Stealth Group (SGI) Trading update summary

FY 2026 Performance and Integration Progress

• FY 2026 is expected to deliver record results: sales of at least AUD 165 million (+13.7%), EBITDA of at least AUD 14.3 million (+44.4%), and NPAT of at least AUD 5.8 million (+87.1%), with EBITDA margin up to 8.7%.

• Growth is driven by productivity improvements, operational efficiencies, procurement initiatives, and successful HBT integration.

• HBT acquisition expanded the network from 32 to over 1,200 stores and suppliers from 800 to 1,300, adding new categories and national reach.

• Integration initiatives, including systems and supplier integration, member engagement, and exclusive product rollouts, are completed and delivering benefits, with further synergies being pursued.

• Cash balance for FY 2026 is expected to exceed AUD 30 million, with positive operating cash flow.

Strategic Growth and FY 2028 Targets

• FY 2028 target of AUD 500 million in sales at 8%-12% EBITDA margin is reaffirmed and on track, with FY 2027 expected to see a significant uplift.

• Over AUD 400 million in new sales opportunities identified across strategic growth pillars, including products, stores, value-added solutions, and procurement scale.

• Procurement scale, supplier partnerships, and exclusive brand rollouts are expected to further improve earnings.

• Pathway to FY 2028 target is supported by a $19.5 million capital raising and a strong balance sheet.

• Dividend will be paid for FY 2026, higher than FY 2025, with details to be disclosed in August.

Market Environment and Investor Relations

• Despite challenging macro conditions, hardware, safety, and industrial segments remain resilient and in line with long-term trends.

• Consumer retail faces discretionary pressures, but strong brand portfolio and new exclusive agreements support growth.

• Institutional investor support has strengthened following recent capital raises, with efforts to increase retail investor participation.

• Management is confident in execution and sees no material risks to achieving FY 2028 targets.

• Centralized invoicing (trade member account) is progressing, simplifying supplier and member transactions.