Propel Funeral Partners reported a 1.1% increase in funeral volumes for the year ended June 30, 2026, but its shares fell 6.6% to $3.11 after the company posted flat revenue and compressed margins.
The group’s total revenue rose 0.3% to $226.6 million in FY26 from $225.8 million in FY25, while operating EBITDA declined 1.6% to $55.3 million. The EBITDA margin narrowed by 50 basis points to 24.4%, reflecting pricing pressure and foreign exchange headwinds that reduced revenue by approximately $3.2 million. Comparable gross margin improved marginally to 69.9%, up 10 basis points year-over-year.
Funeral volumes reached 22,854 in FY26, up from 22,604 in the prior year, with average revenue per funeral declining about 2% to $6,673 due to acquisition mix and FX effects. Operating net profit after tax fell 4% to $20.7 million, though cash flow conversion strengthened to 100.7%, marking the sixth consecutive year above 95%.
The company maintained its dividend at 14.4 cents per share, a payout ratio of 97% of distributable earnings. Propel operates 213 locations across Australia and New Zealand, with 73% of revenue generated in Australia and 27% in New Zealand. The group’s market share remains around 10%, positioning it as the second-largest operator in the combined market.
Propel completed five acquisitions during and since FY26, deploying roughly $12 million in consideration to add 10 locations. Since its FY18 IPO, the company has deployed approximately $314 million on acquisitions, averaging $37 million annually. As of June 30, 2026, net debt stood at $151.2 million, with a net leverage ratio of 2.2x, well below its covenant limit of 5.0x.
Looking ahead, Propel highlighted accelerating death volume growth projections, with a 2.8% compound annual growth rate expected from 2026 to 2035, driven by demographic trends including the aging of the baby boomer cohort. The company’s next full trading update is scheduled for its AGM in November 2026.
