Can Supply Network Limited (ASX: SNL) maintain its stock momentum after a strong FY25 performance?

Supply Network Limited, which trades on the Australian Securities Exchange under the ticker symbol ASX: SNL, has seen its stock price rise significantly over the past twelve months. As of October 24, 2025, the company’s share price stood at AUD 36.93, reflecting a 22.20 percent return over the year. This performance has outstripped both the broader ASX 200 Index, which gained approximately 12.3 percent in the same period, and the average sector return within the consumer cyclicals category, which recorded a more modest 2.5 percent increase.

The positive trajectory for Supply Network Limited is built on consistent financial delivery, capacity upgrades across its operations in Australia and New Zealand, and a clear focus on sustainable organic growth. Operating under the Multispares brand, the company specializes in the importation and distribution of replacement parts for commercial vehicles, particularly trucks and buses. While this may seem like a commoditized and saturated market at face value, Supply Network Limited has continued to differentiate itself through a decentralized operational structure, regionally tailored service models, and highly optimized warehousing and logistics.

How did Supply Network Limited perform financially in FY25, and what are the key indicators?

For the fiscal year ended June 30, 2025, Supply Network Limited reported robust top-line and bottom-line growth. Consolidated sales revenue increased by 15.3 percent year over year, reaching AUD 348.8 million. This compares with AUD 302.6 million in the previous year. Net profit after tax (NPAT) came in at AUD 40 million, marking a significant 21 percent increase from the prior year’s AUD 33 million result. Basic earnings per share rose to 92.95 cents from 78.61 cents in FY24, maintaining a multi-year upward trend.

Operating earnings before interest and tax (EBIT) grew from AUD 49.3 million in FY24 to AUD 58.4 million, reflecting the company’s ability to scale profitably while managing cost structures across its branch network. Despite a slight decline in return on average equity from 36.5 percent in FY24 to 33.2 percent in FY25, the overall capital efficiency remains among the highest in the ASX-listed mid-cap universe.

Dividend performance also remained strong. The company declared total dividends of 65 cents per share for FY25, up from 51 cents in the previous year. This represents a dividend increase of over 27 percent, reaffirming its shareholder-friendly capital return policy.

How did Supply Network Limited expand its branch and logistics footprint across Australia and New Zealand in FY25?

Supply Network Limited undertook a series of targeted infrastructure investments during the year to expand capacity and enhance service delivery. Substantial upgrades were completed at key sites in Darra, Queensland and Adelaide, South Australia. Smaller capacity enhancements were rolled out in Auckland, Christchurch, and Dunedin in New Zealand, as well as in the Sydney suburbs of Pemulwuy, Milperra, and Smeaton Grange.

Two new facilities were also brought online. The company launched a branch in Wangara, Western Australia, and established a locally focused parts store in Karratha, WA. These developments have strengthened the company’s presence in resource-centric and remote logistics corridors, enabling faster turnaround times for fleet operators in these regions.

In addition, scanning technology was rolled out across all Australian and New Zealand branches to improve accuracy and efficiency in pick, pack, and warehouse maintenance processes. This digital integration will play a central role in reducing order errors, speeding up fulfillment, and increasing staff productivity.

How is Supply Network Limited positioning its growth strategy across FY26 and through its new three‑year business plan to FY28?

Looking ahead to FY26, Supply Network Limited has set a target to increase revenue by approximately AUD 50 million. As per the company’s AGM presentation, the business is already on track to meet this ambitious target in the early stages of the current financial year. The growth will be fueled by both existing demand and new branch capacity being brought online.

The company has already signed agreements to further expand branch capacity in Brisbane and Toowoomba, Queensland, and in Perth, Western Australia, with implementation scheduled for early FY27. Planning is also underway for capacity additions in Sydney, slated for FY28. Meanwhile, the New Zealand network will be bolstered by a new facility in Rosedale, North Auckland, which is expected to commence trading in March 2026. This location will not only improve service delivery in North Auckland and coastal regions but also alleviate operational pressure from the company’s current Auckland branch.

In terms of long-term direction, the board has approved a new three-year business plan running through FY28. This plan builds on the company’s existing strategy and is tailored to the expanded scale of operations and evolving market dynamics. The overarching goal remains to deliver long-term organic growth through disciplined investment, operational efficiency, and exceptional customer service.

How is the Multispares model differentiated in a competitive transport parts sector?

Despite operating in a segment that is often viewed as transactional and low-margin, Supply Network Limited has built a differentiated business model around service complexity, product expertise, and regional responsiveness. Through the Multispares brand, each trading entity operates under its own management team, enabling faster decision-making and market-specific customization.

The company’s services go beyond parts distribution. It also provides parts interpretation using an extensive in-house catalogue, product procurement, supply management, and diagnostic support. This model has enabled it to capture not just transactional revenue but also deep customer stickiness—particularly important in the fleet-heavy segments of road transport and logistics.

Staff training, succession planning, and IT integration remain key pillars of this model. The transition to a new Enterprise Resource Planning (ERP) system and a reengineered sales interface is designed to further enhance responsiveness and data-driven insights. These technology upgrades are being carefully managed to ensure there is no disruption to the company’s service standards.

What are the broader sectoral trends affecting Supply Network Limited’s operating environment?

The road transport equipment replacement parts sector is undergoing a quiet transformation. Increasing electronic complexity in trucks and buses, alongside stricter emissions regulations, is leading to demand for more specialized components. While this adds operational challenge, it also opens the door for companies like Supply Network Limited to deepen their role as technical partners rather than just parts vendors.

Heavy vehicle manufacturers are also ramping up their downstream service offerings, creating competitive pressure. However, Supply Network Limited sees this as a prompt to further differentiate on customer intimacy and speed of service rather than engage in margin-destructive pricing.

In this context, the company’s agile network, experienced staff, and investment in smart warehousing provide a meaningful competitive edge. The company is not merely defending its territory—it is advancing methodically into underserved areas, building moat-like regional service density.

How is the market pricing Supply Network Limited’s strategic expansion, and what signals are emerging from recent investor sentiment and trading activity?

Investor sentiment toward Supply Network Limited remains firmly positive. On the day of the AGM, the company’s stock price rose 4.44 percent, with a total trading turnover of approximately AUD 2.38 million. Daily volume levels remain in line with four-week averages, suggesting steady institutional and retail interest.

With a current price-to-earnings ratio of 39.84, Supply Network Limited trades at a premium compared to the broader market. Yet investors appear comfortable paying this premium due to the company’s strong track record, high return on equity, and consistent dividend growth.

Broker sentiment supports this narrative, with two analysts maintaining Buy ratings and two Hold ratings. There are currently no Sell recommendations. In sector rankings, the company is positioned 22nd out of 154 companies in the consumer cyclicals category and 276th across the entire ASX.

What are the most important investor takeaways from Supply Network Limited’s FY25 results and FY26 outlook?

• Supply Network Limited reported FY25 net profit after tax of AUD 40 million, up 21 percent year-on-year, alongside a 15.3 percent increase in total sales revenue to AUD 348.8 million.
• Basic earnings per share rose to 92.95 cents, and total dividends paid increased to 65 cents per share, reflecting strong capital returns and consistent profitability.
• The company completed major network upgrades across multiple locations, including Brisbane, Adelaide, Auckland, and Sydney, while also opening new branches in Wangara and Karratha.
• Scanning technology was rolled out across all Australian and New Zealand sites, enhancing warehouse efficiency, order accuracy, and digital infrastructure readiness.
• A new facility in North Auckland is scheduled to open in March 2026 to improve regional coverage and relieve pressure on the company’s existing Auckland operations.
• Supply Network Limited has set a revenue growth target of AUD 50 million for FY26 and received board approval for a new three-year strategic plan through FY28.
• The Multispares operating model continues to outperform by focusing on parts interpretation, service delivery, and region-specific logistics rather than just inventory scale.
• The company is positioning itself to capitalize on increased vehicle complexity and emissions-related aftermarket parts demand, using its decentralized and customer-first network strategy.
• Investor sentiment remains bullish, with a 22.2 percent one-year stock return and a strong price-to-earnings multiple of 39.84, reflecting confidence in the company’s expansion roadmap.
• The stock ranks in the top 25 of its sector on the Australian Securities Exchange and is supported by stable trading volume, strong institutional interest, and consistent broker coverage.