio at 12.8%.

• Cost of doing business decreased by 4.2% to $15.8m.

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

Outlook and guidance

• 2H FY26 expected to exceed 1H26, with FY26 and FY28 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 FY26.

• Strategic focus on operational excellence, digital efficiency, exclusive/private label growth, and disciplined capital-light expansion.

• Capital expenditure remains capital-light at approximately 1–1.5% of sales.