Key Highlights

  • Propel Funeral Partners reported FY26 Revenue of $226.6 million, in line with the prior year and within its guidance range of $225 to $230 million.
  • Operating EBITDA fell 1.6% to $55.3 million and Operating NPAT declined 4.0% to $20.7 million, both within previously issued guidance ranges.
  • The company declared total dividends of 14.4 cents per share fully franked for FY26, unchanged from FY25, including a final Dividend of 6.9 cents per share.
  • Five acquisitions totalling approximately $12 million were completed during and since FY26, alongside an extension of the company's Debt facilities to October 2029.

FY26 Financial Results

Propel Funeral Partners Limited (ASX:PFP), trading at $3.17 and down 4.80% on the day of its results release, reported revenue of $226.6 million for the year ended 30 June 2026, an increase of 0.3% on the $225.8 million recorded in FY25 and within the company's guidance range of $225 million to $230 million.

Operating EBITDA for the year came in at $55.3 million, down 1.6% from $56.2 million in FY25, though still within the company's guidance range of $54.5 million to $56.5 million. The EBITDA Margin contracted by 50 basis points to 24.4% from 24.9% in the prior year. Operating NPAT declined 4.0% to $20.7 million from $21.6 million, while Operating EPS fell 4.1% to 15.0 cents from 15.7 cents. Cash Flow conversion was 100.7%, down 150 basis points from 102.2% in FY25.

The company attributed part of the year-on-year softness to unfavourable foreign exchange impacts, estimating approximately $3 million of adverse impact to revenue and approximately $1 million to Operating EBITDA, resulting from a more than 10% strengthening of the Australian dollar against the New Zealand dollar during the period.

Dividend

The board declared a fully franked final dividend of 6.9 cents per share, bringing total dividends declared in connection with FY26 to 14.4 cents per share fully franked, unchanged from the 14.4 cents declared in FY25. This represents a Dividend Yield of approximately 4.6%, or approximately 6.6% when grossed up for tax, based on the company's closing share price of $3.13 on 30 June 2026.

The final dividend will be paid on 1 October 2026, with a Record Date of 2 September 2026. Since its initial public offering in November 2017, Propel has declared fully franked dividends totalling approximately $1.09 per share, or approximately $1.56 per share when grossed up for tax.

Funeral Volumes and Average Revenue Per Funeral

Propel performed approximately 22,850 funerals during FY26, representing growth of 1.1% on the prior year, although the company noted a contraction in comparable funeral volumes of approximately 2%. Average Revenue Per Funeral was $6,673 for the year, reflecting comparable growth of approximately 2% on the prior year, with impacts from pricing, foreign exchange movements, funeral mix, and recent acquisitions that generated below-network Average Revenue Per Funeral also factored into the result.

Acquisitions and Balance Sheet

During and since FY26, Propel completed five acquisitions totalling approximately $12 million, comprising Jones & Co and Broadway, funeral services providers operating around Tauranga and Matamata in New Zealand; Jacobsen, a memorial and headstone manufacturer based in Auckland; Collingwood Funeral Home in Rotorua; Leishman Funeral Services in Balclutha; and Evans Funeral Services, including Gisborne Tairawhiti Cremation Services, operating around Gisborne. Since its 2017 IPO, the company has deployed approximately $314 million on acquisitions in total.

As at 30 June 2026, Propel reported total Assets of approximately $650 million, including approximately $252 million of freehold properties, representing approximately 60% of the company's market capitalisation. The company's gearing ratio stood at approximately 31%, with a net Leverage Ratio of approximately 2.2 times against a covenant limit of 5.0 times.

During FY26, Propel and its existing debt financier, Westpac Banking Corporation, agreed to extend the Maturity date of the company's $275 million debt facilities to October 2029 from October 2027, with no changes to existing covenant limits. The parties also established a new $50 million Accordion Facility and agreed to improved pricing, including a reduction in the risk margin. The company reported approximately $169 million of total funding capacity, including the new Accordion Facility.

Outlook

In the month of July 2026, Propel generated revenue of approximately $21.5 million, which included a $0.6 million unfavourable foreign exchange impact. The company noted comparable Average Revenue Per Funeral growth exceeding 3% in July, above its long-term compound annual growth rate, alongside resilient funeral volumes despite a benign winter flu season described as the lowest recorded in five years, and a material contraction in industry death volumes across Queensland, New South Wales, Victoria, and Tasmania, which the company expects to be temporary given that death volumes fluctuate over short time horizons. Propel confirmed it will provide a FY27 trading update at its Annual General Meeting in November 2026.

Conclusion

Propel Funeral Partners' FY26 result shows revenue holding broadly steady against the prior year, while Operating EBITDA and Operating NPAT both declined, partly reflecting unfavourable foreign exchange movements and a contraction in comparable funeral volumes. The company maintained its total dividend at 14.4 cents per share and continued its Acquisition strategy across Australia and New Zealand, while also securing an extension and expansion of its debt facilities. Commentary on trading in July 2026 points to some Volume and pricing dynamics that the company will address further in its FY27 trading update at the November 2026 Annual General Meeting.