News & Media

1 Sales is a non-ifrs term where sales relating to trade rebates are added back to Revenue.

Stealth Group Managing Director and CEO Mike Arnold commented:

“FY26 was a transformational year for Stealth, our twelfth consecutive year of sales growth, and the year our profitability inflected as the business scaled. Record sales of $165.1 million and EBITDA growth of 46.2% reflect strong underlying momentum, but the standout achievement was integrating HBT and converting that network scale into recognised revenue, with annual member purchases growing from $100 million to more than $800 million.

“We enter FY27 with a strong balance sheet and cash of $32.1 million giving us the headroom to continue executing our growth strategy.

“The sales momentum and growth in profitability in FY26 underpin our upgraded FY28 targets of $500 million in sales and an 8-12% EBITDA margin. These targets are grounded in the progress already made on HBT’s central billing rollout, our growing exclusive brand portfolio, and sustained demand across the network. We are confident in our ability to deliver on this strategy and to continue creating long-term value for shareholders.”

Transformational Performance

• Industry-defining expansion: Through the acquisition of HBT the addressable market expanded to ~$120bn (+$27bn), cementing Stealth as Australia’s largest independent distribution platform and a genuine third force in hardware, home improvement, building supplies, industrial MRO and safety.
• Substantial growth in group purchasing volume: Grew the volume of purchases transacted through the Group’s purchasing ecosystem increased $645m to over $770m.
• Expanded supplier network: Added ~490 suppliers, now over 1,300 across multiple categories.
• Expanded product range: Expanded our product categories from 13 to 29, spanning hardware, timber, home improvement, building supplies, industrial MRO, safety and consumer retail.
• Network locations: Added 1,165 stores, now 1,200+ across company-owned and independent HBT member locations.

Operational Highlights

FY26 delivered strong operational performance, productivity gains, efficiencies, and the successful integration of HBT, a step-change in scale and capability.

• HBT acquisition: Integrated Stealth’s existing buying group with 32 members, $8m in sales and 126 suppliers, into HBT’s network.
• Integration synergies: Margin, revenue and productivity gains achieved, with further opportunities progressing into FY27.
• Marketplace expansion: Launched on Woolworths, JB Hi-Fi and Amazon.
• Exclusive distribution: Secured ANZ rights for Casetify, Belkin, Ember, PanzerGlass and Tech21; expanded D3O range.
• Own-label growth: Rolled out CAT, Harden and RIVO into 42 hardware stores, with rollout continuing.
• Strategic target upgraded: to $500m sales, 8–12% EBITDA margin 5-8% NPAT margin and capital investment <1.5% of sales.

A transformational year with key strategic initiatives delivered, positioning Stealth for continued growth.

HBT Integration and Synergies

Since acquiring HBT in November 2025, key integration milestones have been achieved:

• Streamlined back-office systems and administration.
• Onboarded all staff to Stealth Workplace Services for payroll and HR.
• Unified buying under the HBT banner.
• Consolidated procurement and optimised supplier terms.
• Completed set-up for central billing.

The transition of HBT member orders onto Stealth’s central billing platform, will see purchasing volume convert to recognised revenue. This is one of the key drivers of Stealth’s upgraded FY28 Sales target.

Dividend

The Board has declared a fully franked final dividend of 1.5 cents per share, up from 1.0 cents last year, reflecting continued strong performance. The record date for determining entitlements to the final dividend is 5:00pm (AWST) on 2 September 2026.

The Dividend Reinvestment Plan (DRP) remains available, providing shareholders the opportunity to reinvest and support Stealth’s growth.

Strategy

Stealth’s strategy is to scale the Group and compound long-term shareholder value, targeting $500m+ sales, an 8–12% EBITDA margin and a 5–8% NPAT margin by FY28. This is underpinned by a $120bn+ addressable market and a $770m Group purchasing ecosystem, with growth delivered through five strategic growth levers:

• Simplify the Supply Chain Ecosystem: Convert more of the Group’s purchasing ecosystem into recognised sales and earnings through central invoicing, partnerships and commercial services, targeting $400m in HBT-related sales as conversion increases from ~21% in FY26 to a 75% target.
• Expand & Innovate Our Offer: Broaden priority categories, exclusive and own-label brands, and preferred supplier participation to lift category penetration, share of wallet and gross profit contribution.
• Grow Share Across Commercial, Trade & DIY: Acquire customers, improve retention and grow share of spend across distribution, retail, reseller and digital channels, including new category expansion into the Heatleys and C&L Tools businesses.
• Optimise & Grow Our Network: Expand independent participation and national capability across company-owned and independent locations, growing capital-light sales and ecosystem purchasing activity.
• Enhance Productivity & Technology: Scale systems, data, procurement, invoicing, automation and digital capability to lower cost-to-serve and support margin expansion across all growth priorities.

The Group will continue to consider strategic acquisitions to accelerate customer reach, capability, procurement scale, network and category expansion.

Outlook

Looking ahead, our path to FY28 is both clear and compelling, underpinned by the growth already secured early in FY27 and a proven strategy for converting network scale into recognised revenue.

• FY27 has started strongly: more than $100m of new annualised sales secured, commencing progressively across 1H27 across the HBT, Heatleys and C&L businesses, together with 20% growth in Consumer retail sales (~$8m) from new brand launches.
• Momentum continues to build: combined with FY26 sales, this takes the annualised sales run-rate once fully commenced to over $265m, up 56% on FY26, with a further $130m of annual sales opportunity in planning and negotiation, targeted to commence from 2H27.
• FY28 targets reaffirmed: these outcomes underpin the Group’s FY28 targets of $500m+ sales, an 8–12% EBITDA margin, a 5–8% NPAT margin and capital expenditure of approximately 1.5% of sales.

We remain focused on delivering these outcomes as we build a business of greater scale, resilience, and longterm shareholder value. Demand for our products continues to grow, underpinned by a model that now spans a significantly larger network following the HBT acquisition.

The Company will hold an Investor and Analyst briefing on Wednesday, 19 August 2026 at 11.00am AEST. To register for the event please follow the link below: https://zoom.us/webinar/register/WN_sKRyAuaLT86D2SXBKTEkyA.