SERVICE CORPORATION INTERNATIONAL ANNOUNCES THIRD QUARTER 2025 FINANCIAL RESULTS, CONFIRMS 2025 EARNINGS MIDPOINT AND RAISES 2025 CASH FLOW GUIDANCE
Service Corporation International (NYSE: SCI) reported third quarter 2025 results showing continued revenue and cash-flow strength. Q3 revenue was $1,058.1 million, up $44.1 million (4.4%) year-over-year. Adjusted diluted EPS was $0.87, up 10% versus Q3 2024; GAAP diluted EPS was $0.83. Net cash provided by operating activities for Q3 was $252.3 million and year-to-date cash flow rose to $729.9 million, up $49.1 million (7.2%). Cemetery preneed sales production increased 9.6% in the quarter.
The company confirmed a $3.85 midpoint for 2025 adjusted EPS and narrowed full-year guidance to $3.80–$3.90, while raising 2025 cash-flow outlook to $910–$950 million.
Service Corporation International (NYSE: SCI) ha riportato i risultati del terzo trimestre 2025, mostrando una continua solidità di fatturato e flussi di cassa. Il fatturato del Q3 è stato di 1.058,1 milioni di dollari, in aumento di 44,1 milioni (4,4%) rispetto all'anno precedente. L’utile per azione diluito rettificato è stato di 0,87$, in rialzo del 10% rispetto al Q3 2024; l'utile diluito GAAP è stato di 0,83$. Il flusso di cassa netto fornito dalle attività operative per il Q3 è stato di 252,3 milioni di dollari e il flusso di cassa cumulato da inizio anno è salito a 729,9 milioni, in aumento di 49,1 milioni (7,2%). La produzione di vendite preregistrate del cimitero è aumentata del 9,6% nel trimestre.
La società ha confermato una mediana di 3,85 dollari per il 2025 per l'EPS rettificato e ha precisato le previsioni annuali a 3,80–3,90 dollari, pur aumentando le previsioni di flusso di cassa per il 2025 a 910–950 milioni di dollari.
Service Corporation International (NYSE: SCI) informó los resultados del tercer trimestre de 2025, mostrando fortaleza continua en ingresos y flujo de caja. Los ingresos del Q3 fueron de 1.058,1 millones de dólares, un incremento de 44,1 millones (4,4%) respecto al año anterior. EPS diluido ajustado fue de 0,87 dólares, un incremento del 10% frente al Q3 2024; el EPS diluido GAAP fue de 0,83 dólares. El flujo de caja neto generado por las actividades operativas para el Q3 fue de 252,3 millones de dólares y el flujo de caja acumulado en lo que va del año alcanzó 729,9 millones, un aumento de 49,1 millones (7,2%). La producción de ventas prenecesarias del cementerio aumentó un 9,6% en el trimestre.
La empresa confirmó un punto medio de 3,85 dólares para 2025 en EPS ajustado y redujo la guía anual a 3,80–3,90 dólares, mientras elevaba las perspectivas de flujo de caja para 2025 a 910–950 millones de dólares.
Service Corporation International (NYSE: SCI)는 2025년 3분기 실적에서 매출과 현금흐름의 강세를 계속 확인했습니다. 3분기 매출은 10억 5810만 달러로 전년 대비 4410만 달러(4.4%) 증가했습니다. 조정 희석 주당순이익(EPS)은 0.87달러로 2024년 3분기 대비 10% 상승했습니다; GAAP 희석 EPS는 0.83달러였습니다. 영업활동으로 인한 순현금흐름은 3분기에 2억 5230만 달러였고 연간 누적 현금흐름은 7억 2990만 달러로 4910만 달러(7.2%) 증가했습니다. 묘지 선매 매출 생산은 분기 동안 9.6% 증가했습니다.
회사는 2025년 조정 EPS의 중간값을 3.85달러로 확인했고 연간 가이던스를 3.80–3.90달러로 축소했으며, 2025년 현금흐름 전망도 9.10–9.50억 달러로 상향 조정했습니다.
Service Corporation International (NYSE: SCI) a publié les résultats du troisième trimestre 2025, montrant une continuité de la solidité du chiffre d'affaires et des flux de trésorerie. Le chiffre d'affaires du T3 s'est élevé à 1 058,1 millions de dollars, en hausse de 44,1 millions (4,4%) par rapport à l'année précédente. EPS dilué ajusté est de 0,87$, en hausse de 10% par rapport au T3 2024; l'EPS dilué GAAP est de 0,83$. La trésorerie nette fournie par les activités opérationnelles pour le T3 était de 252,3 millions de dollars et la trésorerie cumulée depuis le début de l'année a atteint 729,9 millions, en hausse de 49,1 millions (7,2%). La production des ventes de pré-nécessités du cimetière a augmenté de 9,6% au cours du trimestre.
La société a confirmé une valeur médiane de 3,85 dollars pour 2025 en EPS ajusté et a réduit les prévisions annuelles à 3,80–3,90 dollars, tout en relevant les perspectives de flux de trésorerie pour 2025 à 910–950 millions de dollars.
Service Corporation International (NYSE: SCI) berichtete über die Ergebnisse des dritten Quartals 2025 und zeigte fortgesetzte Stärke bei Umsatz und Cashflow. Q3-Umsatz betrug 1.058,1 Mio. USD, ein Anstieg von 44,1 Mio. USD (4,4%) gegenüber dem Vorjahr. Angepasstes dilutes EPS betrug 0,87 USD, ein Anstieg von 10% gegenüber Q3 2024; GAAP dilutes EPS betrug 0,83 USD. Net cash provided by operating activities für Q3 betrug 252,3 Mio. USD und der kumulierte Cashflow für das Jahr stieg auf 729,9 Mio. USD, ein Anstieg von 49,1 Mio. USD (7,2%). Die Produktion von Friedhofsverkaufspräsentationen stieg im Quartal um 9,6%.
Das Unternehmen bestätigte einen Mittelkurs von 3,85 USD für 2025 beim bereinigten EPS und senkte die Jahresprognose auf 3,80–3,90 USD, während der Ausblick auf den Cashflow 2025 auf 910–950 Mio. USD angehoben wurde.
Service Corporation International (NYSE: SCI) أبلغت عن نتائج الربع الثالث من 2025 مع استمرار قوة الإيرادات وتدفق النقد. إيرادات الربع الثالث بلغت 1.058,1 مليون دولار، بزيادة 44,1 مليون دولار (4,4%) مقارنة بالعام السابق. ربحية السهم المخفّفة المعدلة وصلت إلى 0,87 دولار، بارتفاع 10% مقارنة بالربع الثالث 2024؛ ربحية السهم المخففة وفق GAAP كانت 0,83 دولار. صافي النقد الناتج من الأنشطة التشغيلية للربع الثالث كان 252,3 مليون دولار، وتدفقات النقد للعام حتى تاريخه ارتفعت إلى 729,9 مليون دولار، بزيادة 49,1 مليون دولار (7,2%). إنتاج مبيعات القبور المسبقة البيع ارتفع 9,6% في الربع.
OS Company أكدت نقطة وسيطة قدرها 3,85 دولار لـ2025 في EPS المعدل وقللت التوجيه السنوي إلى 3,80–3,90 دولارات، بينما رفعت آفاق التدفق النقدي لعام 2025 إلى 910–950 مليون دولار.
Service Corporation International (NYSE: SCI) 公布了2025年第三季度业绩，显示出收入和现金流的持续强劲。第三季度收入为10.581亿美元，同比增加4410万美元（4.4%）。调整后稀释每股收益(EPS)为0.87美元，较2024年Q3增长10%；GAAP稀释EPS为0.83美元。经营活动产生的净现金流量在第三季度为2.523亿美元，年初至今的现金流量上升至7.299亿美元，增加4910万美元（7.2%）。公墓预售销售产量在本季度增长了9.6%。
公司确认2025年调整后EPS中点为3.85美元，并将全年指引缩窄至3.80–3.90美元，同时将2025年的现金流展望上调至9.10–9.50亿美元。
- Revenue +$44.1M (4.4%) in Q3 2025 to $1,058.1M
- Adjusted diluted EPS +10% to $0.87 in Q3 2025
- Cemetery preneed sales production +9.6% in Q3 2025
- YTD net cash from operations +$49.1M (7.2%) to $729.9M
- Net cash provided by operating activities down $11.5M vs Q3 2024 to $252.3M
- Expected increase in cash taxes paid of $11.1M reduced Q3 cash flow
- Q3 GAAP diluted EPS rose only modestly to $0.83, impacted by $0.8M special items
Insights
SCI reported modest revenue and adjusted EPS growth, confirmed EPS midpoint, and raised cash flow guidance — a factual positive signal.
Service Corporation International delivered quarter-over-quarter improvements: revenue rose to
The business drivers are clear in the facts: cemetery preneed sales production increased
Key dependencies and risks stated include cash tax timing, working capital movements, and special items that management excluded from the outlook. The guidance table explicitly lists excluded items such as weather-related insurance recoveries, divestiture gains/losses, acquisition and integration costs, and potential litigation costs, any of which could materially alter GAAP EPS or GAAP cash flow. Monitor the company’s
Conference call on Thursday, October 30, 2025, at 8:00 a.m. Central Time.
Third Quarter Highlights:
- Revenue grew
$44.1 million 4.4% , over the third quarter of 2024 - Gross profit increased
$12.9 million 5% , in the current quarter - Comparable total funeral sales average grew
3.1% over the third quarter of 2024 supported by13.4% growth in non-funeral home sales average - Cemetery preneed sales production increased
9.6% in the current quarter - GAAP earnings per share was
$0.83 $0.81 - Adjusted earnings per share was
$0.87 $0.79 10% growth over the prior year quarter - Net cash provided by operating activities was
$252.3 million $263.8 million $11.1 million - Excluding special items and cash taxes paid, net cash provided by operating activities increased
$10.0 million $283.0 million - Year to date net cash provided by operating activities increased
$49.1 million 7.2% , to$729.9 million $680.8 million - When normalizing for cash tax increases, year to date net cash provided by operating activities excluding special items increased
$141.3 million 19.5% , to$866.1 million $724.8 million
Tom Ryan, the Company's Chairman and CEO, commented on the third quarter performance:
"We are proud to report adjusted earnings per share of
I would like to thank our 25,000 associates for their unwavering commitment in providing excellent service to our client families. We remain focused on our long-term growth strategy, which is on track as we continue to grow revenue, leverage our unparalleled scale, and allocate our capital wisely to enhance shareholder value."
Details of our third 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.
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(Dollars in millions, except for per share amounts) |
Three months ended September 30, |
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Nine months ended September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue |
$ 1,058.1 |
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$ 1,014.0 |
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$ 3,197.7 |
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$ 3,093.4 |
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$ 226.4 |
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$ 212.4 |
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$ 702.5 |
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$ 665.5 |
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Net income attributable to common stockholders |
$ 117.5 |
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$ 117.8 |
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$ 383.2 |
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$ 367.3 |
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Diluted earnings per share |
$ 0.83 |
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$ 0.81 |
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$ 2.68 |
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$ 2.50 |
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Earnings excluding special items (1) |
$ 122.7 |
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$ 115.3 |
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$ 387.8 |
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$ 363.1 |
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Diluted earnings per share excluding special items (1) |
$ 0.87 |
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$ 0.79 |
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$ 2.71 |
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$ 2.47 |
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Diluted weighted average shares outstanding |
141.4 |
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146.2 |
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143.2 |
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147.0 |
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Net cash provided by operating activities |
$ 252.3 |
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$ 263.8 |
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$ 729.9 |
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$ 680.8 |
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Net cash provided by operating activities excluding special items (1) |
$ 267.9 |
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$ 269.0 |
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$ 751.8 |
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$ 709.0 |
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(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
$0.83 $0.81 $0.4 million $0.4 million $3.5 million $0.87 $0.79 10% adjusted diluted earnings per share growth over the prior year quarter. - Excluding an expected increase in cash taxes paid of
$11.1 million $267.4 million $10.0 million $283.0 million
UPDATED 2025 GUIDANCE
The
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(Dollars in millions, except per share amounts) |
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2025 Outlook |
Revised 2025 Outlook |
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Diluted earnings per share excluding special items (1) |
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Net cash provided by operating activities excluding special items and |
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Cash taxes expected in 2025 (at the midpoint of Diluted earnings per |
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Net cash provided by operating activities excluding special items (1) |
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Capital improvements at existing field locations |
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Development of cemetery property |
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Digital investments and corporate |
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Total maintenance, cemetery development, and other capital |
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(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, October 30, 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 1151875. 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 November 6, 2025 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 5177797. 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
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For additional information contact: InvestorRelations@sci-us.com |
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Investors: |
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Trey Bocage - Assistant Vice President / Investor Relations |
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(713) 525-3454 |
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Andrea Low - Director / Investor Relations |
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(713) 525-2811 |
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Media: |
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Jay Andrew - Assistant Vice President / Corporate Communications |
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(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 THIRD QUARTER OF 2025
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Consolidated Statement of Operations (Unaudited) |
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(Dollars in thousands, except per share amounts) |
Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue |
$ 1,058,096 |
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$ 1,013,958 |
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$ 3,197,707 |
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$ 3,093,356 |
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Cost of revenue |
(792,553) |
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(761,319) |
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(2,369,309) |
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(2,308,589) |
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Gross profit |
265,543 |
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252,639 |
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828,398 |
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784,767 |
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Corporate general and administrative expenses |
(38,332) |
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(43,732) |
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(132,499) |
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(124,055) |
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Restructuring charge |
(405) |
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— |
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(1,980) |
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— |
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(Losses) gains on divestitures and impairment charges, net |
(415) |
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3,515 |
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8,618 |
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4,755 |
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Operating income |
226,391 |
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212,422 |
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702,537 |
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665,467 |
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Interest expense |
(65,683) |
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(65,804) |
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(191,237) |
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(194,540) |
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Losses on early extinguishment of debt |
— |
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(25) |
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— |
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(25) |
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Other income, net |
153 |
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2,815 |
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7,219 |
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7,002 |
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Income before income taxes |
160,861 |
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149,408 |
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518,519 |
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477,904 |
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Provision for income taxes |
(43,339) |
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(31,547) |
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(135,146) |
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(110,549) |
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Net income |
117,522 |
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117,861 |
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383,373 |
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367,355 |
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Net income attributable to noncontrolling interests |
(49) |
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(34) |
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(155) |
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(61) |
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Net income attributable to common stockholders |
$ 117,473 |
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$ 117,827 |
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$ 383,218 |
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$ 367,294 |
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Basic earnings per share: |
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Net income attributable to common stockholders |
$ 0.84 |
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$ 0.81 |
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$ 2.70 |
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$ 2.53 |
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Basic weighted average number of shares |
140,318 |
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144,706 |
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142,097 |
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145,421 |
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Diluted earnings per share: |
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Net income attributable to common stockholders |
$ 0.83 |
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$ 0.81 |
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$ 2.68 |
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$ 2.50 |
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Diluted weighted average number of shares |
141,424 |
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146,223 |
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143,227 |
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146,978 |
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Consolidated Balance Sheet (Unaudited) |
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(Dollars in thousands, except share amounts) |
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September 30, 2025 |
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December 31, 2024 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 241,339 |
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$ 218,766 |
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Receivables, net |
93,759 |
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94,341 |
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Inventories |
31,641 |
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33,318 |
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Income tax receivable |
18,758 |
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3,775 |
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Other |
34,219 |
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27,130 |
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Total current assets |
419,716 |
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377,330 |
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Preneed receivables, net of reserves of |
7,270,261 |
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6,739,332 |
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Cemetery property |
2,177,777 |
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2,129,404 |
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Property and equipment, net |
2,679,206 |
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2,581,069 |
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Goodwill |
2,146,617 |
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2,081,015 |
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Deferred charges and other assets, net of reserves of |
1,293,808 |
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1,317,256 |
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Cemetery perpetual care trust investments |
2,374,391 |
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2,154,032 |
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Total assets |
$ 18,361,776 |
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$ 17,379,438 |
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LIABILITIES & EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
$ 684,873 |
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$ 639,989 |
|
Current maturities of long-term debt |
67,284 |
|
83,850 |
|
Total current liabilities |
752,157 |
|
723,839 |
|
Long-term debt |
4,962,355 |
|
4,751,448 |
|
Deferred revenue, net |
1,776,500 |
|
1,755,170 |
|
Deferred tax liability |
680,428 |
|
649,195 |
|
Other liabilities |
541,343 |
|
513,480 |
|
Deferred receipts held in trust |
5,717,725 |
|
5,162,525 |
|
Care trusts' corpus |
2,363,984 |
|
2,145,112 |
|
Equity: |
|
|
|
|
Common stock, |
140,246 |
|
144,695 |
|
Capital in excess of par value |
980,594 |
|
986,830 |
|
Retained earnings |
440,061 |
|
553,701 |
|
Accumulated other comprehensive gain (loss) |
5,771 |
|
(7,221) |
|
Total common stockholders' equity |
1,566,672 |
|
1,678,005 |
|
Noncontrolling interests |
612 |
|
664 |
|
Total equity |
1,567,284 |
|
1,678,669 |
|
Total liabilities and equity |
$ 18,361,776 |
|
$ 17,379,438 |
|
Consolidated Statement of Cash Flows (Unaudited) |
|||
|
|
|||
|
(Dollars in thousands) |
Nine months ended September 30, |
||
|
|
2025 |
|
2024 |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net income |
$ 383,373 |
|
$ 367,355 |
|
Loss on early extinguishment of debt |
— |
|
25 |
|
Depreciation and amortization |
163,462 |
|
153,932 |
|
Amortization of intangibles |
12,353 |
|
12,759 |
|
Amortization of cemetery property |
73,785 |
|
70,431 |
|
Amortization of loan costs |
6,605 |
|
5,365 |
|
Provision for expected credit losses |
7,394 |
|
9,693 |
|
Provision for deferred income taxes |
32,310 |
|
15,243 |
|
Gains on divestitures and impairment charges, net |
(8,618) |
|
(4,755) |
|
Share-based compensation |
13,624 |
|
13,662 |
|
Change in assets and liabilities, net of effects from acquisitions and divestitures: |
|
|
|
|
(Increase) decrease in receivables |
(2,487) |
|
11,366 |
|
(Increase) decrease in other assets |
(18,115) |
|
12,464 |
|
Increase in payables and other liabilities |
26,006 |
|
19,148 |
|
Effect of preneed sales production and maturities: |
|
|
|
|
Increase in preneed receivables, net and trust investments |
(34,056) |
|
(139,876) |
|
Increase in deferred revenue, net |
29,994 |
|
83,331 |
|
Increase in deferred receipts held in trust |
44,230 |
|
50,652 |
|
Net cash provided by operating activities |
729,860 |
|
680,795 |
|
Cash flows from investing activities: |
|
|
|
|
Capital expenditures |
(262,818) |
|
(267,485) |
|
Business acquisitions, net of cash acquired |
(65,098) |
|
(161,865) |
|
Real estate acquisitions |
(6,610) |
|
(53,329) |
|
Corporate headquarters |
(44,942) |
|
(9,352) |
|
Proceeds from divestitures and sales of property and equipment |
28,267 |
|
21,632 |
|
Payments for Company-owned life insurance policies |
(216) |
|
(3,009) |
|
Proceeds from Company-owned life insurance policies and other |
11,433 |
|
2,673 |
|
Other investing activities |
(1,435) |
|
(13,864) |
|
Net cash used in investing activities |
(341,419) |
|
(484,599) |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of long-term debt |
655,011 |
|
1,336,137 |
|
Debt issuance costs |
— |
|
(15,246) |
|
Scheduled payments of debt |
(19,117) |
|
(18,421) |
|
Early payments and extinguishment of debt |
(490,000) |
|
(1,210,024) |
|
Proceeds from corporate headquarters debt facility |
33,533 |
|
— |
|
Principal payments on finance leases |
(28,590) |
|
(27,524) |
|
Proceeds from exercise of stock options |
20,904 |
|
42,898 |
|
Purchase of Company common stock |
(402,093) |
|
(197,511) |
|
Payments of dividends |
(135,977) |
|
(130,811) |
|
Bank overdrafts and other |
(2,548) |
|
(10,253) |
|
Net cash used in financing activities |
(368,877) |
|
(230,755) |
|
Effect of foreign currency |
3,522 |
|
(1,566) |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
23,086 |
|
(36,125) |
|
Cash, cash equivalents, and restricted cash at beginning of period |
221,399 |
|
224,761 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ 244,485 |
|
$ 188,636 |
|
Consolidated Segment Results
(See definitions of revenue line items later in this appendix.) |
|||||||
|
|
|||||||
|
|
|||||||
|
(Dollars in millions, except funeral services |
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Consolidated funeral: |
|
|
|
|
|
|
|
|
Atneed revenue |
$ 285.0 |
|
$ 289.1 |
|
$ 910.2 |
|
$ 887.8 |
|
Matured preneed revenue |
183.3 |
|
173.8 |
|
572.7 |
|
542.5 |
|
Core revenue |
468.3 |
|
462.9 |
|
1,482.9 |
|
1,430.3 |
|
Non-funeral home revenue |
26.2 |
|
23.2 |
|
79.5 |
|
69.8 |
|
Non-funeral home preneed sales revenue |
22.5 |
|
26.9 |
|
71.2 |
|
85.1 |
|
Core general agency and other revenue |
57.1 |
|
53.0 |
|
171.3 |
|
151.3 |
|
Total revenue |
$ 574.1 |
|
$ 566.0 |
|
$ 1,804.9 |
|
$ 1,736.5 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ 99.6 |
|
$ 107.9 |
|
$ 369.6 |
|
$ 340.2 |
|
Gross profit percentage |
17.3 % |
|
19.1 % |
|
20.5 % |
|
19.6 % |
|
|
|
|
|
|
|
|
|
|
Funeral services performed |
84,636 |
|
85,743 |
|
269,504 |
|
266,140 |
|
Average revenue per service |
$ 5,843 |
|
$ 5,669 |
|
$ 5,797 |
|
$ 5,637 |
|
|
|||||||
|
(Dollars in millions) |
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Consolidated cemetery: |
|
|
|
|
|
|
|
|
Atneed property revenue |
$ 35.9 |
|
$ 34.7 |
|
$ 110.1 |
|
$ 105.0 |
|
Atneed merchandise and service revenue |
71.6 |
|
72.3 |
|
220.7 |
|
219.4 |
|
Total atneed revenue |
107.5 |
|
107.0 |
|
330.8 |
|
324.4 |
|
Recognized preneed property revenue |
228.6 |
|
203.4 |
|
637.7 |
|
628.2 |
|
Recognized preneed merchandise and service |
109.9 |
|
103.6 |
|
314.3 |
|
301.8 |
|
Total recognized preneed revenue |
338.5 |
|
307.0 |
|
952.0 |
|
930.0 |
|
Core revenue |
446.0 |
|
414.0 |
|
1,282.8 |
|
1,254.4 |
|
Other cemetery revenue |
38.0 |
|
34.0 |
|
110.0 |
|
102.5 |
|
Total revenue |
$ 484.0 |
|
$ 448.0 |
|
$ 1,392.8 |
|
$ 1,356.9 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ 165.9 |
|
$ 144.8 |
|
$ 458.8 |
|
$ 444.6 |
|
Gross profit percentage |
34.3 % |
|
32.3 % |
|
32.9 % |
|
32.8 % |
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended September 30, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending September 30, 2025.
|
(Dollars in millions, except average revenue per service and average |
Three months ended September 30, |
||||||
|
|
2025 |
|
2024 |
|
Var |
|
% |
|
Comparable funeral revenue: |
|
|
|
|
|
|
|
|
Atneed revenue (1) |
$ 274.7 |
|
$ 284.9 |
|
$ (10.2) |
|
(3.6) % |
|
Matured preneed revenue (2) |
179.5 |
|
172.6 |
|
6.9 |
|
4.0 % |
|
Core revenue (3) |
454.2 |
|
457.5 |
|
(3.3) |
|
(0.7) % |
|
Non-funeral home revenue (4) |
26.0 |
|
23.1 |
|
2.9 |
|
12.6 % |
|
Non-funeral home preneed sales revenue (5) |
22.3 |
|
26.9 |
|
(4.6) |
|
(17.1) % |
|
Core general agency and other revenue (6) |
56.0 |
|
52.9 |
|
3.1 |
|
5.9 % |
|
Total comparable revenue |
$ 558.5 |
|
$ 560.4 |
|
$ (1.9) |
|
(0.3) % |
|
|
|
|
|
|
|
|
|
|
Comparable gross profit |
$ 98.0 |
|
$ 107.5 |
|
$ (9.5) |
|
(8.8) % |
|
Comparable gross profit percentage |
17.5 % |
|
19.2 % |
|
(1.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable funeral services performed: |
|
|
|
|
|
|
|
|
Atneed |
42,455 |
|
45,193 |
|
(2,738) |
|
(6.1) % |
|
Matured preneed |
25,467 |
|
25,214 |
|
253 |
|
1.0 % |
|
Total core |
67,922 |
|
70,407 |
|
(2,485) |
|
(3.5) % |
|
Non-funeral home |
14,135 |
|
14,238 |
|
(103) |
|
(0.7) % |
|
Total comparable funeral services performed |
82,057 |
|
84,645 |
|
(2,588) |
|
(3.1) % |
|
Comparable core cremation rate |
57.3 % |
|
56.8 % |
|
0.5 % |
|
|
|
Total comparable cremation rate (7) |
64.4 % |
|
63.9 % |
|
0.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable funeral average revenue per service: |
|
|
|
|
|
|
|
|
Atneed |
$ 6,470 |
|
$ 6,304 |
|
$ 166 |
|
2.6 % |
|
Matured preneed |
7,048 |
|
6,845 |
|
203 |
|
3.0 % |
|
Total core |
6,687 |
|
6,498 |
|
189 |
|
2.9 % |
|
Non-funeral home |
1,839 |
|
1,622 |
|
217 |
|
13.4 % |
|
Total comparable average revenue per service |
$ 5,852 |
|
$ 5,678 |
|
$ 174 |
|
3.1 % |
|
|
|
|
|
|
|
|
|
|
Comparable funeral preneed sales production: |
|
|
|
|
|
|
|
|
Total preneed sales |
$ 300.2 |
|
$ 294.5 |
|
$ 5.7 |
|
1.9 % |
|
Core contracts sold |
36,224 |
|
34,745 |
|
1,479 |
|
4.3 % |
|
Non-funeral home contracts sold |
18,400 |
|
23,339 |
|
(4,939) |
|
(21.2) % |
|
Core average revenue per contract sold |
$ 6,712 |
|
$ 6,437 |
|
$ 275 |
|
4.3 % |
|
Non-funeral home average revenue per contract sold |
$ 3,101 |
|
$ 3,035 |
|
$ 66 |
|
2.2 % |
|
|
|
|
(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
$1.9 million - Core funeral revenue decreased
$3.3 million 0.7% , due to a3.5% decrease in core funeral services performed, partially offset by a2.9% increase in core average revenue per service. The core cremation rate increased slightly by 50 basis points to57.3% . - Non-funeral home revenue increased
$2.9 million 13.4% increase in non-funeral home average revenue per service partially offset by a0.7% decrease in non-funeral home services performed. - Non-funeral home preneed sales revenue decreased
$4.6 million - Core general agency and other revenue grew
$3.1 million 8.7% increase in core production primarily driven by higher preneed insurance production. - Comparable funeral gross profit decreased
$9.5 million $98.0 million 19.2% to17.5% . This is primarily due to a$6.0 million $47.1 million - Comparable funeral preneed sales production increased
$5.7 million 1.9% , in the third quarter of 2025 compared to 2024. Core preneed sales production increased$19.5 million 8.7% . We experienced an expected improvement in insurance production as our sales force has transitioned to our new provider over time. Non-funeral home preneed sales production decreased$13.8 million 19.5% , 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 September 30, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending September 30, 2025.
|
(Dollars in millions) |
Three months ended September 30, |
||||||
|
|
2025 |
|
2024 |
|
Var |
|
% |
|
Comparable cemetery revenue: |
|
|
|
|
|
|
|
|
Atneed property revenue |
$ 35.7 |
|
$ 34.6 |
|
$ 1.1 |
|
3.2 % |
|
Atneed merchandise and service revenue |
71.2 |
|
72.1 |
|
(0.9) |
|
(1.2) % |
|
Total atneed revenue (1) |
106.9 |
|
106.7 |
|
0.2 |
|
0.2 % |
|
Recognized preneed property revenue |
224.6 |
|
203.3 |
|
21.3 |
|
10.5 % |
|
Recognized preneed merchandise and service revenue |
109.5 |
|
103.5 |
|
6.0 |
|
5.8 % |
|
Total recognized preneed revenue (2) |
334.1 |
|
306.8 |
|
27.3 |
|
8.9 % |
|
Core revenue (3) |
441.0 |
|
413.5 |
|
27.5 |
|
6.7 % |
|
Other revenue (4) |
37.6 |
|
34.1 |
|
3.5 |
|
10.3 % |
|
Total comparable revenue |
$ 478.6 |
|
$ 447.6 |
|
$ 31.0 |
|
6.9 % |
|
|
|
|
|
|
|
|
|
|
Comparable gross profit |
$ 162.8 |
|
$ 144.8 |
|
$ 18.0 |
|
12.4 % |
|
Comparable gross profit percentage |
34.0 % |
|
32.4 % |
|
1.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable cemetery preneed and atneed sales production: |
|
|
|
|
|
|
|
|
Property |
$ 250.8 |
|
$ 233.2 |
|
$ 17.6 |
|
7.5 % |
|
Merchandise and services |
203.3 |
|
187.3 |
|
16.0 |
|
8.5 % |
|
Discounts and other |
(4.3) |
|
— |
|
(4.3) |
|
— % |
|
Preneed and atneed sales production |
$ 449.8 |
|
$ 420.5 |
|
$ 29.3 |
|
7.0 % |
|
|
|
|
|
|
|
|
|
|
Preneed sales production |
$ 345.6 |
|
$ 315.3 |
|
$ 30.3 |
|
9.6 % |
|
Recognition rate (5) |
98.0 % |
|
98.3 % |
|
|
|
|
|
|
|
|
(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
$31.0 million 6.9% , in the third quarter of 2025 compared to the third quarter of 2024. The increase was due to higher core revenue of$27.5 million $3.5 million - The core revenue increase of
$27.5 million $27.3 million 8.9% , increase in total recognized preneed revenue, of which$21.3 million $6.0 million $30.3 million 9.6% . - Comparable cemetery gross profit increased
$18.0 million $162.8 million 32.4% to34.0% , primarily due to the growth in core revenue mentioned above.
Other Financial Results
- Corporate general and administrative expenses were
$38.3 million $5.4 million - The GAAP effective income tax rate for the third quarter of 2025 was
26.9% , up from21.1% in the prior year quarter. On an adjusted basis, the effective tax rate was24.1% , up from20.9% in the prior year quarter. The higher GAAP rate reflects a change in estimate of$4.5 million
|
Cash Flow and Capital Spending |
|||||||
|
|
|||||||
|
(Dollars in millions) |
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net cash provided by operating activities |
$ 252.3 |
|
$ 263.8 |
|
$ 729.9 |
|
$ 680.8 |
|
Legal settlement payments |
— |
|
5.2 |
|
0.4 |
|
28.2 |
|
Restructuring charge payments |
15.6 |
|
— |
|
21.5 |
|
— |
|
Net cash provided by operating activities excluding |
$ 267.9 |
|
$ 269.0 |
|
$ 751.8 |
|
$ 709.0 |
|
Cash taxes included in net cash provided by |
$ 15.1 |
|
$ 4.0 |
|
$ 114.3 |
|
$ 15.8 |
Net cash provided by operating activities was
|
(Dollars in millions) |
Three months ended September 30, |
|
Nine months ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Capital improvements at existing field locations |
$ 34.9 |
|
$ 37.0 |
|
$ 84.7 |
|
$ 91.4 |
|
Development of cemetery property |
45.0 |
|
43.8 |
|
121.1 |
|
122.4 |
|
Digital investments and corporate |
6.1 |
|
3.2 |
|
16.0 |
|
22.7 |
|
Total maintenance, cemetery development, and |
$ 86.0 |
|
$ 84.0 |
|
$ 221.8 |
|
$ 236.5 |
|
Growth capital expenditures/construction of new |
15.6 |
|
12.5 |
|
41.0 |
|
31.0 |
|
Total capital expenditures |
$ 101.6 |
|
$ 96.5 |
|
$ 262.8 |
|
$ 267.5 |
Total capital expenditures increased 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 September 30, 2025 is set forth below:
|
|
|
Three Months |
|
Nine Months |
|
Preneed funeral |
|
4.7 % |
|
12.7 % |
|
Preneed cemetery |
|
5.0 % |
|
13.4 % |
|
Cemetery perpetual care |
|
4.7 % |
|
12.7 % |
|
Combined trust funds |
|
4.8 % |
|
13.0 % |
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 September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net income attributable to common stockholders, as reported |
$ 117.5 |
|
$ 0.83 |
|
$ 117.8 |
|
$ 0.81 |
|
Pre-tax reconciling items: |
|
|
|
|
|
|
|
|
Losses (gains) on divestitures and impairment charges, net |
0.4 |
|
— |
|
(3.5) |
|
(0.02) |
|
Restructuring charge |
0.4 |
|
— |
|
— |
|
— |
|
Tax reconciling items: |
|
|
|
|
|
|
|
|
Tax effect from significant items |
(0.1) |
|
0.01 |
|
1.1 |
|
— |
|
Change in non-recurring tax items |
4.5 |
|
0.03 |
|
(0.1) |
|
— |
|
Earnings excluding special items and diluted earnings per share excluding special items |
$ 122.7 |
|
$ 0.87 |
|
$ 115.3 |
|
$ 0.79 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
|
141.4 |
|
|
|
146.2 |
|
(Dollars in millions, except diluted EPS) |
Nine months ended September 30, |
||||||
|
|
2025 |
|
2024 |
||||
|
|
Net Income |
|
Diluted EPS |
|
Net Income |
|
Diluted EPS |
|
Net income attributable to common stockholders, as reported |
$ 383.2 |
|
$ 2.68 |
|
$ 367.3 |
|
$ 2.50 |
|
Pre-tax reconciling items: |
|
|
|
|
|
|
|
|
Gains on divestitures and impairment charges, net |
(8.6) |
|
(0.06) |
|
(4.8) |
|
(0.03) |
|
Legal settlement |
6.4 |
|
0.04 |
|
— |
|
— |
|
Restructuring charge |
2.0 |
|
0.01 |
|
— |
|
— |
|
Tax reconciling items: |
|
|
|
|
|
|
|
|
Tax effect from significant items |
0.3 |
|
0.01 |
|
1.6 |
|
— |
|
Change in non-recurring tax items |
4.5 |
|
0.03 |
|
(1.0) |
|
— |
|
Earnings excluding special items and diluted earnings per share excluding special items |
$ 387.8 |
|
$ 2.71 |
|
$ 363.1 |
|
$ 2.47 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
|
143.2 |
|
|
|
147.0 |
View original content:SOURCE Service Corporation International
FAQ
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