News & Media

TRANSFORMATIONAL SCALE: HBT ACQUISITION COMPLETE

Stealth completed the acquisition of Hardware & Building Traders (HBT) in November 2025.

This acquisition:

• Adds ~1,165 independent stores
• Represents ~$700 million in annual member purchases
• Expands supplier relationships to ~490
• Creates a national platform representing >$800 million in consolidated annual purchases
• Positions Stealth as the #1 independent alternative to Wesfarmers and Metcash
• Upgraded FY28 sales target from $300m to >$500m
• Targets ~$8 million annual profit synergies by FY27

The acquisition contributed revenue immediately in 1H26 and materially strengthens earnings momentum into 2H26 and FY27. Stealth now operates across more than 1,200 hardware and industrial locations nationally, establishing a capital-light, high-barrier distribution model in a $93 billion addressable market.

EXECUTION AGAINST FY28 STRATEGY

At the FY25 AGM, Stealth outlined its multi-year pathway to scale, margin expansion, and earnings growth.

FY28 UPDATED TARGET

• Sales $500+ million
• EBITDA Margin 8% – 12% range
• NPAT Margin 5% – 8% range
• Net Debt Ratio / EBITDA Below 1×

The growth catalysts underpinning this expansion include:

• Procurement scale and supplier leverage
• Exclusive and private-label expansion
• Wholesale and charge-through sales
• Network expansion from 32 to >1,200 locations
• Digital and operational efficiency gains

SALES DIVISIONAL PERFORMANCE SUMMARY

Sales grew across both Hardware, Industrial & Safety and Consumer divisions. Despite the ongoing macro economic challenges significant exposure to Western Australia and Queensland geographies along with resources, infrastructure, engineering and construction sectors contributed to a 16% increase in Hardware, Industrial & Safety for 1HY25. This was further supported by a 2% increase in Consumer division thanks to a positive contribution from the launch of Apple iPhone 17, and penetration in larger profitable customer channels in consumer electronics (JB HiFi) and convenience (7-eleven), despite significant headwinds for the consumer with rising inflation and interest rates coupled with ongoing cost of living pressures.

The acquisition and contribution of HBT from November 25 and continuing to benefit from resilient end markets of resources, infrastructure, construction, housing, trade, home improvement provides confidence for continued strong performance in 2H FY26.

EXCLUSIVE AND OWN LABEL BRANDS

In July 25, Stealth secured exclusive ANZ distribution rights for: Casetify, Belkin, Ember, and extended D3O® partnership. All brands are tracking to plan.

RIVO Safety (Stealth’s own-label brand product) in roll-out phase in 14x 7-eleven stores. To be ranged in >1,000 stores by June 26 (700 previously stated).

CAT® and Harden products are ranged in 22 stores with +52 stores by June 26 (previously 30), and +150 stores by September 26 (result: 120 more stores than previously stated).

This brand-led strategy supports Stealth’s objective to increase wholesale distribution to 35–40% of sales by FY28.

CAPITAL DISCIPLINE & CASH GENERATION

The Company’s net gearing reduced to 12.8%, while maintaining strong liquidity with $32.5 million cash on hand.

HBT operates with strong free-cash-flow conversion and high ROIC characteristics, enhancing group cash flow resilience.

Stealth remains compliant with all banking covenants and maintains capacity for disciplined organic and inorganic growth.

TRADING UPDATE & OUTLOOK

Stealth entered 2H FY26 with operational momentum:

• 1H26 performance exceeded 1H25
• HBT integration delivering early synergies
• 2H26 expected to surpass 1H26 performance
• Stronger FY27 expected from full-year HBT contribution The Company remains confident in achieving its FY28 targets.

STEALTH GROUP MANAGING DIRECTOR AND CEO MIKE ARNOLD COMMENTED. “HY26 represents a genuine inflection point for Stealth. Over the past two years, we’ve proven our ability to execute, delivering record FY25 sales of $145 million and 62% EBITDA growth following the successful integration of Force.

With the acquisition of HBT, we have now achieved structural scale. We operate across more than 1,200 locations nationally, representing approximately $800 million in annual purchases.

This positions Stealth as the clear market-leading independent alternative within a highly fragmented $93 billion market. Importantly, this is not just scale, it’s scalable economics.

Our capital-light buying group and wholesale distribution model gives us procurement leverage, margin expansion opportunity, and strong cash flow characteristics.

That is why we upgraded our FY28 targets to more than $500 million in sales, with EBITDA margins of 8 to 12 percent.

The focus now is disciplined execution, integration, procurement capture, exclusive brand rollout, and driving operating leverage across the expanded platform.

We believe the runway ahead is significant, and we are confident in our ability to outperform.”

STEALTH 2028 & BEYOND

Stealth today is:

• A national wholesale, distribution and retail platform
• A dual-division operator across Hardware & Industrial and Consumer
• A capital-efficient model with structural procurement leverage
• The leading independent alternative to major incumbents
• Positioned for scalable earnings expansion

With scale secured, integration underway, and growth catalysts active, Stealth is accelerating toward its $500m+ FY28 sales ambition and establishing a long-term platform for sustainable value creation.