Stealth Group (SGI) H2 2025 earnings summary

Executive summary

• Achieved record financial and operational growth in FY25, with sales up 27.6% to $145.1m and revenue up 24.7% to $141.7m, driven by organic expansion and the Force Technology acquisition.

• NPAT increased 130.3% to $3.1m, and EPS nearly doubled to 2.63 cents per share; EBITDA rose 62.3% to $9.9m, representing 7% of revenue.

• Nine acquisitions to date have increased scale, distribution, and operational leverage, positioning the company as a leading diversified distributor.

• Strategic initiatives included $4.8m investment in growth platforms, exclusive/private-label brands, new business models, and digital upgrades.

• Share price surged 248% over 12 months, lifting market capitalization to $94.5m as of 30 June 2025.

Financial highlights

• Sales turnover reached AUD 145 million, up 27% year-over-year; EBITDA grew 62% to 7% of revenue; net profit and EPS more than doubled.

• Gross profit increased 20.8% to $40.7m; gross margin slightly decreased to 28.7% due to product mix and competition.

• Net debt reduced 37.1% to $6.8m; net debt/EBITDA ratio improved to 0.7x, the lowest in five years.

• Cash balance rose 42.3% to $14.4m; full-year dividend increased 19% to 1.0 cent per share, with a payout ratio of ~41.5%.

• Capital expenditure was 3.3% of sales, expected to return to 1.5% in FY26.

Outlook and guidance

• On track to achieve FY28 targets: $300m+ annual sales, 8%+ EBITDA margin, and 5% NPAT margin.

• Exclusive/private label products already at 16.4% of sales, ahead of the 10% FY28 target.

• FY26 expected to benefit from new exclusive/private-label products, eCommerce channels, store expansion, and tool hire business.

• Margin gains anticipated from improved supplier pricing and lower freight rates; EBITDA margin expected to reach the top end of guidance before FY28.

• No specific FY26 revenue guidance, but confidence in outperforming or meeting long-term goals.