Propel Projects AUD 220-225M Revenue with FY25 EBITDA of AUD 54-56M
Propel Funeral Partners has released its FY25 financial guidance projecting steady revenue growth despite temporary industry volume contraction, alongside announcing the upcoming retirement of its Managing Director and Co-Founder.
- FY25 revenue guidance between AUD 220-225 million
- Operating EBITDA forecasted at AUD 54-56 million
- Temporary contraction in funeral volumes expected in FY25
- Managing Director Albin Kurti to retire on 31 August 2025
- Succession plan well advanced with leadership announcement due by 30 June 2025
FY25 Financial Outlook
Propel Funeral Partners, Australia's second-largest death care provider, has outlined its financial expectations for the 2025 fiscal year during the Bell Potter Emerging Leaders Conference. The company projects revenue in the range of AUD 220 million to AUD 225 million, supported by an operating EBITDA forecast between AUD 54 million and AUD 56 million. This guidance reflects a cautious stance amid a forecasted temporary contraction in funeral volumes, estimated at around -2% in the second half of FY25.
Despite this short-term dip, Propel anticipates a rebound driven by organic growth and contributions from recent acquisitions. The company’s revenue per funeral is expected to grow broadly in line with inflation, maintaining a steady trajectory in a market influenced by demographic trends such as an ageing population.
Market Position and Growth Strategy
Operating from 205 locations across Australia and New Zealand, including 41 cremation facilities and 9 cemeteries, Propel continues to expand its footprint in a highly fragmented industry. Since its IPO in 2018, the company has deployed approximately AUD 302 million on acquisitions, averaging around AUD 40 million annually. Recent acquisitions in New Zealand, such as Decra and Twentymans Funeral Services, underscore Propel’s commitment to growth through strategic consolidation.
Propel’s market share has increased steadily, now estimated at around 21% in Australia’s funeral volumes, positioning it as a formidable competitor to InvoCare, which holds approximately 38%. The company’s strong cash flow conversion, averaging near 99% since FY15, further supports its acquisition capacity and operational resilience.
Leadership Transition and Succession Planning
In a significant leadership update, Managing Director and Co-Founder Albin Kurti announced his retirement effective 31 August 2025, concluding 14 years at the helm. The Board has indicated that the succession plan is well advanced, with internal candidates poised to step into leadership roles. An official announcement regarding Propel’s future leadership is expected by 30 June 2025.
Kurti will continue to lead the company through the transition period, ensuring an orderly handover. This planned succession reflects Propel’s focus on stability and continuity amid evolving market dynamics.
Outlook and Industry Context
Propel’s guidance and strategic moves come against a backdrop of demographic shifts, including an ageing population and a projected increase in death rates over the coming decades. While short-term volume fluctuations are expected, the company’s diversified brand portfolio and geographic presence provide a buffer against regional variances.
Investors will be watching closely how the leadership transition unfolds and how effectively Propel navigates the temporary volume contraction while pursuing growth opportunities in a fragmented market.
Bottom Line?
As Propel navigates leadership change and market fluctuations, its FY25 guidance sets the stage for a pivotal year ahead.
Questions in the middle?
- Who will be the successor to Managing Director Albin Kurti?
- How will Propel manage acquisition timing amid uncertain market conditions?
- What impact will temporary funeral volume contractions have on long-term growth?
