Stealth Group (SGI) H2 2025 earnings summary

Executive summary

• Achieved record FY25 sales of $145.1m, up 27.6% year-over-year, with NPAT rising 130.3% to $3.1m and EPS nearly doubling to 2.63 cents per share, driven by organic growth, the Force Technology acquisition, and expansion into new markets and product categories.

• Nine acquisitions to date have significantly 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 (eCommerce, Tool Hire), and digital ecosystem upgrades.

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

• Strengthened balance sheet with net debt reduced by 37% to $6.8m and cash holdings up 42.3% to $14.4m.

Financial highlights

• Sales turnover reached $145.1m, up 27.6% year-over-year; EBITDA grew 62.3% to $9.9m (7% of revenue); net profit and EPS more than doubled.

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

• Debt reduced by 37%, cash balance improved by 42.3%, and a full-year dividend of 1 cent per share declared, up 19%.

• Capital expenditure was $4.8m (3.3% of sales), expected to return to under 1.5% in FY26.

• Net EBITDA leverage ratio improved to 0.7x from 1.8x, the lowest in years.

Outlook and guidance

• On track to achieve FY28 targets: $300m+ in sales, 8%+ EBITDA margin, and 5% NPAT margin, with exclusive/private label products already at 16.4% of sales.

• 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.

• Continued focus on cost reduction, productivity gains, leveraging AI, digital platforms, and omni-channel expansion for future growth.

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