Propel Projects FY26 Revenue Between $225 Million and $230 Million Amid Three NZ Acquisitions

Strategic New Zealand Acquisitions to Boost Regional Presence

Propel Funeral Partners (ASX:PFP) is deepening its footprint in New Zealand with binding agreements to acquire three regional funeral service providers for up to A$9.1 million. The acquisitions include Evans Funeral Services and Gisborne Tairawhiti Cremation Services in Gisborne, Leishman Funeral Services in Balclutha, and Collingwood Funeral Home in Rotorua. These deals bring four operational locations, including a cremation facility, into Propel’s network.

Collectively, the acquired businesses generated approximately A$4 million in revenue and conducted over 700 funerals in the last financial year. Propel plans to fund the A$8.3 million upfront cash consideration through existing debt facilities, with an additional earn-out of up to A$0.8 million contingent on future financial performance over four years. Completion is expected in late FY26 or early FY27, subject to customary conditions such as lessor consents and due diligence. The company anticipates the acquisitions will be earnings accretive in their first year.

FY26 Guidance Reflects Modest Growth and FX Challenges

Alongside the acquisitions, Propel provided FY26 guidance projecting revenue between A$225 million and A$230 million and operating EBITDA in the range of A$54.5 million to A$56.5 million. This outlook incorporates an estimated A$4 million revenue and A$1 million EBITDA contribution from the new acquisitions, alongside a roughly 1% increase in funeral volumes to around 22,850 services.

The company expects comparable average revenue per funeral to grow by about 2%, stable gross margins, and operating costs rising approximately 2.5%. However, Propel flagged a significant headwind from currency movements, with the Australian dollar strengthening by more than 10% against the New Zealand dollar, leading to unfavourable foreign exchange translation effects on reported earnings.

Building on a Track Record of Acquisition-Fueled Growth

This latest acquisition wave follows Propel’s recent string of deals that have steadily expanded its presence across Australia and New Zealand. The company currently operates 209 locations, including 41 cremation facilities and 9 cemeteries, cementing its position as the second largest death care provider in the region. Propel’s FY25 results showed revenue growth to A$225.8 million and operating EBITDA of A$56.2 million, reflecting both organic growth and acquisition contributions.

With the NZ acquisitions expected to close in the coming months, Propel is poised to further consolidate its market share, though the impact of currency volatility remains a key variable to monitor. The company’s ability to integrate these new operations smoothly and achieve the earn-out milestones will be critical to sustaining earnings momentum.