Propel Funeral Partners (PFP) H2 2025 earnings summary

Executive summary

• FY25 delivered record revenue of $225.8 million, up 7.9% year-over-year and above guidance, with operating EBITDA rising 1.4% to $56.2 million, despite industry volume headwinds in the second half, which are expected to be temporary.

• Operating NPAT increased 2.2% to $21.6 million; Operating EPS was 15.7cps.

• Cash flow conversion was strong at 102.2%.

• Leadership transition to co-CEOs and new CFO was smooth, with no change in strategic direction; effective September 2025.

• Propel operates 205 locations across Australia and New Zealand, with a strong track record of growth since IPO.

Financial highlights

• Revenue increased 7.9% year-over-year to $225.8 million, above the top end of guidance.

• Operating EBITDA rose 1.4% to $56.2 million; margin was 24.9%.

• Operating NPAT was $21.6 million, up 2.2% year-over-year.

• Gross margin was 69.8%, stable year-over-year; comparable gross margin increased 20bps.

• Cash flow conversion improved to 102.2%; distributable earnings payout ratio was 93%.

Outlook and guidance

• Positive start to FY26, with July 2025 revenue exceeding $21.5 million and seasonally strong funeral volumes.

• Margins for FY26 expected around mid-25% or slightly above if volumes revert to long-term trends.

• Company expects to benefit from favorable demographics and continued industry fragmentation.

• Anticipates further growth from recent and potential future acquisitions.

• Executive leadership transition effective September 2025.