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SERVICE CORPORATION INTERNATIONAL ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS AND CONFIRMS 2026 GUIDANCEApril 29, 2026 4:15 PM
PR Newswire (US)
Conference call on Thursday, April 30, 2026, at 8:00 a.m. Central Time.HOUSTON, April 29, 2026 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the first quarter of 2026.First Quarter Highlights:Revenue grew $22.3 million, or 2%, over the first quarter of 2025Comparable cemetery preneed sales production increased 10% in the current quarterComparable total funeral sales average grew 3% over the first quarter of 2025Comparable funeral preneed sales production increased 6% in the current quarterGAAP earnings per share was $0.97 compared to $0.98 in the first quarter of 2025Adjusted earnings per share was $0.97 compared to $0.96 in the first quarter of 2025Net cash provided by operating activities increased $22.7 million, or 7% to $333.8 million in the current quarter compared to $311.1 million in the prior year quarterAdjusted cash provided by operating activities increased $18.5 million, or 6%, to $334.5 million in the current quarter compared to $316.0 million in the prior yearTom Ryan, the Company's Chairman and CEO, commented on the first quarter performance:"Today, we reported adjusted earnings per share of $0.97 and net cash provided by operating activities of $333.8 million. Comparable funeral service volumes declined 6% year-over-year, reflecting the impact of a particularly strong prior year flu season and aligning with broader demographic trends. Despite this, the Company delivered solid underlying performance driven by a resilient average revenue per service and disciplined cost management, with expenses increasing approximately 1% year-over-year. In addition, preneed funeral sales production remained strong, increasing 6% for the period.In our cemetery segment, we delivered a strong performance, highlighted by 10% growth in comparable preneed cemetery sales production. This higher production drove 7% growth in comparable cemetery revenue and a 120 basis point improvement in cemetery gross profit.We remain focused on executing our long-term growth strategy—growing revenue, leveraging our scale, and allocating capital in a disciplined way to enhance shareholder value. While funeral volumes may continue to fluctuate in the near term, they have historically been stable over the longer-term. Overall, we are proud of how our teams executed in what was a challenging operating environment.I would like to thank our 25,000 associates for their unwavering commitment to serving client families with care and excellence that have made these results possible."Details of our first quarter 2026 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.(Dollars in millions, except for per share amounts)
Three months ended March 31,
2026
2025Revenue
$ 1,096.5
$ 1,074.2Operating income
$ 243.8
$ 251.7Net income attributable to common stockholders
$ 135.8
$ 142.9Diluted earnings per share
$ 0.97
$ 0.98Earnings excluding special items (1)
$ 135.3
$ 139.6Diluted earnings per share excluding special items (1)
$ 0.97
$ 0.96Diluted weighted average shares outstanding
139.9
145.3Net cash provided by operating activities
$ 333.8
$ 311.1Net cash provided by operating activities excluding special items (1)
$ 334.5
$ 316.0(1)Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release.Diluted earnings per share was $0.97 in the first quarter of 2026 compared to $0.98 in the first quarter of 2025. The current year quarter was impacted by $1.3 million of net gains on divestitures and impairment charges compared to $5.0 million in the prior year. Diluted earnings per share, excluding special items, was $0.97 in the first quarter of 2026 compared to $0.96 in the first quarter of 2025. Higher cemetery gross profit combined with a lower share count and a favorable tax rate slightly offset lower funeral gross profit resulting from a decline in funeral services performed during the quarter.Net cash provided by operating activities increased $22.7 million, or 7%, to $333.8 million. Adjusted cash provided by operating activities increased $18.5 million, or 6%, to $334.5 million in the current quarter compared to $316.0 million in the prior year due to favorable changes in working capital.OUTLOOK FOR 2026Our annual guidance ranges for 2026 detailed below have not changed and are consistent with our previously reported outlook for 2026. Our outlook for diluted earnings per share excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.(Dollars in millions, except per share amounts)
2026 OutlookDiluted earnings per share excluding special items (1)
$4.05 - $4.35
Net cash provided by operating activities excluding special items and cash taxes (1)
$1,125 - $1,185Cash taxes expected in 2026 (at the midpoint of diluted earnings per share excluding special
items guidance)
$120Net cash provided by operating activities excluding special items (1)
$1,005 - $1,065
Capital improvements at existing field locations
$135Development of cemetery property
$165Digital investments and corporate
$25Total maintenance, cemetery development, and other capital expenditures (Maintenance capital
expenditures)
$325(1)Diluted earnings per share excluding special items, net cash provided by operating activities excluding special items and cash taxes, and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2026 excludes the following because this information is not currently available for 2026: Expenses net of insurance recoveries related to hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP, consistent with the historical disclosures found in the Appendix at the end of this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures".CONFERENCE CALL AND WEBCASTWe will host a conference call on Thursday, April 30, 2026, at 8:00 a.m. Central Time. A question and answer session will follow prepared remarks made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 4888435. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through May 7, 2026 and can be accessed at (855) 669-9658 (US) or (412) 317-0088 (International) with the passcode of 1806799. Additionally, a replay of the conference call will be available on our website for approximately three months.ABOUT SERVICE CORPORATION INTERNATIONALService Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 combined preneed and atneed families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2026, we owned and operated 1,487 funeral service locations and 503 cemeteries (of which 314 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.For additional information contact: InvestorRelations@sci-us.com
Investors:
Trey Bocage - Assistant Vice President - Treasury and Investor Relations
(713) 525-3454
Andrea Low - Director - Federal Tax and Investor Relations
(713) 525-2811Media:
Jay Andrew - Assistant Vice President - Corporate Communications
(713) 525-3468CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTSThe statements in this press release that are not historical facts are forward-looking statements made in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe", "estimate", "project", "expect", or "anticipate", "predict" that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. These factors are discussed below. Except as required by applicable law, we assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.We may be adversely affected by the effects of inflation.Our results may be adversely affected by significant weather events, natural disasters, catastrophic events, or public health crises.Our credit agreements contain covenants that may prevent us from engaging in certain transactions.If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.The financial condition of third-party insurance companies that fund our preneed contracts may impact our future revenue.Unfavorable publicity could affect our reputation and business.Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition.We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.Any failure to protect personal information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.A failure of a key information technology system or process could disrupt and adversely affect our business.Our Canadian business exposes us to operational, economic, and currency risks.Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.The funeral and cemetery industry is competitive.If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.The continuing upward trend in life expectancy and an increase in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.Our funeral and cemetery businesses are high fixed-cost businesses.Risks associated with our supply chain, such as tariffs, could materially adversely affect our financial performance.Regulation and compliance could have a material adverse impact on our financial results.Unfavorable results of litigation could have a material adverse impact on our financial statements.Cemetery burial practice claims could have a material adverse impact on our financial results.The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com.SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE FIRST QUARTER OF 2026Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Revenue
$ 1,096,454
$ 1,074,167Cost of revenue
(810,003)
(782,750)Gross profit
286,451
291,417Corporate general and administrative expenses
(43,911)
(44,701)Gains on divestitures and impairment charges, net
1,274
4,971Operating income
243,814
251,687Interest expense
(64,006)
(61,483)Other income, net
1,398
3,152Income before income taxes
181,206
193,356Provision for income taxes
(45,333)
(50,429)Net income
135,873
142,927Net income attributable to noncontrolling interests
(65)
(47)Net income attributable to common stockholders
$ 135,808
$ 142,880Basic earnings per share:
Net income attributable to common stockholders
$ 0.98
$ 0.99Basic weighted average number of shares
139,025
144,116Diluted earnings per share:
Net income attributable to common stockholders
$ 0.97
$ 0.98Diluted weighted average number of shares
139,928
145,292 Consolidated Balance Sheet (Unaudited)
(Dollars in thousands, except share amounts)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents$ 257,959
$ 243,581Receivables, net of reserves of $3,725 and $3,944, respectively100,255
100,415Inventories38,414
35,246Income tax receivable22,202
4,999Other28,912
27,552Total current assets447,742
411,793Preneed receivables, net of reserves of $34,639 and $34,680, respectively, and
trust investments7,264,446
7,360,793Cemetery property2,226,549
2,201,967Property and equipment, net2,790,176
2,751,761Goodwill2,173,354
2,169,055Deferred charges and other assets, net of reserves of $2,636 and $2,460,
respectively1,307,041
1,360,530Cemetery perpetual care trust investments2,365,441
2,398,613Total assets$ 18,574,749
$ 18,654,512
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and accrued liabilities$ 728,493
$ 685,156Current maturities of long-term debt57,300
56,847Income taxes payable4,805
3,701Total current liabilities790,598
745,704Long-term debt5,105,516
5,082,970Deferred revenue, net1,799,576
1,779,266Deferred tax liability698,346
691,033Other liabilities543,820
550,793Deferred receipts held in trust5,709,204
5,784,398Care trusts' corpus2,342,740
2,381,507Commitments and contingencies
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized,
142,215,508 and 141,957,004 shares issued, respectively, and 138,147,494 and
139,678,199 shares outstanding, respectively138,147
139,678Capital in excess of par value981,975
987,210Retained earnings458,980
498,958Accumulated other comprehensive income5,309
12,425Total common stockholders' equity1,584,411
1,638,271Noncontrolling interests538
570Total equity1,584,949
1,638,841Total liabilities and equity$ 18,574,749
$ 18,654,512 Consolidated Statement of Cash Flows (Unaudited)
(Dollars in thousands)Three months ended March 31,
2026
2025
Cash flows from operating activities:
Net income$ 135,873
$ 142,927Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization56,686
54,126Amortization of intangibles3,656
4,200Amortization of cemetery property22,602
22,296Amortization of loan costs2,226
2,181Provision for expected credit losses1,943
2,311Provision for deferred income taxes7,249
2,669Gains on divestitures and impairment charges, net(1,274)
(4,971)Share-based compensation4,163
3,841Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease (increase) in receivables401
(104)Decrease (increase) in other assets27,713
(2,365)Increase in payables and other liabilities33,736
48,296Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments8,158
5,076Increase in deferred revenue, net11,122
16,051Increase in deferred receipts held in trust19,539
14,613Net cash provided by operating activities333,793
311,147Cash flows from investing activities:
Capital expenditures(79,889)
(78,185)Business acquisitions, net of cash acquired(24,085)
(14,869)Real estate acquisitions(3,839)
(2,011)Corporate headquarters(28,156)
(8,916)Proceeds from divestitures and sales of property and equipment3,727
9,537Payments for Company-owned life insurance policies(96)
(57)Proceeds from Company-owned life insurance policies and other—
3,757Net cash used in investing activities(132,338)
(90,744)Cash flows from financing activities:
Proceeds from issuance of long-term debt140,000
185,000Scheduled payments of debt(6,830)
(6,541)Early payments of debt(140,000)
(195,000)Proceeds from corporate headquarters debt facility26,082
2,522Principal payments on finance leases(9,784)
(9,332)Proceeds from exercise of stock options6,029
3,907Purchase of Company common stock(143,153)
(130,450)Payments of dividends(47,080)
(45,991)Bank overdrafts and other(10,173)
(9,809)Net cash used in financing activities(184,909)
(205,694)Effect of foreign currency(2,045)
128Net increase in cash, cash equivalents, and restricted cash14,501
14,837Cash, cash equivalents, and restricted cash at beginning of period246,468
221,399Cash, cash equivalents, and restricted cash at end of period$ 260,969
$ 236,236 Consolidated Segment Results
(See definitions of revenue line items later in this appendix.)
(Dollars in millions, except funeral services performed and average revenue per
service)Three months ended March 31,
2026
2025Consolidated funeral:
Atneed revenue$ 320.2
$ 329.1Matured preneed revenue205.4
205.8Core revenue525.6
534.9Non-funeral home revenue28.9
27.6Non-funeral home preneed sales revenue22.1
22.2Core general agency and other revenue54.0
54.8Total revenue$ 630.6
$ 639.5
Gross profit$ 134.0
$ 154.0Gross profit percentage21.2 %
24.1 %
Funeral services performed93,686
97,854Average revenue per service$ 5,919
$ 5,748
(Dollars in millions)Three months ended March 31,
2026
2025Consolidated cemetery:
Atneed property revenue$ 36.5
$ 37.2Atneed merchandise and service revenue72.7
75.1Total atneed revenue109.2
112.3Recognized preneed property revenue209.6
188.7Recognized preneed merchandise and service revenue106.3
98.5Total recognized preneed revenue315.9
287.2Core revenue425.1
399.5Other cemetery revenue40.8
35.2Total revenue$ 465.9
$ 434.7
Gross profit$ 152.5
$ 137.4Gross profit percentage32.7 %
31.6 %Comparable Funeral ResultsThe table below details comparable funeral results of operations ("same store") for the three months ended March 31, 2026 and 2025. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2025 and ending March 31, 2026.(Dollars in millions, except average revenue per service and average
revenue per contract sold)Three months ended March 31,
2026
2025
Var
%Comparable funeral revenue:
Atneed revenue (1)$ 312.9
$ 328.3
$ (15.4)
(4.7) %Matured preneed revenue (2) 203.2
205.6
(2.4)
(1.2) %Core revenue (3)516.1
533.9
(17.8)
(3.3) %Non-funeral home revenue (4)28.7
27.0
1.7
6.3 %Non-funeral home preneed sales revenue (5)22.0
22.1
(0.1)
(0.5) %Core general agency and other revenue (6)53.4
54.6
(1.2)
(2.2) %Total comparable revenue$ 620.2
$ 637.6
$ (17.4)
(2.7) %
Comparable gross profit$ 132.6
$ 155.4
$ (22.8)
(14.7) %Comparable gross profit percentage21.4 %
24.4 %
(3.0) %
Comparable funeral services performed:
Atneed47,978
52,187
(4,209)
(8.1) %Matured preneed28,509
29,724
(1,215)
(4.1) %Total core76,487
81,911
(5,424)
(6.6) %Non-funeral home15,116
15,564
(448)
(2.9) %Total comparable funeral services performed91,603
97,475
(5,872)
(6.0) %Core cremation rate57.8 %
57.4 %
0.4 %
Total comparable cremation rate (7)64.5 %
64.1 %
0.4 %
Comparable funeral average revenue per service:
Atneed $ 6,522
$ 6,291
$ 231
3.7 %Matured preneed 7,128
6,917
211
3.1 %Total core6,748
6,518
230
3.5 %Non-funeral home 1,899
1,735
164
9.5 %Total comparable average revenue per service$ 5,947
$ 5,754
$ 193
3.4 %
Comparable funeral preneed sales production:
Total preneed sales$ 306.0
$ 287.8
$ 18.2
6.3 %Core contracts sold36,247
35,223
1,024
2.9 %Non-funeral home contracts sold19,858
19,153
705
3.7 %Core average revenue per contract sold6,706
6,527
179
2.7 %Non-funeral home average revenue per contract sold$ 3,169
$ 3,024
$ 145
4.8 %(1)Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred.(2)Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits.(3)Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes.(4)Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred.(5)Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel.(6)Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net.(7)Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct).Total comparable funeral revenue decreased $17.4 million. Core funeral revenue decreased $17.8 million, or 3.3%, due to a 6.6% decrease in core funeral services performed reflecting the impact of a strong prior year flu season, which aligns with broader industry and demographic trends. This decrease was partially offset by a 3.5% increase in core average revenue per service. The core cremation rate increased slightly by 40 basis points to 57.8%.Non-funeral home revenue increased $1.7 million due to a 9.5% increase in non-funeral home average revenue per service driven by matured preneed revenue from the backlog, partially offset by a 2.9% decrease in non-funeral home services performed.Core general agency and other revenue decreased $1.2 million. Core general agency revenue benefitted from higher insurance sales production which was more than offset by a lower general agency commission rate quarter over quarter. The current commission rate has now stabilized and is trending in line with expectations.Comparable funeral gross profit decreased $22.8 million to $132.6 million, and the gross profit percentage declined 300 basis points from 24.4% to 21.4%. This is primarily attributable to the $17.4 million decline in funeral revenue applied to our high fixed cost operating structure. This decline was slightly offset by our focus on disciplined controllable cost management, limiting fixed cost growth to approximately 1% versus the prior year quarter.Comparable funeral preneed sales production increased $18.2 million, or 6.3%, in the first quarter of 2026 compared to 2025. Core preneed sales production increased $13.2 million, or 5.7%. Non-funeral home preneed sales production increased $5.0 million, or 8.6%. We experienced favorable contribution from contract velocity and average revenue per contract in core and non-funeral home sales channels.Comparable Cemetery ResultsThe table below details comparable cemetery results of operations ("same store") for the three months ended March 31, 2026 and 2025. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2025 and ending March 31, 2026.(Dollars in millions)Three months ended March 31,
2026
2025
Var
%Comparable cemetery revenue:
Atneed property revenue$ 36.4
$ 37.2
$ (0.8)
(2.2) %Atneed merchandise and service revenue72.6
75.1
(2.5)
(3.3) %Total atneed revenue (1)109.0
112.3
(3.3)
(2.9) %Recognized preneed property revenue209.4
188.7
20.7
11.0 %Recognized preneed merchandise and service revenue106.3
98.5
7.8
7.9 %Total recognized preneed revenue (2)315.7
287.2
28.5
9.9 % Core revenue (3)424.7
399.5
25.2
6.3 %Other revenue (4)40.8
35.2
5.6
15.9 %Total comparable revenue$ 465.5
$ 434.7
$ 30.8
7.1 %
Comparable gross profit$ 152.5
$ 137.5
$ 15.0
10.9 %Comparable gross profit percentage32.8 %
31.6 %
1.2 %
Comparable cemetery preneed and atneed sales production:
Property$ 254.6
$ 234.9
$ 19.7
8.4 %Merchandise and services215.1
206.0
9.1
4.4 %Discounts and other(3.2)
(3.1)
(0.1)
(3.2) %Preneed and atneed sales production$ 466.5
$ 437.8
$ 28.7
6.6 %
Preneed sales production$ 356.2
$ 324.6
$ 31.6
9.7 % Recognition rate (5)91.0 %
91.3 %
(1)Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred.(2)Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income.(3)Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income.(4)Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts.(5)Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production.Total comparable cemetery revenue increased $30.8 million, or 7.1%, in the first quarter of 2026 compared to the first quarter of 2025. The increase was due to higher core revenue of $25.2 million and higher other revenue of $5.6 million.The core revenue increase of $25.2 million was primarily due to a $28.5 million, or 9.9%, increase in total recognized preneed revenue, of which $20.7 million resulted from higher property revenue and $7.8 million from higher merchandise and service revenue. Total recognized preneed revenue benefited from growth in comparable cemetery preneed sales production of $31.6 million, or 9.7%.Other revenue was $5.6 million higher, or 15.9%, compared to the prior year quarter primarily from an increase in endowment care trust fund income related to higher total return distributions.Comparable cemetery gross profit increased $15.0 million to $152.5 million. The gross profit percentage increased from 31.6% to 32.8%, primarily due to the growth in core and other revenue mentioned above.Other Financial ResultsCorporate general and administrative expenses were $43.9 million in the first quarter of 2026, slightly improved over the first quarter of 2025.Interest expense was $64.0 million in the first quarter of 2026 compared to $61.5 million in the prior year. The average balances on our floating rate debt increased approximately $250.0 million, partially offset by lower average floating rates decreasing from 6.8% to 5.8% resulting in a net $2.5 million increase in interest expense.The GAAP effective income tax rate for the first quarter of 2026 was 25.0%, down from 26.1% in the prior year quarter. On an adjusted basis, the effective tax rate was 24.8%, down from 25.9% in the prior year quarter. The lower effective tax rate in the current period was primarily due to tax benefits from an investment in a renewable energy project recognized in the quarter.Cash Flow and Capital Spending (Dollars in millions)
Three months ended March 31,
2026
2025Net cash provided by operating activities
$ 333.8
$ 311.1Legal settlement payments
0.1
0.3Restructuring charge payments
0.6
4.6Net cash provided by operating activities excluding special items
$ 334.5
$ 316.0Cash taxes included in net cash provided by operating activities excluding special
items
$ 4.4
$ 4.9Net cash provided by operating activities excluding special items grew $18.5 million to $334.5 million in the first quarter of 2026 compared to $316.0 million in the first quarter of 2025. The increase is primarily driven by payroll-related working capital, due to an additional payroll tax payment made in the prior year.A summary of our capital expenditures is set forth below:(Dollars in millions)
Three months ended March 31,
2026
2025Capital improvements at existing field locations
$ 20.0
$ 20.7Development of cemetery property
40.9
41.4Digital investments and corporate
5.6
4.8Total maintenance, cemetery development, and other capital expenditures
(Maintenance capital expenditures)
$ 66.5
$ 66.9Growth capital expenditures/construction of new funeral service locations
13.4
11.3Total capital expenditures
$ 79.9
$ 78.2Total capital expenditures increased $1.7 million in the current quarter, primarily due to growth capital expenditures for construction of new funeral homes during the quarter.Trust Fund Returns Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of March 31, 2026 is set forth below:
Three MonthsPreneed funeral
(0.8) %Preneed cemetery
(0.7) %Cemetery perpetual care
(0.6) %Combined trust funds
(0.7) %Non-GAAP Financial MeasuresEarnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations by adjusting for the items listed below. We also believe these measures help facilitate comparisons to our competitors' operating results.Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. See "Cash Flow and Capital Spending" in this press release for a reconciliation of net cash provided by operating activities to net cash provided by operating activities excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.(Dollars in millions, except diluted EPS)Three months ended March 31,
2026
2025
NetIncome
DilutedEPS
NetIncome
DilutedEPSNet income attributable to common stockholders, as reported$ 135.8
$ 0.97
$ 142.9
$ 0.98Pre-tax reconciling items:
Gains on divestitures and impairment charges, net(1.3)
(0.01)
(5.0)
(0.03)Tax reconciling items:
Tax effect from significant items0.5
0.01
1.3
0.01Change in non-recurring tax items0.3
—
0.4
—Earnings excluding special items and diluted earnings per share
excluding special items$ 135.3
$ 0.97
$ 139.6
$ 0.96
Diluted weighted average shares outstanding
139.9
145.3
View original content:https://www.prnewswire.com/news-releases/service-corporation-international-announces-first-quarter-2026-financial-results-and-confirms-2026-guidance-302757856.htmlSOURCE Service Corporation International
Original: SERVICE CORPORATION INTERNATIONAL ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS AND CONFIRMS 2026 GUIDANCE
US Market News
4月前
SERVICE CORPORATION INTERNATIONAL ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND PROVIDES 2026 GUIDANCEFebruary 11, 2026 4:15 PM
PR Newswire (US)
Conference call on Thursday, February 12, 2026, at 8:00 a.m. Central Time. HOUSTON, Feb. 11, 2026 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the fourth quarter of 2025.Highlights:Revenue increased $19 million, or 2%, over the fourth quarter of 2024 with growth in both the funeral and cemetery segments, resulting in a full year revenue increase of $123 million, or 3%, over the prior yearGross profit increased $6 million, or 2%, over the fourth quarter of 2024, with full year gross profit increasing $49 million, or 5%, over the prior yearComparable preneed funeral sales production grew 11% over the fourth quarter of 2024Comparable total funeral sales average grew 3% over the fourth quarter of 2024Comparable preneed cemetery sales production grew 2% over the fourth quarter of 2024, with a full year increase of $48 million, or 4%, over the prior yearGAAP diluted earnings per share of $1.13 grew 9% over the fourth quarter of 2024 and GAAP diluted earnings per share of $3.80 grew 8% for the full year over prior yearAdjusted earnings per share of $1.14 grew 8% over the fourth quarter of 2024 and adjusted earnings per share of $3.85 grew 9% for the full year over prior yearGAAP operating cash flow was $943 million for the full year of 2025 compared to $945 million for the full year of 2024Adjusted operating cash flow was $966 million for the full year of 2025 compared to $967 million for the full year of 2024Excluding cash taxes and special items in both years, year to date net cash provided by operating activities increased $108 million, or 11%, to $1,106 million compared to $998 million in the prior yearTom Ryan, the Company's Chairman and Chief Executive Officer, commented on fourth quarter results:"We delivered a strong finish to the year, highlighted by fourth quarter 2025 adjusted earnings per share growth of 8%. Solid top-line performance across both operating segments drove gross profit expansion. During the quarter, we delivered combined preneed funeral and cemetery sales production growth of 6% and saw continued improvement in the average funeral revenue per service.For the full year, adjusted earnings per share increased 9% to $3.85, and we generated $966 million in adjusted operating cash flow. This robust cash generation enabled disciplined capital deployment toward strategic acquisitions, development of cemetery property, real estate purchases, and construction of new funeral homes, while returning $645 million to shareholders through dividends and share repurchases. Our acquisition spend included $101 million for 22 funeral homes and 2 cemeteries in major metropolitan markets, and we invested approximately $79 million toward real estate, new construction, and facility expansions.Looking ahead to 2026, we believe we are well positioned to deliver continued earnings momentum, with the midpoint of our expected adjusted earnings per share growth within our long-term target range of 8% to 12%. I would like to thank our more than 25,000 associates for their unwavering commitment to serving client families. Their dedication supports our financial strength and provides the flexibility to execute our long-term growth strategy of driving revenue, leveraging our unmatched scale, and allocating capital to enhance shareholder value."FOURTH QUARTER AND FULL YEAR SUMMARYDetails of our fourth quarter 2025 financial results and the consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.(Dollars in millions, except for per share amounts)Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024Revenue$ 1,111.5
$ 1,093.0
$ 4,309.2
$ 4,186.4Operating income$ 275.6
$ 262.2
$ 978.1
$ 927.7Net income attributable to common stockholders$ 159.4
$ 151.4
$ 542.6
$ 518.6Diluted earnings per share$ 1.13
$ 1.04
$ 3.80
$ 3.53Earnings excluding special items (1)$ 161.1
$ 154.8
$ 548.8
$ 517.9Diluted earnings per share excluding special items (1)$ 1.14
$ 1.06
$ 3.85
$ 3.53Diluted weighted average shares outstanding141.1
146.2
142.7
146.8Net cash provided by operating activities$ 212.9
$ 264.1
$ 942.8
$ 944.9Net cash provided by operating activities excluding special items (1)$ 213.2
$ 267.6
$ 965.5
$ 976.7(1)Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release.Diluted earnings per share was $1.13 in the fourth quarter of 2025 compared to $1.04 in the fourth quarter of 2024. The prior year was impacted by $17.2 million of net losses on divestitures and impairment charges and $11.5 million of restructuring charges. These charges were offset by a $20.3 million reduction in our California legal reserve in the prior year which was included in corporate general and administrative expenses. Diluted earnings per share excluding special items, was $1.14 in the fourth quarter of 2025 compared to $1.06 in the fourth quarter of 2024. Higher operating profit and lower share count resulted in 8% growth over the prior year fourth quarter.Net cash provided by operating activities decreased $51.2 million to $212.9 million in the fourth quarter of 2025 compared to $264.1 million in the fourth quarter of 2024. Excluding special items, net cash provided by operating activities decreased $54.4 million primarily due to expected higher cash interest of $24.2 million and higher cash taxes of $20.7 million.OUTLOOK FOR 2026Our 2026 outlook for diluted earnings per share excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.(Dollars in millions, except per share amounts)2026 OutlookDiluted earnings per share excluding special items (1)$4.05 - $4.35
Net cash provided by operating activities excluding special items and cash taxes (1)$1,125 - $1,185Cash taxes expected in 2026 (at the midpoint of diluted earnings per share excluding special items guidance)$120Net cash provided by operating activities excluding special items (1)$1,005 - $1,065
Capital improvements at existing field locations$135Development of cemetery property$165Digital investments and corporate$25Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) $325(1)Diluted earnings per share excluding special items, net cash provided by operating activities excluding special items and cash taxes, and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2026 excludes the following because this information is not currently available for 2026: Expenses net of insurance recoveries related to hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP, consistent with the historical disclosures found in the Appendix at the end of this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures".CONFERENCE CALL AND WEBCASTWe will host a conference call on Thursday, February 12, 2026, at 8:00 a.m. Central Time. A question and answer session will follow prepared remarks made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 4533133. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through February 19, 2026 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 9599804. Additionally, a replay of the conference call will be available on our website for approximately one year.ABOUT SERVICE CORPORATION INTERNATIONALService Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At December 31, 2025, we owned and operated 1,485 funeral service locations and 500 cemeteries (of which 312 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.For additional information contact: InvestorRelations@sci-us.com
Investors:
Trey Bocage - Assistant Vice President Treasury and Investor Relations(713) 525-3454
Andrea Low - Director Federal Tax and Investor Relations(713) 525-2811Media:
Jay Andrew - Assistant Vice President Corporate Communications(713) 525-3468CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "plan," "project," "expect," "anticipate," "predict," or other similar words that convey the uncertainty of future events or outcomes. The absence of these words, however, does not mean that the statements are not forward-looking. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.We may be adversely affected by the effects of inflation.Our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises.Our credit agreements contain covenants that may prevent us from engaging in certain transactions.If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.The financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue.Unfavorable publicity could affect our reputation and business.Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition.We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.Any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.Our Canadian business exposes us to operational, economic, and currency risks.Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.A failure of a key information technology system or process could disrupt and adversely affect our business.The funeral and cemetery industry is competitive.If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.The continuing upward trend in life expectancy and the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.Our funeral and cemetery businesses are high fixed-cost businesses.Risks associated with our supply chain could materially adversely affect our financial performance.Regulation and compliance could have a material adverse impact on our financial results.Unfavorable results of litigation could have a material adverse impact on our financial statements.Cemetery burial practice claims could have a material adverse impact on our financial results.The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise, except as required by law.SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE FOURTH QUARTER OF 2025Consolidated Statement of Operations (Dollars in thousands, except per share amounts)Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Revenue$ 1,111,527
$ 1,093,023
$ 4,309,234
$ 4,186,379Cost of revenue(799,851)
(787,133)
(3,169,160)
(3,095,722)Gross profit311,676
305,890
1,140,074
1,090,657Corporate general and administrative expenses (1)(33,659)
(14,964)
(166,158)
(139,019)Restructuring charge—
(11,470)
(1,980)
(11,470)(Losses) gains on divestitures and impairment charges, net(2,467)
(17,243)
6,151
(12,488)Operating income275,550
262,213
978,087
927,680Interest expense(64,135)
(63,231)
(255,372)
(257,771)Losses on early extinguishment of debt, net(523)
—
(523)
(25)Other income (expense), net372
(1,468)
7,591
5,534Income before income taxes211,264
197,514
729,783
675,418Provision for income taxes(51,792)
(46,116)
(186,938)
(156,665)Net income159,472
151,398
542,845
518,753Net income attributable to noncontrolling interests(76)
(44)
(231)
(105)Net income attributable to common stockholders$ 159,396
$ 151,354
$ 542,614
$ 518,648Basic earnings per share:
Net income attributable to common stockholders$ 1.14
$ 1.05
$ 3.83
$ 3.57Basic weighted average number of shares140,140
144,825
141,603
145,271Diluted earnings per share:
Net income attributable to common stockholders$ 1.13
$ 1.04
$ 3.80
$ 3.53Diluted weighted average number of shares141,103
146,189
142,689
146,782(1) Corporate general and administrative expenses in the fourth quarter of 2024, includes a reduction of our California legal reserve of $20.3 million as the primary claims period expired. Consolidated Balance Sheet
(Dollars in thousands, except share amounts)
December 31,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents$ 243,581
$ 218,766Receivables, net of reserves of $3,944 and $4,040, respectively100,415
94,341Inventories35,246
33,318Other32,551
30,905Total current assets411,793
377,330Preneed receivables, net of reserves of $34,680 and $35,857, respectively, and trust investments7,360,793
6,739,332Cemetery property2,201,967
2,129,404Property and equipment, net2,751,761
2,581,069Goodwill2,169,055
2,081,015Deferred charges and other assets, net of reserves of $2,460 and $2,367, respectively1,360,530
1,317,256Cemetery perpetual care trust investments2,398,613
2,154,032Total assets$ 18,654,512
$ 17,379,438
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and accrued liabilities$ 685,156
$ 639,274Current maturities of long-term debt56,847
83,850Income taxes payable3,701
715Total current liabilities745,704
723,839Long-term debt5,082,970
4,751,448Deferred revenue, net1,779,266
1,755,170Deferred tax liability691,033
649,195Other liabilities550,793
513,480Deferred receipts held in trust5,784,398
5,162,525Care trusts' corpus2,381,507
2,145,112Commitments and contingencies
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized, 141,957,004 and
146,668,589 shares issued, respectively, and 139,678,199 and 144,694,887 shares outstanding,
respectively139,678
144,695Capital in excess of par value987,210
986,830Retained earnings498,958
553,701Accumulated other comprehensive income (loss)12,425
(7,221)Total common stockholders' equity1,638,271
1,678,005Noncontrolling interests570
664Total equity1,638,841
1,678,669Total liabilities and equity$ 18,654,512
$ 17,379,438 Consolidated Statement of Cash Flows (Dollars in thousands)Twelve Months Ended December 31,
2025
2024
Cash flows from operating activities:
Net income$ 542,845
$ 518,753Adjustments to reconcile net income to net cash provided by operating activities:
Losses on early extinguishment of debt, net523
25Depreciation and amortization219,654
208,211Amortization of intangibles16,370
17,222Amortization of cemetery property104,262
102,510Amortization of loan costs8,823
7,527Provision for expected credit losses8,894
11,542Provision for deferred income taxes41,017
7,541(Gain) loss on divestitures and impairment charges, net(6,151)
12,488Share-based compensation17,633
18,783Change in assets and liabilities, net of effects from acquisitions and divestitures:
Increase in receivables(9,723)
(1,481)(Increase) decrease in other assets(31,727)
65,043Increase in payables and other liabilities12,434
21,100Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments(49,351)
(134,986)Increase in deferred revenue, net30,220
59,189Increase in deferred receipts held in trust37,075
31,445Net cash provided by operating activities942,798
944,912Cash flows from investing activities:
Capital expenditures(388,553)
(373,659)Business acquisitions, net of cash acquired(101,291)
(181,210)Real estate acquisitions(18,504)
(62,061)Proceeds from divestitures and sales of property and equipment30,405
24,403Corporate headquarters(69,898)
(15,448)Payments for Company-owned life insurance policies (229)
(3,024)Proceeds from Company-owned life insurance policies and other 11,433
3,914Other investment activity(11,647)
(13,864)Net cash used in investing activities(548,284)
(620,949)Cash flows from financing activities:
Proceeds from issuance of long-term debt1,060,890
1,451,137Debt issuance costs(5,424)
(15,390)Scheduled payments of debt(21,233)
(24,447)Early payments of debt(804,600)
(1,315,524)Principal payments on finance leases(38,321)
(36,840)Proceeds from exercise of stock options29,401
56,683Proceeds from corporate headquarters debt facility54,766
—Purchase of Company common stock(461,015)
(253,733)Payments of dividends(183,571)
(174,282)Bank overdrafts and other(5,619)
(7,245)Net cash used in financing activities(374,726)
(319,641)Effect of foreign currency5,281
(7,684)Net increase (decrease) in cash, cash equivalents, and restricted cash25,069
(3,362)Cash, cash equivalents, and restricted cash at beginning of period221,399
224,761Cash, cash equivalents, and restricted cash at end of period$ 246,468
$ 221,399 Consolidated Segment Results (See definitions of revenue line items later in this appendix.) (Dollars in millions, except funeral services performed and
average revenue per service)Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024Consolidated funeral:
Atneed revenue$ 299.4
$ 298.0
$ 1,209.6
$ 1,185.8Matured preneed revenue196.5
183.3
769.1
725.8Core revenue495.9
481.3
1,978.7
1,911.6Non-funeral home revenue28.1
25.0
107.6
94.8Non-funeral home preneed sales revenue22.0
19.6
93.2
104.8Core general agency and other revenue54.6
61.8
226.0
213.0Total revenue$ 600.6
$ 587.7
$ 2,405.5
$ 2,324.2
Gross profit$ 126.2
$ 125.1
$ 495.8
$ 465.3Gross profit percentage21.0 %
21.3 %
20.6 %
20.0 %
Funeral services performed89,117
88,934
358,621
355,074Average revenue per service$ 5,880
$ 5,693
$ 5,818
$ 5,651 (Dollars in millions)Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024Consolidated cemetery:
Atneed property revenue$ 35.2
$ 35.7
$ 145.3
$ 140.7Atneed merchandise and service revenue69.6
71.9
290.3
291.3Total atneed revenue104.8
107.6
435.6
432.0Recognized preneed property revenue258.5
264.4
896.2
892.7Recognized preneed merchandise and service revenue107.4
101.1
421.7
403.0Total recognized preneed revenue365.9
365.5
1,317.9
1,295.7Core revenue470.7
473.1
1,753.5
1,727.7Other cemetery revenue40.2
32.2
150.2
134.5Total revenue$ 510.9
$ 505.3
$ 1,903.7
$ 1,862.2
Gross profit$ 185.5
$ 180.8
$ 644.3
$ 625.4Gross profit percentage36.3 %
35.8 %
33.8 %
33.6 %Comparable Funeral ResultsThe table below details comparable funeral results of operations ("same store") for the three months ended December 31, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending December 31, 2025.(Dollars in millions, except average revenue per service and average
revenue per contract sold)Three Months Ended December 31,
2025
2024
Var
%Comparable funeral revenue:
Atneed revenue (1)$ 286.9
$ 290.5
$ (3.6)
(1.2) %Matured preneed revenue (2) 190.4
181.1
9.3
5.1 %Core revenue (3)477.3
471.6
5.7
1.2 %Non-funeral home revenue (4)27.7
24.7
3.0
12.1 %Non-funeral home preneed sales revenue (5)21.7
19.5
2.2
11.3 %Core general agency and other revenue (6)53.7
61.6
(7.9)
(12.8) %Total comparable revenue$ 580.4
$ 577.4
$ 3.0
0.5 %
Comparable gross profit$ 123.0
$ 126.6
$ (3.6)
(2.8) %Comparable gross profit percentage21.2 %
21.9 %
(0.7) %
Comparable funeral services performed:
Atneed44,093
45,913
(1,820)
(4.0) %Matured preneed26,786
26,367
419
1.6 %Total core70,879
72,280
(1,401)
(1.9) %Non-funeral home14,952
14,842
110
0.7 %Total comparable funeral services performed85,831
87,122
(1,291)
(1.5) %Core cremation rate57.8 %
57.5 %
0.3 %
Total comparable cremation rate (7)64.9 %
64.6 %
0.3 %
Comparable funeral average revenue per service:
Atneed $ 6,507
$ 6,327
$ 180
2.8 %Matured preneed 7,108
6,868
240
3.5 %Total core6,734
6,525
209
3.2 %Non-funeral home 1,853
1,664
189
11.4 %Total comparable average revenue per service$ 5,884
$ 5,697
$ 187
3.3 %
Comparable funeral preneed sales production:
Total preneed sales$ 294.1
$ 264.9
$ 29.2
11.0 %Core contracts sold34,892
31,601
3,291
10.4 %Non-funeral home contracts sold18,569
17,647
922
5.2 %Core average revenue per contract sold6,783
6,698
85
1.3 %Non-funeral home average revenue per contract sold$ 3,094
$ 3,017
$ 77
2.6 %(1)Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred.(2)Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits.(3)Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes.(4)Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred.(5)Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel.(6)Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net.(7)Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct). Total comparable funeral revenue increased $3.0 million, or 0.5%, primarily driven by a $5.7 million increase in core funeral revenue, a $3.0 million increase in non-funeral home revenue and a $2.2 million increase in non-funeral home preneed sales revenue, partially offset by a $7.9 million decrease in core general agency and other revenue.The increase in core funeral revenue of $5.7 million, or 1.2%, was primarily due to a 3.2% growth in the core average revenue per service partially offset by a 1.9% decrease in core funeral services performed. This core average growth was achieved despite a modest increase of 30 basis points in the core cremation rate to 57.8%.Non-funeral home revenue increased $3.0 million due to an 11.4% increase in non-funeral home average revenue per service and a 0.7% increase in non-funeral home services performed.Non-funeral home preneed sales revenue increased $2.2 million, or 11.3%, primarily due to growth in non-funeral home preneed sales production of $4.2 million, or 7.9%. This growth led to higher non-funeral home general agency revenue as we shifted more production from trust to insurance-funded contracts.Core general agency and other revenue declined $7.9 million or 12.8%. Core general agency revenue benefitted from higher sales production but was more than offset by a lower general agency commission rate quarter over quarter. The current commission rate has now stabilized and is trending in line with expectations.Comparable funeral gross profit decreased $3.6 million to $123.0 million, and the gross profit percentage decreased 70 basis points to 21.2% from 21.9%. Increases in revenue were more than offset by higher selling compensation costs of $5.4 million. These higher costs resulted primarily from an 11.0% increase in comparable preneed funeral sales production coupled with an operational shift from variable to fixed compensation for core preneed funeral sales counselors. Fixed selling compensation is expensed as incurred.Comparable preneed funeral sales production increased $29.2 million, or 11.0%, in the fourth quarter of 2025 compared to 2024. Core preneed sales production increased $25.0 million, or 11.8%. Non-funeral home preneed sales production increased $4.2 million, or 7.9%. We experienced an increase in insurance production, as both our core and non-funeral home sales forces have fully transitioned to our new insurance provider.Comparable Cemetery ResultsThe table below details comparable cemetery results of operations ("same store") for the three months ended December 31, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending December 31, 2025.(Dollars in millions)Three Months Ended December 31,
2025
2024
Var
%Comparable cemetery revenue:
Atneed property revenue$ 35.0
$ 35.3
$ (0.3)
(0.8) %Atneed merchandise and service revenue69.0
71.6
(2.6)
(3.6) %Total atneed revenue (1)104.0
106.9
(2.9)
(2.7) %Recognized preneed property revenue257.5
263.6
(6.1)
(2.3) %Recognized preneed merchandise and service revenue106.7
101.0
5.7
5.6 %Total recognized preneed revenue (2)364.2
364.6
(0.4)
(0.1) % Core revenue (3)468.2
471.5
(3.3)
(0.7) %Other revenue (4)40.1
32.1
8.0
24.9 %Total comparable revenue$ 508.3
$ 503.6
$ 4.7
0.9 %
Comparable gross profit$ 185.2
$ 179.9
$ 5.3
2.9 %Comparable gross profit percentage36.4 %
35.7 %
0.7 %
Comparable cemetery preneed and atneed sales production:
Property$ 265.1
$ 272.5
$ (7.4)
(2.7) %Merchandise and services209.6
196.3
13.3
6.8 %Discounts and other(3.6)
(3.1)
(0.5)
(16.1) %Preneed and atneed sales production$ 471.1
$ 465.7
$ 5.4
1.2 %
Preneed sales production$ 368.5
$ 360.5
$ 8.0
2.2 % Recognition rate (5)99.4 %
101.3 %
(1)Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred.(2)Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income.(3)Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income.(4)Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts.(5)Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production.Comparable cemetery revenue increased $4.7 million, or 0.9%, primarily due to higher other revenue of $8.0 million offset by lower core revenue of $3.3 million.Core revenue decreased $3.3 million driven by a $2.9 million decline in atneed revenue and relatively flat recognized preneed revenue. While recognized preneed merchandise and service revenue increased $5.7 million, this was offset by a $6.1 million decrease in recognized preneed property revenue primarily related to the timing of revenue recognition on newly constructed property versus the prior year quarter.Other revenue was higher by $8.0 million, or 24.9%, compared to the prior year quarter primarily from an increase in endowment care trust fund income.Comparable cemetery gross profit increased $5.3 million to $185.2 million. The gross profit percentage increased 70 basis points to 36.4% from 35.7% primarily due to the higher revenue mentioned above, coupled with effective cost management.Comparable preneed cemetery sales production increased $8.0 million, or 2.2%, and was positively impacted by an increase in the number of contracts sold. This increase was partially offset by a decrease in large property sales.Other Financial Results Corporate general and administrative expenses increased $18.7 million to $33.7 million compared to $15.0 million in the prior year fourth quarter. In the prior year fourth quarter, we recognized a $20.3 million reduction in our California legal reserve. Adjusting for the $20.3 million, corporate general and administrative expenses declined $1.6 million primarily due to net improved self-insured claims experience as compared to the prior year.Interest expense increased $0.9 million to $64.1 million in the fourth quarter of 2025 primarily due to higher weighted average balances, partially offset by a lower average rate on floating rate debt.The GAAP effective income tax rate for the fourth quarter of 2025 was 24.5% up from 23.3% in the prior year quarter. The lower rate in the prior year quarter was attributable to state legislative changes and reductions in uncertain tax positions in the prior year quarter. Our adjusted effective income tax rate was 24.8% in the fourth quarter of 2025 and 2024.Cash Flow and Capital Spending (Dollars in millions)Three Months Ended
December 31,Twelve Months Ended
December 31,
2025
20242025
2024Net cash provided by operating activities$ 212.9
$ 264.1$ 942.8
$ 944.9Legal settlement payments0.2
1.21.1
29.5Restructuring charge payments0.1
2.321.6
2.3Net cash provided by operating activities excluding special items$ 213.2
$ 267.6$ 965.5
$ 976.7Cash taxes included in net cash provided by operating activities excluding special items$ 25.8
$ 5.1$ 140.0
$ 20.8Net cash provided by operating activities decreased $51.2 million to $212.9 million in the fourth quarter of 2025 compared to $264.1 million in the fourth quarter of 2024. Excluding special items, net cash provided by operating activities decreased $54.4 million primarily due to expected higher cash interest of $24.2 million and higher cash taxes of $20.7 million. Higher operating income of $13.3 million was more than offset by a net $22.8 million use of other working capital largely due to the timing of funding payroll quarter over quarter. The higher cash interest was primarily due to the timing of interest payments and the reduction of our bank credit facility, both of which were associated with our September 2024 bond financing.A summary of our capital expenditures is set forth below: (Dollars in millions)Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024Capital improvements at existing field locations$ 51.3
$ 43.0
$ 135.9
$ 134.3Development of cemetery property46.8
42.4
167.9
164.8Digital investments and corporate 8.4
10.3
24.4
33.0Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures)106.5
95.7
328.2
332.1Growth capital expenditures/construction of new funeral service locations19.2
10.5
60.4
41.5Total capital expenditures$ 125.7
$ 106.2
$ 388.6
$ 373.6Total capital expenditures increased $19.5 million in the current quarter. There was an expected $8.3 million increase in spend on capital improvements at existing field locations, which brought the year to date spend in line with prior year. In addition, there was an $8.7 million increase in spend on growth capital expenditures primarily related to construction of new funeral homes during the quarter.Trust Fund Returns Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of December 31, 2025 is set forth below:
Three Months
Twelve MonthsPreneed funeral1.8 %
14.7 %Preneed cemetery1.9 %
15.6 %Cemetery perpetual care1.9 %
14.7 %Combined trust funds1.9 %
15.1 %Non-GAAP Financial MeasuresEarnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations by adjusting for the items listed below. We also believe these measures help facilitate comparisons to our competitors' operating results.Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. See "Cash Flow and Capital Spending" in this press release for a reconciliation of net cash provided by operating activities to net cash provided by operating activities excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.(Dollars in millions, except diluted EPS)Three Months Ended December 31,
2025
2024
NetIncome
DilutedEPS
NetIncome
DilutedEPSNet income attributable to common stockholders, as reported$ 159.4
$ 1.13
$ 151.4
$ 1.04Pre-tax reconciling items:
Losses on divestitures and impairment charges, net2.5
0.02
17.2
0.12Losses on early extinguishment of debt, net0.5
—
—
—Reduction in legal reserve (1)—
—
(20.3)
(0.14)Restructuring charge—
—
11.5
0.08Tax reconciling items:
Tax effect from special items (0.6)
—
(1.9)
(0.01)Change in uncertain tax reserves and other(0.7)
(0.01)
(3.1)
(0.03)Earnings excluding special items and diluted earnings per share excluding special items $ 161.1
$ 1.14
$ 154.8
$ 1.06
Diluted weighted average shares outstanding
141.1
146.2 (Dollars in millions, except diluted EPS)Twelve Months Ended December 31,
2025
2024
NetIncome
DilutedEPS
NetIncome
DilutedEPSNet income attributable to common stockholders, as reported$ 542.6
$ 3.80
$ 518.6
$ 3.53Pre-tax reconciling items:
(Gains) losses on divestitures and impairment charges, net(6.2)
(0.04)
12.5
0.09Losses on early extinguishment of debt, net0.5
—
—
—Growth (reduction) in legal reserve (1)6.4
0.04
(20.3)
(0.14)Restructuring charge2.0
0.01
11.5
0.08Tax reconciling items:
Tax effect from special items(0.4)
—
(0.4)
—Change in uncertain tax reserves and other3.9
0.04
(4.0)
(0.03)Earnings excluding special items and diluted earnings per share excluding special items$ 548.8
$ 3.85
$ 517.9
$ 3.53
Diluted weighted average shares outstanding
142.7
146.8
(1) Corporate general and administrative expenses in the fourth quarter of 2024, includes a reduction of our California legal reserve of $20.3 million as the primary claims period expired.
View original content:https://www.prnewswire.com/news-releases/service-corporation-international-announces-fourth-quarter-2025-financial-results-and-provides-2026-guidance-302685623.htmlSOURCE Service Corporation International
Original: SERVICE CORPORATION INTERNATIONAL ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND PROVIDES 2026 GUIDANCE
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