Propel Funeral Partners has reported record FY25 results, exceeding revenue and EBITDA guidance while maintaining steady dividends and announcing a key executive transition.
- Revenue rises 7.9% to $225.8 million, beating guidance
- Operating EBITDA grows 1.4% to $56.2 million
- Funeral volumes increase 4.4% despite industry headwinds
- Three acquisitions completed totaling ~$13 million
- Leadership transition effective September 1, 2025
Record Financial Performance
Propel Funeral Partners Limited (ASX, PFP) has delivered a standout financial year for FY25, surpassing its own guidance with revenue reaching $225.8 million, a 7.9% increase over the prior year. Operating EBITDA also edged higher by 1.4% to $56.2 million, reflecting solid operational execution despite a slight contraction in the broader death care industry during the second half of the year.
Operating net profit after tax (NPAT) rose 2.2% to $21.6 million, while the company maintained a fully franked dividend of 14.4 cents per share, consistent with FY24. This steady dividend payout underscores Propel’s commitment to returning value to shareholders amid ongoing market uncertainties.
Growth Amid Industry Challenges
Notably, Propel’s funeral volumes increased by 4.4% to 22,602 funerals, bucking a roughly 3% decline in overall industry death volumes in the latter half of FY25. This resilience is attributed to the company’s strategic acquisitions and pricing power, with average revenue per funeral rising 2.3% in line with inflation.
During FY25, Propel completed three acquisitions in New Zealand, including Decra, a headstone supplier, and two long-established funeral service providers, Twentymans Funeral Services and Richmond Funeral Home. These deals, totaling approximately $13 million, further expand Propel’s footprint and service offerings in the region.
Strong Balance Sheet and Funding
Propel’s financial position remains robust, with total assets of around $655 million and a gearing ratio of approximately 27%. The company holds $143 million in available funding capacity, providing ample flexibility for future acquisitions or capital investments. Net leverage stands at 2.1 times, well within covenant limits, supporting confidence in Propel’s balance sheet management.
Leadership Transition and Outlook
Looking ahead, Propel is navigating a significant leadership transition. Co-founders Fraser Henderson and Lilli Rayner will assume co-CEO roles effective 1 September 2025, following the retirement of Managing Director Albin Kurti. Meanwhile, Group Financial Controller Arash Noaeen steps up as Chief Financial Officer. This leadership refresh aims to sustain Propel’s growth momentum and strategic focus.
The company’s outlook for FY26 is cautiously optimistic, supported by favorable demographic trends in Australia and New Zealand, a strong funding position, and ongoing acquisition opportunities in a fragmented market. Early signs are positive, with July 2025 marking a record revenue month exceeding $21.5 million.
Propel’s ability to adapt to fluctuating death volumes and maintain steady growth will be critical as it seeks to consolidate its position as a leading death care services provider in the region.
Bottom Line?
Propel’s record FY25 results and leadership renewal set the stage for continued growth amid evolving industry dynamics.
Questions in the middle?
- How will the new co-CEO structure impact Propel’s strategic direction?
- What is the timeline and scale for future acquisitions in FY26?
- How sustainable is the recent growth given industry death volume fluctuations?