What did Propel Funeral Partners (ASX:PFP) announce regarding its international expansion?

Propel Funeral Partners (ASX:PFP) has entered into binding legal agreements to acquire three funeral service providers in New Zealand for a total consideration of up to $9.1 million. The deal includes Evans Funeral Services in Gisborne, Leishman Funeral Services in Balclutha, and Collingwood Funeral Home in Rotorua.

How are the acquisitions being funded by Propel Funeral Partners (ASX:PFP)?

The acquisition structure involves an upfront cash payment of $8.3 million upon completion, which will be entirely funded through Propel’s existing debt facilities. An additional $0.8 million in cash is structured as a potential earn-out, contingent on the acquired businesses meeting specific financial performance milestones over a four-year period.

What financial contribution will the new New Zealand businesses bring to Propel Funeral Partners (ASX:PFP)?

The three acquired businesses collectively generate approximately $4 million in annual revenue and perform over 700 funerals each year. Management expects the transactions to be earnings accretive in the first year following completion.

When are the New Zealand acquisitions expected to close for Propel Funeral Partners (ASX:PFP)?

The transactions are subject to customary closing conditions and are scheduled to finalise during either the fourth quarter of FY26 or the first quarter of FY27.

What is the full-year FY26 financial guidance for Propel Funeral Partners (ASX:PFP)?

Propel projects full-year FY26 revenue to land between $225 million and $230 million. Full-year operating EBITDA is forecasted to reach between $54.5 million and $56.5 million.

What volume and operational metrics are driving Propel Funeral Partners' (ASX:PFP) FY26 outlook?

The FY26 financial guidance is anchored by an anticipated 1% increase in funeral volumes to approximately 22,850 total services. Additionally, Propel is forecasting a steady 2% annual growth in its average revenue per funeral.

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Propel acquires NZ Providers, releases FY26 guidance

Written by Mahathir BayenaPublished Jun. 3 2026Last Updated Jun. 3 2026

Propel Funeral Partners (ASX:PFP) announced the acquisition of three New Zealand-based funeral service providers for a total consideration of up to $9.1 million.

The expansion targets three distinct regional markets in New Zealand, integrating Evans Funeral Services (including Gisborne Tairawhiti Cremation Services) in Gisborne, Leishman Funeral Services in Balclutha, and Collingwood Funeral Home in Rotorua into Propel’s growing network.

Operating across four locations, these businesses collectively generate approximately $4 million in annual revenue and conduct over 700 funerals each year.

The transaction structure comprises $8.3 million in cash payable upon completion—funded via the company’s existing debt facilities—alongside up to $0.8 million in cash linked to performance milestones over a four-year earn-out period.

Subject to customary conditions, the acquisitions are scheduled to finalise in Q4 FY26 or Q1 FY27, with earnings expected to be accretive in the first year.

Alongside this expansion, Propel released its financial guidance for FY26.

The company projects full-year revenue to land between $225 million and $230 million, whilst operating EBITDA is forecasted to reach between $54.5 million and $56.5 million.

The outlook is supported by an anticipated 1% volume increase to approximately 22,850 funerals and a steady 2% growth in average revenue per funeral.

Despite accounting for a 2.5% rise in operating costs and a 10% strengthening of the Australian dollar against the New Zealand dollar, Propel expects stable gross margins to anchor its financial performance moving forward.