SERVICE CORPORATION INTERNATIONAL ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS, CONFIRMS 2025 EARNINGS PER SHARE GUIDANCE AND RAISES 2025 CASH FLOW GUIDANCE
Service Corporation International (NYSE: SCI), North America's leading deathcare provider, reported strong Q2 2025 results with revenue growth of $31.4 million compared to Q2 2024. The company achieved adjusted EPS of $0.88, representing an 11% increase year-over-year, driven by higher funeral revenue and effective cost management.
Key highlights include a 3.1% growth in comparable funeral sales average and a 5.3% increase in cemetery preneed sales. Operating cash flow was $166.5 million, impacted by an expected increase in cash taxes. The company confirmed its 2025 EPS guidance of $3.70-$4.00 and raised cash flow guidance to $880-$940 million due to lower cash taxes and stronger working capital benefits.
SCI maintains a significant presence with 1,485 funeral locations and 498 cemeteries across North America, serving over 700,000 families annually.
Service Corporation International (NYSE: SCI), il principale fornitore di servizi funebri del Nord America, ha riportato solidi risultati per il secondo trimestre del 2025 con una crescita dei ricavi di 31,4 milioni di dollari rispetto al secondo trimestre del 2024. L'azienda ha raggiunto un utile per azione rettificato di 0,88 dollari, con un aumento dell'11% su base annua, grazie a maggiori ricavi funerari e a una gestione efficace dei costi.
Tra i principali risultati si evidenzia una crescita del 3,1% nelle vendite funerarie comparabili e un incremento del 5,3% nelle vendite anticipate di cimiteri. Il flusso di cassa operativo è stato di 166,5 milioni di dollari, influenzato da un previsto aumento delle tasse in contanti. L'azienda ha confermato le previsioni di utile per azione per il 2025 tra 3,70 e 4,00 dollari e ha aumentato le stime sul flusso di cassa a 880-940 milioni di dollari, grazie a tasse in contanti più basse e a benefici più forti sul capitale circolante.
SCI mantiene una presenza significativa con 1.485 sedi funerarie e 498 cimiteri in Nord America, servendo oltre 700.000 famiglie ogni anno.
Service Corporation International (NYSE: SCI), el principal proveedor de servicios funerarios de América del Norte, reportó sólidos resultados en el segundo trimestre de 2025 con un crecimiento de ingresos de 31,4 millones de dólares en comparación con el segundo trimestre de 2024. La compañía logró un EPS ajustado de 0,88 dólares, lo que representa un aumento del 11% interanual, impulsado por mayores ingresos funerarios y una gestión eficaz de costos.
Los aspectos destacados incluyen un crecimiento del 3,1% en ventas funerarias comparables y un aumento del 5,3% en ventas anticipadas de cementerios. El flujo de caja operativo fue de 166,5 millones de dólares, afectado por un aumento esperado en impuestos en efectivo. La compañía confirmó su previsión de EPS para 2025 entre 3,70 y 4,00 dólares y elevó la guía de flujo de caja a 880-940 millones de dólares debido a impuestos en efectivo más bajos y mayores beneficios de capital de trabajo.
SCI mantiene una presencia significativa con 1.485 ubicaciones funerarias y 498 cementerios en toda América del Norte, atendiendo a más de 700.000 familias anualmente.
Service Corporation International (NYSE: SCI), 북미 최대의 장례 서비스 제공업체는 2025년 2분기 실적에서 2024년 2분기 대비 3,140만 달러의 매출 증가를 보고했습니다. 회사는 조정 주당순이익(EPS) 0.88달러를 기록했으며, 이는 전년 대비 11% 증가한 수치로, 장례 매출 증가와 효과적인 비용 관리에 힘입은 결과입니다.
주요 내용으로는 비교 가능한 장례 매출이 3.1% 증가했고, 묘지 사전 판매가 5.3% 상승했습니다. 영업 현금 흐름은 1억 6,650만 달러였으며, 예상된 현금 세금 증가의 영향을 받았습니다. 회사는 2025년 EPS 가이던스를 3.70~4.00달러로 유지하고, 현금 세금 감소와 운전자본 혜택 강화를 반영하여 현금 흐름 가이던스를 8억 8,000만~9억 4,000만 달러로 상향 조정했습니다.
SCI는 북미 전역에 1,485개의 장례식장과 498개의 묘지를 운영하며 매년 70만 가구 이상에 서비스를 제공하고 있습니다.
Service Corporation International (NYSE : SCI), principal fournisseur de services funéraires en Amérique du Nord, a annoncé de solides résultats pour le deuxième trimestre 2025 avec une croissance des revenus de 31,4 millions de dollars par rapport au deuxième trimestre 2024. La société a enregistré un BPA ajusté de 0,88 dollar, soit une augmentation de 11 % d'une année sur l'autre, portée par une hausse des revenus funéraires et une gestion efficace des coûts.
Les points clés incluent une croissance de 3,1 % des ventes funéraires comparables et une augmentation de 5,3 % des ventes anticipées de cimetières. Le flux de trésorerie opérationnel s'est élevé à 166,5 millions de dollars, impacté par une augmentation prévue des taxes en espèces. La société a confirmé ses prévisions de BPA pour 2025 entre 3,70 et 4,00 dollars et a relevé ses prévisions de flux de trésorerie à 880-940 millions de dollars grâce à des taxes en espèces plus faibles et à des bénéfices plus importants liés au fonds de roulement.
SCI maintient une présence significative avec 1 485 sites funéraires et 498 cimetières à travers l'Amérique du Nord, desservant plus de 700 000 familles chaque année.
Service Corporation International (NYSE: SCI), Nordamerikas führender Anbieter im Bereich Bestattungsdienstleistungen, meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Umsatzwachstum von 31,4 Millionen US-Dollar im Vergleich zum zweiten Quartal 2024. Das Unternehmen erzielte ein bereinigtes Ergebnis je Aktie (EPS) von 0,88 US-Dollar, was einer Steigerung von 11 % gegenüber dem Vorjahr entspricht, angetrieben durch höhere Bestattungserlöse und effektives Kostenmanagement.
Zu den wichtigsten Highlights zählen ein Wachstum der vergleichbaren Bestattungsverkäufe um 3,1 % sowie ein Anstieg der Vorverkaufszahlen für Friedhöfe um 5,3 %. Der operative Cashflow betrug 166,5 Millionen US-Dollar und wurde durch erwartete höhere Barsteuern beeinflusst. Das Unternehmen bestätigte seine EPS-Prognose für 2025 von 3,70 bis 4,00 US-Dollar und hob die Cashflow-Prognose auf 880 bis 940 Millionen US-Dollar an, bedingt durch geringere Barsteuern und stärkere Working-Capital-Vorteile.
SCI verfügt über eine bedeutende Präsenz mit 1.485 Bestattungsstandorten und 498 Friedhöfen in Nordamerika und betreut jährlich über 700.000 Familien.
- Adjusted EPS increased 11% to $0.88 compared to $0.79 in Q2 2024
- Revenue grew by $31.4 million over Q2 2024
- Comparable funeral gross profit grew 14.8% with margin expansion
- Cemetery preneed sales production increased 5.3%
- Cash flow guidance raised to $880-$940 million for 2025
- Operating cash flow decreased to $166.5 million from $196.9 million due to higher cash taxes
- Legal settlement costs of $6.4 million in Q2 2025
- $1.6 million in restructuring charges
Insights
SCI delivered solid Q2 results with 11% EPS growth, funeral segment strength, and raised cash flow guidance.
Service Corporation International reported impressive Q2 results with adjusted EPS of
The funeral segment performed exceptionally well, with comparable funeral gross profit surging
Cemetery operations showed modest revenue growth, but the
From a cash flow perspective, operating cash flow was
Management has maintained their 2025 EPS guidance range of
The company's capital allocation strategy remains focused on
With a dominant market position as North America's leading deathcare provider serving over 700,000 families annually across 1,485 funeral locations and 498 cemeteries, SCI continues to effectively leverage its scale while executing its long-term growth strategy focused on revenue growth, scale advantages, and disciplined capital deployment.
Conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time.
Second Quarter Highlights:
- Revenue grew
$31.4 million - Gross profit increased
$13.5 million 5% , in the current quarter - Comparable total funeral sales average grew
3.1% over the second quarter of 2024 - Cemetery preneed sales production increased
5.3% in the current quarter - GAAP earnings per share was
$0.86 $0.81 6% growth over the prior year quarter - Adjusted earnings per share was
$0.88 $0.79 11% growth over the prior year quarter - Net cash provided by operating activities was
$166.5 million $196.9 million $84.3 million - Excluding special items and cash taxes paid, net cash provided by operating activities increased
$32.7 million 14%
Tom Ryan, the Company's Chairman and CEO, commented on the second quarter performance:
"We are pleased to report adjusted earnings per share of
In the cemetery segment, we continue to focus on sales production, which led to increases in both preneed and atneed sales production. A
We remain committed to our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value. With these results, we believe we are well positioned to achieve our 2025 targeted results. I would like to extend a very special thank you to our 25,000 associates for their ongoing commitment to providing excellent service to our client families."
Details of our second quarter 2025 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 June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 1,065.4 | $ 1,034.0 | $ 2,139.6 | $ 2,079.4 | |||
Operating income | $ 224.5 | $ 220.8 | $ 476.1 | $ 453.0 | |||
Net income attributable to common stockholders | $ 122.9 | $ 118.2 | $ 265.7 | $ 249.5 | |||
Diluted earnings per share | $ 0.86 | $ 0.81 | $ 1.84 | $ 1.69 | |||
Earnings excluding special items (1) | $ 125.5 | $ 115.9 | $ 265.1 | $ 247.8 | |||
Diluted earnings per share excluding special items (1) | $ 0.88 | $ 0.79 | $ 1.84 | $ 1.68 | |||
Diluted weighted average shares outstanding | 143.0 | 146.8 | 144.1 | 147.3 | |||
Net cash provided by operating activities | $ 166.5 | $ 196.9 | $ 477.6 | $ 417.0 | |||
Net cash provided by operating activities excluding special items (1) | $ 168.3 | $ 219.9 | $ 484.2 | $ 440.0 | |||
(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 |
- Diluted earnings per share was
$0.86 $0.81 $4.1 million $6.4 million $1.6 million $1.9 million $0.88 $0.79 11% adjusted diluted earnings per share growth over the prior year quarter. - Excluding an expected increase in cash taxes paid of
$84.3 million $53.9 million $260.8 million $32.7 million $262.6 million
CONFIRMED 2025 EARNINGS PER SHARE GUIDANCE AND
RAISED 2025 CASH FLOW GUIDANCE
Our annual guidance range for 2025 detailed below is confirmed for earnings per share of
(Dollars in millions, except per share amounts) | 2025 Outlook | Revised 2025 Outlook | |||||
Diluted earnings per share excluding special items (1) | |||||||
Net cash provided by operating activities excluding special items and cash taxes (1) | |||||||
Cash taxes expected in 2025 (at the midpoint of Diluted earnings per share guidance) | |||||||
Net cash provided by operating activities excluding special items (1) | |||||||
Capital improvements at existing field locations | |||||||
Development of cemetery property | |||||||
Digital investments and corporate | |||||||
Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) | |||||||
(1) | Diluted earnings per share excluding special items 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 2025 excludes the following because this information is not currently available for 2025: Expenses net of insurance recoveries related to weather events and 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 or cash outflows 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. |
CONFERENCE CALL AND WEBCAST
We will host a conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 0839787. 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 August 7, 2025 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 2965589. Additionally, a replay of the conference call will be available on our website for approximately three months.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE: SCI), headquartered in
For additional information contact: InvestorRelations@sci-us.com | ||||
Investors: | Trey Bocage - Director / Investor Relations | (713) 525-3454 | ||
Media: | Jay Andrew - Assistant Vice President / Corporate Communications | (713) 525-3468 | ||
CAUTIONARY 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," "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, significant reduction in consumer confidence and customer demand, and/or recession.
- 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.
- Disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between
the United States and other countries could increase costs to our business. - 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 operational 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 2024 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.
SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE SECOND QUARTER OF 2025
Consolidated Statement of Operations (Unaudited) | |||||||
(Dollars in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 1,065,444 | $ 1,034,016 | $ 2,139,611 | $ 2,079,398 | |||
Cost of revenue | (794,006) | (776,101) | (1,576,756) | (1,547,270) | |||
Gross profit | 271,438 | 257,915 | 562,855 | 532,128 | |||
Corporate general and administrative expenses | (49,466) | (38,998) | (94,167) | (80,323) | |||
Restructuring charge | (1,575) | — | (1,575) | — | |||
Gains on divestitures and impairment charges, net | 4,062 | 1,924 | 9,033 | 1,240 | |||
Operating income | 224,459 | 220,841 | 476,146 | 453,045 | |||
Interest expense | (64,071) | (64,384) | (125,554) | (128,736) | |||
Other income, net | 3,914 | 1,725 | 7,066 | 4,187 | |||
Income before income taxes | 164,302 | 158,182 | 357,658 | 328,496 | |||
Provision for income taxes | (41,378) | (39,962) | (91,807) | (79,002) | |||
Net income | 122,924 | 118,220 | 265,851 | 249,494 | |||
Net income attributable to noncontrolling interests | (59) | (54) | (106) | (27) | |||
Net income attributable to common stockholders | $ 122,865 | $ 118,166 | $ 265,745 | $ 249,467 | |||
Basic earnings per share: | |||||||
Net income attributable to common stockholders | $ 0.87 | $ 0.81 | $ 1.86 | $ 1.71 | |||
Basic weighted average number of shares | 141,897 | 145,297 | 143,001 | 145,782 | |||
Diluted earnings per share: | |||||||
Net income attributable to common stockholders | $ 0.86 | $ 0.81 | $ 1.84 | $ 1.69 | |||
Diluted weighted average number of shares | 142,992 | 146,784 | 144,134 | 147,348 | |||
Consolidated Balance Sheet (Unaudited) | |||
(Dollars in thousands, except share amounts) | |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 255,386 | $ 218,766 | |
Receivables, net | 85,085 | 94,341 | |
Inventories | 32,406 | 33,318 | |
Income tax receivable | 19,356 | 3,775 | |
Other | 41,908 | 27,130 | |
Total current assets | 434,141 | 377,330 | |
Preneed receivables, net of reserves of | 7,065,296 | 6,739,332 | |
Cemetery property | 2,153,281 | 2,129,404 | |
Property and equipment, net | 2,626,199 | 2,581,069 | |
Goodwill | 2,095,945 | 2,081,015 | |
Deferred charges and other assets, net of reserves of | 1,328,228 | 1,317,256 | |
Cemetery perpetual care trust investments | 2,277,115 | 2,154,032 | |
Total assets | $ 17,980,205 | $ 17,379,438 | |
LIABILITIES & EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 651,283 | $ 639,989 | |
Current maturities of long-term debt | 61,910 | 83,850 | |
Total current liabilities | 713,193 | 723,839 | |
Long-term debt | 4,976,111 | 4,751,448 | |
Deferred revenue, net | 1,768,910 | 1,755,170 | |
Deferred tax liability | 655,564 | 649,195 | |
Other liabilities | 528,524 | 513,480 | |
Deferred receipts held in trust | 5,507,354 | 5,162,525 | |
Care trusts' corpus | 2,270,196 | 2,145,112 | |
Equity: | |||
Common stock, | 140,806 | 144,695 | |
Capital in excess of par value | 967,329 | 986,830 | |
Retained earnings | 437,752 | 553,701 | |
Accumulated other comprehensive gain (loss) | 13,901 | (7,221) | |
Total common stockholders' equity | 1,559,788 | 1,678,005 | |
Noncontrolling interests | 565 | 664 | |
Total equity | 1,560,353 | 1,678,669 | |
Total liabilities and equity | $ 17,980,205 | $ 17,379,438 |
Consolidated Statement of Cash Flows (Unaudited) | |||
(Dollars in thousands) | Six months ended June 30, | ||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income | $ 265,851 | $ 249,494 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,257 | 101,856 | |
Amortization of intangibles | 8,441 | 8,627 | |
Amortization of cemetery property | 48,195 | 46,336 | |
Amortization of loan costs | 4,383 | 3,519 | |
Provision for expected credit losses | 5,234 | 7,644 | |
Provision for deferred income taxes | 4,621 | 7,553 | |
Gains on divestitures and impairment charges, net | (9,033) | (1,240) | |
Share-based compensation | 9,589 | 9,586 | |
Change in assets and liabilities, net of effects from acquisitions and divestitures: | |||
Decrease in receivables | 6,205 | 7,296 | |
(Increase) decrease in other assets | (16,110) | 15,969 | |
Increase (decrease) in payables and other liabilities | 11,996 | (17,104) | |
Effect of preneed sales production and maturities: | |||
Increase in preneed receivables, net and trust investments | (28,062) | (124,609) | |
Increase in deferred revenue, net | 23,785 | 53,342 | |
Increase in deferred receipts held in trust | 34,228 | 48,731 | |
Net cash provided by operating activities | 477,580 | 417,000 | |
Cash flows from investing activities: | |||
Capital expenditures | (161,201) | (170,963) | |
Business acquisitions, net of cash acquired | (28,242) | (38,490) | |
Real estate acquisitions | (5,422) | (22,151) | |
Corporate headquarters | (26,759) | (4,915) | |
Proceeds from divestitures and sales of property and equipment | 26,762 | 11,339 | |
Payments for Company-owned life insurance policies | (130) | (2,831) | |
Proceeds from Company-owned life insurance policies and other | 3,757 | 2,000 | |
Other investing activities | — | (9,814) | |
Net cash used in investing activities | (191,235) | (235,825) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 495,001 | 296,137 | |
Scheduled payments of debt | (12,827) | (11,665) | |
Early payments and extinguishment of debt | (305,000) | (225,000) | |
Proceeds from corporate headquarters debt facility | 17,120 | — | |
Principal payments on finance leases | (18,853) | (18,213) | |
Proceeds from exercise of stock options | 4,040 | 17,859 | |
Purchase of Company common stock | (324,023) | (176,417) | |
Payments of dividends | (91,129) | (87,328) | |
Bank overdrafts and other | (7,354) | (10,536) | |
Net cash used in financing activities | (243,025) | (215,163) | |
Effect of foreign currency | 5,800 | (2,665) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 49,120 | (36,653) | |
Cash, cash equivalents, and restricted cash at beginning of period | 221,399 | 224,761 | |
Cash, cash equivalents, and restricted cash at end of period | $ 270,519 | $ 188,108 | |
Consolidated Segment Results (See definitions of revenue line items later in this appendix.) | |||||||
(Dollars in millions, except funeral services performed and | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Consolidated funeral: | |||||||
Atneed revenue | $ 296.1 | $ 283.4 | $ 625.2 | $ 598.7 | |||
Matured preneed revenue | 183.5 | 178.6 | 389.3 | 368.7 | |||
Core revenue | 479.6 | 462.0 | 1,014.5 | 967.4 | |||
Non-funeral home revenue | 25.7 | 22.9 | 53.4 | 46.6 | |||
Non-funeral home preneed sales revenue | 26.4 | 29.1 | 48.6 | 58.2 | |||
Core general agency and other revenue | 59.7 | 51.8 | 114.4 | 98.3 | |||
Total revenue | $ 591.4 | $ 565.8 | $ 1,230.9 | $ 1,170.5 | |||
Gross profit | $ 116.0 | $ 100.4 | $ 270.0 | $ 232.3 | |||
Gross profit percentage | 19.6 % | 17.7 % | 21.9 % | 19.8 % | |||
Funeral services performed | 87,014 | 86,031 | 184,868 | 180,397 | |||
Average revenue per service | $ 5,807 | $ 5,636 | $ 5,777 | $ 5,621 | |||
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Consolidated cemetery: | |||||||
Atneed property revenue | $ 37.0 | $ 35.3 | $ 74.2 | $ 70.3 | |||
Atneed merchandise and service revenue | 74.0 | 72.4 | 149.1 | 147.1 | |||
Total atneed revenue | 111.0 | 107.7 | 223.3 | 217.4 | |||
Recognized preneed property revenue | 220.4 | 225.1 | 409.1 | 424.8 | |||
Recognized preneed merchandise and service revenue | 105.8 | 100.0 | 204.3 | 198.3 | |||
Total recognized preneed revenue | 326.2 | 325.1 | 613.4 | 623.1 | |||
Core revenue | 437.2 | 432.8 | 836.7 | 840.5 | |||
Other cemetery revenue | 36.9 | 35.4 | 72.1 | 68.4 | |||
Total revenue | $ 474.1 | $ 468.2 | $ 908.8 | $ 908.9 | |||
Gross profit | $ 155.5 | $ 157.5 | $ 292.9 | $ 299.8 | |||
Gross profit percentage | 32.8 % | 33.6 % | 32.2 % | 33.0 % | |||
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended June 30, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending June 30, 2025.
(Dollars in millions, except average revenue per service and average revenue per contract sold) | Three months ended June 30, | ||||||
2025 | 2024 | Var | % | ||||
Comparable funeral revenue: | |||||||
Atneed revenue (1) | $ 286.1 | $ 280.5 | $ 5.6 | 2.0 % | |||
Matured preneed revenue (2) | 179.9 | 177.6 | 2.3 | 1.3 % | |||
Core revenue (3) | 466.0 | 458.1 | 7.9 | 1.7 % | |||
Non-funeral home revenue (4) | 25.6 | 22.8 | 2.8 | 12.3 % | |||
Non-funeral home preneed sales revenue (5) | 26.4 | 29.1 | (2.7) | (9.3) % | |||
Core general agency and other revenue (6) | 58.8 | 51.6 | 7.2 | 14.0 % | |||
Total comparable revenue | $ 576.8 | $ 561.6 | $ 15.2 | 2.7 % | |||
Comparable gross profit | $ 114.6 | $ 99.8 | $ 14.8 | 14.8 % | |||
Comparable gross profit percentage | 19.9 % | 17.8 % | 2.1 % | ||||
Comparable funeral services performed: | |||||||
Atneed | 44,281 | 45,092 | (811) | (1.8) % | |||
Matured preneed | 25,856 | 26,140 | (284) | (1.1) % | |||
Total core | 70,137 | 71,232 | (1,095) | (1.5) % | |||
Non-funeral home | 14,485 | 14,121 | 364 | 2.6 % | |||
Total comparable funeral services performed | 84,622 | 85,353 | (731) | (0.9) % | |||
Comparable core cremation rate | 57.1 % | 56.9 % | 0.2 % | ||||
Total comparable cremation rate (7) | 64.3 % | 63.9 % | 0.4 % | ||||
Comparable funeral average revenue per service: | |||||||
Atneed | $ 6,461 | $ 6,221 | $ 240 | 3.9 % | |||
Matured preneed | 6,958 | 6,794 | 164 | 2.4 % | |||
Total core | 6,644 | 6,431 | 213 | 3.3 % | |||
Non-funeral home | 1,767 | 1,615 | 152 | 9.4 % | |||
Total comparable average revenue per service | $ 5,809 | $ 5,634 | $ 175 | 3.1 % | |||
Comparable funeral preneed sales production: | |||||||
Total preneed sales | $ 299.3 | $ 328.1 | $ (28.8) | (8.8) % | |||
Core contracts sold | 35,534 | 39,026 | (3,492) | (8.9) % | |||
Non-funeral home contracts sold | 21,080 | 24,481 | (3,401) | (13.9) % | |||
Core average revenue per contract sold | $ 6,607 | $ 6,487 | $ 120 | 1.8 % | |||
Non-funeral home average revenue per contract sold | $ 3,060 | $ 3,060 | $ — | — % | |||
(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
$15.2 million 2.7% , primarily due to a$7.9 million $7.2 million - Core funeral revenue increased
$7.9 million 1.7% , due to a favorable3.3% increase in core average revenue per service, partially offset by a1.5% decrease in core funeral services performed. The core cremation rate increased 20 basis points to57.1% . - Non-funeral home revenue increased
$2.8 million 9.4% increase in non-funeral home average revenue per service and a2.6% increase in non-funeral home services performed. - Non-funeral home preneed sales revenue decreased
$2.7 million - Core general agency and other revenue grew
$7.2 million - Comparable funeral gross profit increased
$14.8 million $114.6 million 17.8% to19.9% . This increase is primarily due to the increase in revenue mentioned above and our continued focus on managing our fixed cost structure. - Comparable preneed funeral sales production decreased
$28.8 million 8.8% , in the second quarter of 2025 compared to 2024. Core preneed sales production decreased$18.4 million 7.3% , primarily due to the transition to our new preneed insurance provider in July 2024. We expect to achieve improved insurance production over time as we complete this transition. Non-funeral home preneed sales production decreased$10.4 million 13.9% , due to our ongoing transition from trust to insurance-funded contracts mentioned above. The decline in production is expected to be temporary in nature as we anticipate the transition to insurance funded contracts will be complete in 2026.
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended June 30, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending June 30, 2025.
(Dollars in millions) | Three months ended June 30, | ||||||
2025 | 2024 | Var | % | ||||
Comparable cemetery revenue: | |||||||
Atneed property revenue | $ 36.8 | $ 35.3 | $ 1.5 | 4.2 % | |||
Atneed merchandise and service revenue | 73.5 | 72.3 | 1.2 | 1.7 % | |||
Total atneed revenue (1) | 110.3 | 107.6 | 2.7 | 2.5 % | |||
Recognized preneed property revenue | 217.5 | 225.2 | (7.7) | (3.4) % | |||
Recognized preneed merchandise and service revenue | 105.5 | 99.9 | 5.6 | 5.6 % | |||
Total recognized preneed revenue (2) | 323.0 | 325.1 | (2.1) | (0.6) % | |||
Core revenue (3) | 433.3 | 432.7 | 0.6 | 0.1 % | |||
Other revenue (4) | 36.7 | 35.5 | 1.2 | 3.4 % | |||
Total comparable revenue | $ 470.0 | $ 468.2 | $ 1.8 | 0.4 % | |||
Comparable gross profit | $ 153.3 | $ 157.6 | $ (4.3) | (2.7) % | |||
Comparable gross profit percentage | 32.6 % | 33.7 % | (1.1) % | ||||
Comparable cemetery preneed and atneed sales production: | |||||||
Property | $ 268.8 | $ 252.3 | $ 16.5 | 6.5 % | |||
Merchandise and services | 209.3 | 202.5 | 6.8 | 3.4 % | |||
Discounts and other | (3.7) | (0.4) | (3.3) | (825.0) % | |||
Preneed and atneed sales production | $ 474.4 | $ 454.4 | $ 20.0 | 4.4 % | |||
Preneed sales production | $ 366.5 | $ 348.0 | $ 18.5 | 5.3 % | |||
Recognition rate (5) | 91.3 % | 95.2 % | |||||
(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
$1.8 million 0.4% , in the second quarter of 2025 compared to the second quarter of 2024. The increase was due to higher core revenue of$0.6 million $1.2 million - Core revenue was higher by
$0.6 million $2.7 million 4.4% . This was partially offset by a$2.1 million $18.5 million 5.3% , due to an increase in both large and core sales, which will benefit us in future periods, as this current undeveloped property sold is constructed and recognized. - Comparable cemetery gross profit decreased
$4.3 million $153.3 million 33.7% to32.6% as modest cemetery revenue growth was offset by higher selling compensation on higher sales production and partially mitigated by modest fixed cost growth as we continue to focus on managing our fixed cost structure.
Other Financial Results
- Corporate general and administrative expenses were
$49.5 million $10.5 million $6.4 million - Interest expense decreased
$0.3 million $64.1 million - The GAAP effective income tax rate for the second quarter of 2025 was
25.2% , down from25.3% in the prior year quarter. Our adjusted effective tax rate was25.4% in the second quarter of 2025 compared to25.8% in the prior year quarter. The lower effective tax rate in the current period was primarily due to non-taxable gains on the cash surrender value of certain life insurance policies as a result of gains in the financial markets during the quarter.
Cash Flow and Capital Spending
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities | $ 166.5 | $ 196.9 | $ 477.6 | $ 417.0 | |||
Legal settlement payments | 0.5 | 23.0 | 0.7 | 23.0 | |||
Restructuring charge payments | 1.3 | — | 5.9 | — | |||
Net cash provided by operating activities excluding special items | $ 168.3 | $ 219.9 | $ 484.2 | $ 440.0 | |||
Cash taxes included in net cash provided by operating activities excluding special items | $ 94.3 | $ 10.0 | $ 99.2 | $ 11.8 | |||
Excluding an expected increase in cash taxes paid of
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Capital improvements at existing field locations | $ 29.1 | $ 29.4 | $ 49.8 | $ 54.3 | |||
Development of cemetery property | 34.7 | 39.9 | 76.0 | 78.6 | |||
Digital investments and corporate | 5.1 | 13.1 | 9.9 | 19.5 | |||
Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) | $ 68.9 | $ 82.4 | $ 135.7 | $ 152.4 | |||
Growth capital expenditures/construction of new funeral service locations | 14.1 | 9.2 | 25.5 | 18.6 | |||
Total capital expenditures | $ 83.0 | $ 91.6 | $ 161.2 | $ 171.0 | |||
Total capital expenditures decreased in the current quarter by
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 June 30, 2025 is set forth below:
Three Months | Six Months | |||
Preneed funeral | 8.4 % | 7.6 % | ||
Preneed cemetery | 8.6 % | 8.1 % | ||
Cemetery perpetual care | 8.0 % | 7.6 % | ||
Combined trust funds | 8.4 % | 7.8 % |
Non-GAAP Financial Measures
Earnings excluding special items and diluted earnings per share 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, as they are not influenced by certain income or expense items not affecting operations. 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. 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 June 30, | ||||||
2025 | 2024 | ||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | ||||
Net income attributable to common stockholders, as reported | $ 122.9 | $ 0.86 | $ 118.2 | $ 0.81 | |||
Pre-tax reconciling items: | |||||||
Gains on divestitures and impairment charges, net | (4.1) | (0.03) | (1.9) | (0.01) | |||
Legal settlement | 6.4 | 0.04 | — | — | |||
Restructuring charge | 1.6 | 0.01 | — | — | |||
Tax reconciling items: | |||||||
Tax effect from significant items | (0.9) | — | 0.5 | — | |||
Change in uncertain tax reserves and other | (0.4) | — | (0.9) | (0.01) | |||
Earnings excluding special items and diluted earnings per share excluding special items | $ 125.5 | $ 0.88 | $ 115.9 | $ 0.79 | |||
Diluted weighted average shares outstanding | 143.0 | 146.8 | |||||
(Dollars in millions, except diluted EPS) | Six months ended June 30, | ||||||
2025 | 2024 | ||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | ||||
Net income attributable to common stockholders, as reported | $ 265.7 | $ 1.84 | $ 249.5 | $ 1.69 | |||
Pre-tax reconciling items: | |||||||
Gains on divestitures and impairment charges, net | (9.0) | (0.06) | (1.2) | (0.01) | |||
Legal settlement | 6.4 | 0.04 | — | — | |||
Restructuring charge | 1.6 | 0.01 | — | — | |||
Tax reconciling items: | |||||||
Tax effect from significant items | 0.4 | 0.01 | 0.4 | — | |||
Change in uncertain tax reserves and other | — | — | (0.9) | — | |||
Earnings excluding special items and diluted earnings per share excluding special items | $ 265.1 | $ 1.84 | $ 247.8 | $ 1.68 | |||
Diluted weighted average shares outstanding | 144.1 | 147.3 | |||||
View original content:SOURCE Service Corporation International
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