Leadership Changes and Acquisition Pace Pose Questions for Propel’s Next Chapter

Strong Financial Performance Amid Industry Growth

Propel Funeral Partners Limited has reported another record year for FY25, continuing its trajectory of steady revenue and earnings growth despite a temporary contraction in industry death volumes. Revenue increased by 7.9% to $225.8 million, supported by a 4.4% rise in funeral volumes and a 2.3% increase in average revenue per funeral. Operating EBITDA rose to $56.2 million, while operating net profit after tax (NPAT) reached $21.6 million. The company maintained a robust cash conversion rate of 102%, underscoring operational efficiency.

Capital management remains disciplined, with a gearing ratio of 27% and a net leverage ratio well below covenant limits at 2.1 times. Propel declared fully franked dividends of 14.4 cents per share, consistent with the prior year, rewarding shareholders amid ongoing growth.

Acquisition-Led Expansion and Market Position

Propel’s acquisition strategy continues to be a key driver of growth. The company added nine locations during FY25 through three acquisitions and has already completed or signed two more in FY26, expanding its footprint to 208 locations across Australia and New Zealand. These include 41 cremation facilities and nine cemeteries, with 126 properties owned outright. Since its 2017 IPO, Propel has committed approximately $306 million to acquisitions, consolidating a highly fragmented death care industry.

The company benefits from favourable demographic trends, with death volumes in Australia and New Zealand forecast to increase significantly over the coming decades. Propel estimates its market share in Australia has grown from around 1% in 2015 to approximately 9% in 2024, while in New Zealand it holds a mid-teens share, positioning it as the second largest provider in both countries.

Leadership Transition and Governance Updates

2025 marked a significant leadership transition for Propel. After 13 years as Chair, Brian Scullin stepped down, with Naomi Edwards appointed as the new Chair. Co-Founders Fraser Henderson and Lilli Rayner were promoted to Co-CEOs, bringing nearly two decades of collaboration to the helm. Arash Noaeen was elevated to Chief Financial Officer, having served as Group Financial Controller for eight years. The Board also welcomed Neil Little, former President of the Funeral Directors Association of New Zealand, while thanking retiring director Peter Dowding for his service.

The Board addressed shareholder concerns following a first strike on the 2024 Remuneration Report, resulting in improved support for remuneration resolutions at the AGM. The company’s governance framework appears strengthened to support its long-term strategy.

Positive Start to FY26 and Outlook

Propel reported a strong start to FY26, with Q1 revenue of $63.5 million and operating EBITDA of $17 million, both up approximately 3% on the prior corresponding period. Funeral volumes increased by around 1%, and average revenue per funeral grew by 2.7%. While death volumes can fluctuate seasonally, Propel’s outlook remains positive, underpinned by demographic tailwinds and a healthy acquisition pipeline.

The company reiterated its focus on consolidating the fragmented death care sector, leveraging its scale and capital capacity to pursue both organic and inorganic growth opportunities. With $140 million in available funding capacity, Propel is well positioned to continue expanding its network and shareholder value.