Propel Funeral Partners (PFP) H2 2026 earnings summary

Executive summary

• Revenue for FY26 reached $226.6 million, a 0.3% increase year-over-year and within guidance, driven by acquisitions and a 2% rise in average revenue per funeral, offset by lower comparable funeral volumes and adverse FX impacts.

• Operating EBITDA was $55.3 million, down 1.6% from the prior year but within guidance, reflecting volume contraction and FX headwinds, partially offset by cost control and acquisition contributions.

• Operating NPAT was $20.7 million, a 4.0% decrease year-over-year, with non-operating items mainly related to acquisition costs and asset disposals.

• Cash flow conversion remained strong at over 100%, and the company declared a fully franked dividend of 14.4 cents per share, consistent with the prior year and a payout ratio of 97%.

• The network expanded by six locations, with five acquisitions completed during and since FY26, and ~$314 million deployed on acquisitions since IPO.

Financial highlights

• Gross margin was 69.8%, with comparable gross margin at 69.9%, 10 bps above FY25.

• Operating EBITDA margin was 24.4%, down from 24.9% in FY25, mainly due to recent acquisitions and operating de-leverage.

• Cash flow conversion was 100.7%, down 150bps from FY25.

• Net debt at year-end was $151.2 million; freehold properties valued at ~$252 million.

• Dividend per share maintained at 14.4cps, fully franked.

Outlook and guidance

• Favorable demographic trends and recent acquisitions expected to drive long-term growth, with death volumes forecast to increase by 2.8% per annum.

• July 2026 revenue was ~$21.5 million, with average revenue per funeral up over 3% despite a temporary contraction in industry death volumes.

• FY27 trading update to be provided at the AGM in November 2026.