How did Stealth Group (ASX:SGI) perform in the first half of FY26?

Stealth Group delivered record financial results for the half-year ended 31 December 2025, headlined by gross sales of $82.2 million, an 11.8% increase over the previous year. Statutory revenue rose to $72 million, while net profit after tax surged 51.4% to $1.6 million on a like-for-like basis.

Is Stealth Group (ASX:SGI) profitable following its recent acquisitions?

Yes, Stealth Group is profitable and showing strong earnings momentum. The company reported an EBITDA of $5.3 million for H1 FY26, representing an 18.8% increase compared to the prior corresponding period.

What does the $19.5 million capital raise mean for Stealth Group's balance sheet?

The capital raise has significantly de-risked the business by providing a massive cash cushion and strengthening the balance sheet. Net assets jumped 130.4% to $49.5 million, and cash on hand increased to $32.5 million.

How much debt does Stealth Group (ASX:SGI) currently have?

Stealth Group has materially improved its debt position, reducing net debt to $7.3 million. More importantly for traders tracking solvency, the company’s net gearing dropped from 18.3% to 12.8% during the half-year period.

What is the long-term growth strategy for Stealth Group (ASX:SGI)?

Management is focused on a massive scale-up, targeting more than $500 million in annual sales by the 2028 financial year (FY28). The strategy relies on transforming the business from a traditional distributor into a larger, multi-sector industrial player.

What are the main bull points for ASX:SGI after these results?

The bull case rests on high-growth metrics, including a 51.4% jump in NPAT and a very strong cash position of $32.5 million. Improving margins and a decreasing gearing ratio suggest the company is becoming more efficient as it scales.

What are the key risks or bear points for Stealth Group investors?

A primary risk is execution risk; reaching a $500 million sales target by FY28 requires flawless integration of acquisitions and sustained organic growth in a competitive distribution market.

What is the current market valuation and share price for Stealth Group (ASX:SGI)?

At the time of the 1H FY26 report, Stealth Group's share price was $1.22. Investors should weigh this price against the reported NPAT growth of 51.4% and the strengthened net asset position of $49.5 million to determine if the stock is trading at a fair multiple relative to its accelerated growth profile.

Image for illustrative purposes only. Not a real photo.

Stealth Group announces record H1 FY26 results

Written by Brie CarterPublished Feb 25, 2026, 4:24 AMLast Updated Jul 6, 2026, 10:45 AM

Stealth Group (ASX:SGI) reported a record-breaking financial performance for the half-year ended Dec. 31, 2025, signalling a major milestone in its strategic transformation following the acquisition of Hardware & Building Traders.

The company achieved gross sales of $82.2 million, an 11.8% increase over the prior corresponding period, while statutory revenue rose to $72 million.

The group's profitability showed significant momentum, with EBITDA climbing 18.8% to $5.3 million and net profit after tax growing by 51.4% to $1.6 million on a like-for-like basis.

The figures underscore a robust three-year compound annual growth rate, with EBITDA and NPAT growing at 30.2% and 75.0%, respectively.

Stealth’s balance sheet has strengthened considerably, supported by a $19.5 million capital raise.

Net assets reached $49.5 million, a 130.4% increase, while cash on hand jumped to $32.5 million.

The company also reduced its net gearing to 12.8%, down from 18.3%, and lowered its net debt to $7.3 million.

Group Managing Director & CEO Michael Arnold noted that the results mark a "pivotal inflection point" as the company accelerates toward its FY28 target of $500 million+ in sales.

At the time of reporting, Stealth Group's share price was $1.22.

Stealth Group announces record H1 FY26 results

Frequently asked questions

Assets related to this article