S&P/ASX 300 Index (ASX: XKO) stock Propel Funeral Partners Ltd (ASX: PFP) is taking a tumble today.
Propel Funeral shares closed yesterday trading for $3.54. In early-morning trade on Thursday, shares are changing hands at $3.06 apiece, down 13.6%.
For some context, the ASX 300 is down 0.9% at this same time amid investor concerns over renewed fighting in the Middle East.
This underperformance follows a trading update released before market open this morning.
Here's what's happening.
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ASX 300 stock tumbles on guidance update
Propel Funeral shares are getting walloped after the company, which counts as the second largest provider of death care services in Australia and New Zealand, reported on three new acquisitions as well as its full-year FY 2026 revenue and earnings guidance.
Turning to guidance first, the ASX 300 stock is forecasting FY 2026 revenue in the range of $225 million to $230 million. Should revenue come in at the low end of that range, that would represent a decline from the $225.8 million in revenue Propel Funeral Partners reported in FY 2025.
On the earnings front, the company expects FY 2026 operating earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range of $54.5 million to $56.5 million. As with revenue, should full-year earnings come in towards the lower end of that range, it will be well below the $56.2 million in operating EBITDA the company reported in FY 2025.
Management noted this guidance is based on a number of assumptions.
Those include the ASX 300 stock seeing a roughly 1% year-on-year increase in the number of funerals it performs, or roughly 22,850 for the full year.
The company also expects the average revenue per funeral it receives to increase by around 2% from last year.
As for those acquisitions…
Propel Funeral Partners expands in New Zealand
In news that could support the ASX 300 stock longer term, the company reported that it has inked binding agreements to acquire three funeral services providers as well as the related assets, including one cremation facility.
Propel Funerals said it will pay $9.1 million for the acquisitions, which are all located in regional markets in New Zealand.
The three businesses together were reported to generate $4 million in revenue. Operating from four locations, all of which Propel will acquire on settlement, they conduct more than 700 funerals a year.
Subject to meeting customary conditions, management expects the acquisitions to be completed in Q4 FY 2026 and/or Q1 FY 2027.
The new assets are expected to be earnings accretive in year one.
