Propel Funeral Partners (ASX:PFP) Announces FY25 Results
Financial Performance
Propel Funeral Partners reported revenue of $225.8 million for FY25, marking a 7.9% increase from FY24. Operating EBITDA rose by 1.4% to $56.2 million, and Operating NPAT increased by 2.2% to $21.6 million. The company achieved a strong cash flow conversion of 102.2%.
Operational Overview
The company expanded its network to 205 operating locations, including 41 cremation facilities and 9 cemeteries across Australia and New Zealand. Funeral volumes increased by 4.4%, supported by a 2.3% growth in average revenue per funeral.
Capital Management
Propel maintains an available funding capacity of $143 million and a net leverage ratio of 2.1x. The company reported a dividend of 14.4 cents per share, consistent with FY24.
Industry Trends and Acquisitions
Demand for funeral services is expected to grow due to favourable demographics in Australia and New Zealand. Propel continues to pursue acquisition opportunities in the highly fragmented funeral industry, with three acquisitions completed in FY25.
Summary and Outlook
Propel’s management highlighted a strong growth trajectory, a proven management team, and a stable operating margin. The company expects continued growth drivers in FY26, including favourable demographics, strong funding, and potential future acquisitions. Additionally, leadership changes were announced effective September 2025, with cofounders Fraser Henderson and Lilli Rayner taking over as Co-CEOs.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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