Propel Funeral Partners (PFP) H1 2026 earnings summary

Executive summary

• Revenue for 1H FY26 rose 3.1% year-over-year to AUD 118.8 million, with operating EBITDA up 1.3% to AUD 30.3 million and operating NPAT up 1.2% to AUD 12.4 million.

• Funeral volumes increased 3.0% to 11,898, with average revenue per funeral at AUD 6,729, up ~2% on a comparable basis.

• Cash flow conversion remained strong at 95.4%, and an interim dividend of 7.5 cents per share was declared, fully franked, with an 83% payout ratio.

• Acquisitions included Jones & Co, Broadway, and Jacobsen in New Zealand, plus four freehold properties.

• The business benefits from favorable demographics and a fragmented industry, supporting further acquisition opportunities.

Financial highlights

• Gross profit margin was 69.7%, in line with the prior year.

• Operating EBITDA margin was 25.5%, slightly down from 26.0% in 1H FY25, mainly due to acquisitions and revenue mix.

• Operating costs were about 44% of revenue, favorable to FY 2025 and in line with PCP.

• Net cash from operating activities was AUD 20.5 million, up 8.6% year-over-year.

• Operating EPS increased 1.2% to 9.0 cents per share.

Outlook and guidance

• Expects to benefit from favorable demographic trends, improved debt pricing, and recent/future acquisitions in Australia and New Zealand.

• Market share expected to grow through acquisitions and organic expansion.

• Easier comparable period ahead due to prior year contraction in organic funeral volumes.

• Timing of future acquisitions remains uncertain.