Propel Funeral Partners (PFP) H1 2026 earnings summary

Executive summary

• Revenue 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 AUD 0.075 per share was declared, fully franked, with an 83% payout ratio.

• Two acquisitions were completed, adding three locations and four freehold properties to the network.

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

Financial highlights

• Gross margin was 69.7%, comparable to 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 cash flows increased 2.6% year-over-year.

Outlook and guidance

• Market share expected to grow through acquisitions and organic expansion, benefiting from favorable demographic trends in Australia and New Zealand.

• Expects to benefit from improved debt pricing and recent acquisitions.

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

• Industry fragmentation provides ongoing acquisition opportunities, though timing is uncertain.