Australian parts distributor Supply Network Ltd (ASX:SNL) has outlined ambitions for fiscal year 2026 that align closely with independent forecasts.

Morningstar projects revenue for FY26 of approximately A$402 million—a growth rate of around 15 per cent from FY25’s roughly A$349 million—reflecting the company’s target to add around A$50 million in sales next year.

In their FY25 results, the company reported revenue of circa A$349.9 million and a net profit of about A$40.0 million, representing a 21 per cent increase in profit and a margin of 11.4 per cent.

Management has indicated plans to maintain the growth run via branch expansion, increased capacity and upgrades to their enterprise resource-planning and sales platforms.

Analysts expect net profit for FY26 to rise by about 21 per cent to approximately A$49 million, with margin expansion anticipated from the current 11 per cent level to around 14 per cent by 2030. While investor sentiment remains positive—reflected in the stock’s year-to-date gain of roughly 12 per cent—valuations are drawing caution.

The median target price among four analysts is A$41.50, while independent fair-value estimates point to a lower level of around A$26, suggesting the shares are trading at a premium.

With the company operating a network of distribution centres across Australia and New Zealand under the Multispares brand, its growth strategy hinges on leveraging aftermarket parts supply to road-transport fleets and capitalising on broad demand in the replacement parts market.

While the growth trajectory appears credible, analysts highlight the potential for execution risk—particularly in managing system upgrades and ensuring margin expansion.

Overall, Supply Network is positioned for a strong FY26 revenue leap, yet the elevated valuation invites scrutiny from investors balancing growth prospects against price.

The stock’s premium rating implies confidence in continued margin improvement and consistent operational execution over the coming years.