Propel Funeral Partners (PFP) H2 2025 earnings summary

Executive summary

• FY 2025 was a record year, with revenue increasing 7.9% year-over-year to AUD 225.8 million, driven by acquisitions and organic growth, and EBITDA exceeding guidance despite industry volume headwinds in the second half, which are expected to be temporary.

• Operating EBITDA rose 1.4% to AUD 56.2 million, with a margin of 24.9%.

• Operating NPAT rose 2.2% to AUD 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 and effective September 2025.

Financial highlights

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

• Operating EBITDA rose 1.4% to AUD 56.2 million; operating impact was AUD 21.6 million, up 2.2%.

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

• Cash flow conversion was strong at 102.2%.

• Final dividend of AUD 0.07 per share, total FY 2025 dividend AUD 0.144 per share, fully franked.

Outlook and guidance

• Positive start to FY 2026, with July 2025 revenue exceeding AUD 21.5 million and seasonally strong funeral volumes.

• Margins for FY 2026 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 in Australia and New Zealand.

• Continued focus on acquisitions in a fragmented industry, with AUD 143 million funding capacity.

• Executive leadership transition effective September 2025.