Propel Funeral Partners delivers $226.6m FY26 revenue as acquisitions and NZ expansion drive network to 213 locations
In its FY26 results presentation dated 25 August 2026, Propel Funeral Partners outlined a resilient full-year performance, with total revenue of $226.6m (up 0.3%) as acquisitions and continued New Zealand expansion lifted its network to 213 operating locations.
Funeral volumes rose 1.1% to 22,854, while Operating EBITDA eased 1.6% to $55.3m and Operating NPAT declined 4.0% to $20.7m. The dividend was maintained at 14.4 cents per share (cps), unchanged from FY25.
Management framed the year as demonstrating the defensive characteristics of an essential-services operator, with steady earnings and a balance sheet positioned to support continued mergers and acquisitions (M&A).
When big ASX news breaks, our subscribers know first
FY26 snapshot — resilient trading in a defensive essential-services sector
Propel reported growth in revenue and volumes despite a foreign exchange (FX) headwind of approximately $3.2m, alongside disciplined cost control that helped preserve margins. Average Revenue Per Funeral (ARPF) rose approximately 2% on a comparable basis (holding the NZD/AUD exchange rate constant with FY25), with the headline figure impacted by recent acquisitions and FX.
| Metric | FY26 | FY25 | Movement | Why it matters |
|---|---|---|---|---|
| Revenue | $226.6m | $225.8m | ▲0.3% | Growth despite ~$3.2m FX headwind |
| Operating EBITDA | $55.3m | $56.2m | ▼1.6% | Volume/FX pressure, disciplined cost control |
| Operating NPAT | $20.7m | $21.6m | ▼4.0% | Reflects volume and FX impacts |
| Avg Revenue Per Funeral | $6,673 | $6,721 | ~▲2% comparable | Pricing/mix resilience |
| Cash Flow Conversion | 100.7% | 102.2% | ▼150bps | Consistently strong conversion |
What Propel does — inside a scaled, fragmented funeral services market
Propel operates funeral homes, cremation facilities and cemeteries across Australia and New Zealand. According to the presentation, it is the #2 operator in the AU/NZ funeral services industry, holding approximately 10% market share.
The company’s footprint spans 213 operating locations (130 owned and 83 leased), including 42 cremation facilities and 9 cemeteries. Management noted that the diversified geographic network is difficult to replicate, with some businesses dating back to the late 1800s and early 1900s.
Why does this appeal to investors? Funeral services are an essential, non-discretionary need, which supports defensive, recession-resistant demand. Propel operates a decentralised model built on trusted local brands, an approach management positioned as difficult for competitors to replicate.
Revenue diversification across the group is illustrated below:
-
By country: Australia 73% / New Zealand 27%
-
By market: Regional 53% / Metro 47%
-
Revenue mix: Funeral operations 87.6%, cemetery/crematoria/memorial gardens 10.6%, other 1.8%
FY26 financial results in detail
Revenue and margins
Revenue increased 0.3% to $226.6m, driven by comparable ARPF growth of approximately 2% and contributions from acquisitions completed during FY25 and FY26. These were partially offset by comparable funeral volume contraction of approximately 2% and unfavourable FX of approximately $3.2m.
Gross profit margin held steady at 69.8%, with the comparable margin up 10 basis points to 69.9%. Operating EBITDA margin came in at 24.4% (FY25: 24.9%), impacted by the margins of recent acquisitions and operating deleverage.
Cash flow and balance sheet strength
Operating cash flow reached $54.9m, with cash flow conversion of 100.7%. The company ended the period with $12.5m in cash (up from $9.0m) and net debt of $151.2m.
The gearing ratio stood at 30.9% and the net leverage ratio at 2.2x, well within the covenant limit of below 5.0x, providing considerable headroom.
Balance sheet firepower and disciplined capital management
Management positioned the group’s funding capacity as the engine for its acquisition strategy, reporting $169.1m of funding capacity (including a new $50m Accordion Facility).
A debt refinance announced in February 2026 extended the maturity date to October 2029 (previously October 2027), delivered improved pricing and made no changes to existing covenant limits. The fixed charge cover ratio was 3.8x, against a covenant requirement of above 1.75x.
The funding capacity build-up was outlined as follows:
-
Senior debt facility limit $275.0m
-
Less net debt ($151.2m)
-
Undrawn senior debt $123.8m
-
Plus Accordion Facility $50.0m
-
Less acquisition cash commitments ($4.7m) = $169.1m
The dividend was maintained at 14.4cps (fully franked), representing a payout ratio of approximately 97%.
Acquisitions and demographic tailwinds underpin the growth roadmap
Management outlined the group’s growth thesis, noting that Propel has deployed approximately $314m on acquisitions since its IPO in FY18, averaging around $37m per year.
During and since FY26, the company completed 5 acquisitions for approximately $12m in consideration, contributing around $8m in revenue and adding 10 locations (including 5 freehold properties and 1 crematorium). Management pointed to more than 500 independently owned businesses remaining in the market, indicating significant consolidation runway. New Zealand now accounts for 65 of the group’s locations.
The five completions in FY26 built on the momentum from three regional NZ acquisitions announced in June 2026, which added Evans Funeral Services, Leishman Funeral Services, and Collingwood Funeral Home to the network for up to A$9.1 million in total consideration.
Structural demographic tailwinds
The presentation highlighted an ageing-population dynamic as a long-term demand driver. The first of the baby boomer generation, born in 1946, turn approximately 80 in 2026, while the median age of death remains steady at 81–82.
Projected death volume growth was cited at a 2.8% CAGR over 2026–2035 and 2.3% CAGR over 2036–2045. Management framed this demographic wave as a structural, long-term support for funeral volumes.
Recent trading and FY27 outlook
Propel provided an early-period trading update rather than a formal forecast. In July 2026, the company generated revenue of approximately $21.5m (including a $0.6m unfavourable FX impact), with comparable ARPF growth exceeding 3%, above the company’s long-term CAGR.
Management described funeral volumes as resilient despite a benign winter flu season (the lowest recorded in five years) and a material contraction in industry death volumes, which was expected to be temporary given short-term fluctuations. Anticipated growth drivers include favourable AU/NZ demographics, a strong funding position and an acquisition pipeline in a fragmented industry.
An FY27 trading update is to be provided at the AGM in November 2026.
Management’s positioning
Propel’s presentation emphasised its scale as the #2 operator with approximately 10% market share, a defensive footprint of 213 locations (including 130 owned properties valued at a depreciated cost of ~$252m), founder-led management, and a strong balance sheet positioned to fund a disciplined acquisition pipeline alongside its ongoing capex programme.
For investors, the FY26 result reflects a defensive, essential-services business holding earnings broadly steady through volume and FX pressures, while maintaining balance sheet capacity to pursue further M&A in a highly fragmented market supported by long-term demographic tailwinds.
Don’t Miss the Next Consumer Sector Winner on ASX
Big News Blast delivers FREE breaking ASX news straight to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at Big News Blast to get the next market-moving announcement the moment it drops.