Stealth Group Surges 27.6% in Sales, Eyes $300M Target by 2028

Record Growth in a Diversified Distribution Powerhouse

Stealth Group Holdings Ltd (ASX, SGI) has delivered a standout performance for the full year ended June 2025, posting a 27.6% increase in sales to $145.1 million and a remarkable 130.3% jump in net profit after tax to $3.1 million. This marks the company’s 11th consecutive year of sales growth, underscoring the strength of its diversified distribution model across industrial, safety, automotive, workplace, and consumer products.

The company’s EBITDA climbed 62.3% to $9.9 million, reflecting operational leverage and disciplined cost management that reduced the cost of doing business as a percentage of revenue from 24.3% to 21.7%. Despite a slight dip in gross margin percentage due to category mix and freight costs, Stealth’s scale benefits and efficiency gains have bolstered profitability.

Strategic Acquisitions and Capital Investments Fuel Expansion

A key driver of Stealth’s growth was the full-year contribution from its June 2024 acquisition of Force Technology, which has become a cornerstone of its consumer division. The company also completed a $7.5 million capital raise in May 2025, enabling investments in exclusive and private-label brands, new eCommerce marketplaces, and the launch of a tool and equipment hire business.

Capital expenditure rose to $4.8 million (3.3% of sales), focused on store refurbishments, digital commerce platforms, AI-powered customer management systems, and exclusive brand development. These initiatives are designed to underpin Stealth’s ambitious FY28 growth agenda targeting $300 million in annual sales with an EBITDA margin exceeding 8%.

Omnichannel Reach and Product Innovation Drive Market Penetration

Stealth’s multi-channel approach spans wholesale, company-owned stores, retail resellers, direct-to-business, and direct-to-consumer channels, supported by a broad product portfolio of hundreds of brands. The company’s industrial division serves trade professionals and businesses nationwide through 32 branches and over 200 team members, while its consumer division distributes technology accessories through approximately 3,500 retail reseller stores.

Exclusive distribution agreements with global brands such as Casetify, Belkin, Ember, and the launch of private-label brands like RIVO are expanding Stealth’s market footprint. The company is also rolling out a customer loyalty rewards program and expanding its online marketplaces, including partnerships with JB Hi-Fi and Woolworths.

Financial Strength and Shareholder Returns

Stealth’s balance sheet remains robust, with net debt reduced by 37.1% to $6.8 million and a net debt to EBITDA ratio of just 0.7x, the lowest in five years. Cash reserves increased 42.3% to $14.4 million, providing flexibility for future growth investments. The Board declared a fully franked final dividend of 1 cent per share, up 19% from the previous year, reflecting confidence in ongoing profitability and cash flow generation.

Looking ahead, Stealth is on track to meet its FY28 targets of $300 million in sales, 8% EBITDA margin, and 5% net profit margin, driven by continued expansion of exclusive brands, new business platforms, and operational efficiencies.