How Propel Funeral Partners Is Driving Growth Through Acquisitions and Leadership Change

Strong Financial Performance and Growth Trajectory

Propel Funeral Partners Limited has delivered a solid set of results for the financial year ended June 2025, with revenue climbing 7.9% to $225.8 million. This growth was underpinned by contributions from 13 acquisitions completed over FY24 and FY25, alongside a 2.3% increase in average revenue per funeral on a comparable basis. Despite a slight 1% contraction in comparable funeral volumes in the second half of the year, the company maintained a stable gross profit margin of 69.8%.

Operating EBITDA rose modestly by 1.4% to $56.2 million, reflecting the combined effects of volume fluctuations, acquisition profiles, and changes in executive remuneration. Operating net profit after tax (NPAT) increased 2.2% to $21.6 million, while earnings per share remained steady at 14.4 cents, impacted by prior capital raising activities.

Acquisitions and Market Position

Propel completed three acquisitions during FY25, investing approximately $13 million in expanding its footprint in New Zealand with purchases including Decra, Twentymans Funeral Services, and Richmond Funeral Home. Since its IPO, the company has deployed around $302 million on acquisitions, averaging $40 million annually, reinforcing its strategy to consolidate a highly fragmented funeral services industry.

With 205 operating locations across Australia and New Zealand, including 41 cremation facilities and 9 cemeteries, Propel’s geographic presence is both extensive and difficult to replicate. The company benefits from favorable demographic trends, with death volumes expected to increase significantly over the coming decades, providing a strong long-term growth tailwind.

Balance Sheet Strength and Cash Flow

Propel’s balance sheet remains robust, with net debt of $132 million and a net leverage ratio improving to 2.1 times, well within covenant limits. The company holds $143 million in available funding capacity, positioning it well for future acquisitions or strategic investments. Operating cash flow increased 4.4% year-on-year, with an impressive cash flow conversion rate of 102.2%, underscoring the company’s efficient cash management and operational discipline.

Leadership Transition and Outlook

Looking ahead, Propel has signaled a positive start to FY26, reporting a record revenue month in July 2025 driven by seasonally stronger funeral volumes and continued growth in average revenue per funeral. The company also announced a planned executive leadership transition effective September 2025, with co-founders Fraser Henderson and Lilli Rayner stepping into co-CEO roles following the retirement of Managing Director Albin Kurti. Additionally, the Group Financial Controller, Arash Noaeen, will be promoted to Chief Financial Officer.

Propel continues to emphasize sustainability initiatives, including solar panel installations and energy-efficient technologies, alongside strong governance and community engagement. The company’s defensive market position, experienced management team, and favorable industry dynamics suggest a resilient outlook, though the timing of future acquisitions remains uncertain.