HOUSTON, April 29, 2026 /PRNewswire/ -- Service Corporation International (NYSE:SCI), the largest provider of deathcare products and services in North America, today reported results for the first quarter of 2026.
First Quarter Highlights:
Revenue grew $22.3 million, or 2%, over the first quarter of 2025
Comparable cemetery preneed sales production increased 10% in the current quarter
Comparable total funeral sales average grew 3% over the first quarter of 2025
Comparable funeral preneed sales production increased 6% in the current quarter
GAAP earnings per share was $0.97 compared to $0.98 in the first quarter of 2025
Adjusted earnings per share was $0.97 compared to $0.96 in the first quarter of 2025
Net cash provided by operating activities increased $22.7 million, or 7% to $333.8 million in the current quarter compared to $311.1 million in the prior year quarter
Adjusted cash provided by operating activities increased $18.5 million, or 6%, to $334.5 million in the current quarter compared to $316.0 million in the prior year
Tom Ryan, the Company's Chairman and CEO, commented on the first quarter performance:
"Today, we reported adjusted earnings per share of $0.97 and net cash provided by operating activities of $333.8 million. Comparable funeral service volumes declined 6% year-over-year, reflecting the impact of a particularly strong prior year flu season and aligning with broader demographic trends. Despite this, the Company delivered solid underlying performance driven by a resilient average revenue per service and disciplined cost management, with expenses increasing approximately 1% year-over-year. In addition, preneed funeral sales production remained strong, increasing 6% for the period.
In our cemetery segment, we delivered a strong performance, highlighted by 10% growth in comparable preneed cemetery sales production. This higher production drove 7% growth in comparable cemetery revenue and a 120 basis point improvement in cemetery gross profit.
We remain focused on executing our long-term growth strategy—growing revenue, leveraging our scale, and allocating capital in a disciplined way to enhance shareholder value. While funeral volumes may continue to fluctuate in the near term, they have historically been stable over the longer-term. Overall, we are proud of how our teams executed in what was a challenging operating environment.
I would like to thank our 25,000 associates for their unwavering commitment to serving client families with care and excellence that have made these results possible."
Details of our first quarter 2026 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.
(Dollars in millions, except for per share amounts)
Three months ended March 31,
2026
2025
Revenue
$ 1,096.5
$ 1,074.2
Operating income
$ 243.8
$ 251.7
Net income attributable to common stockholders
$ 135.8
$ 142.9
Diluted earnings per share
$ 0.97
$ 0.98
Earnings excluding special items (1)
$ 135.3
$ 139.6
Diluted earnings per share excluding special items (1)
$ 0.97
$ 0.96
Diluted weighted average shares outstanding
139.9
145.3
Net cash provided by operating activities
$ 333.8
$ 311.1
Net cash provided by operating activities excluding special items (1)
$ 334.5
$ 316.0
(1)
Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release.
Diluted earnings per share was $0.97 in the first quarter of 2026 compared to $0.98 in the first quarter of 2025. The current year quarter was impacted by $1.3 million of net gains on divestitures and impairment charges compared to $5.0 million in the prior year. Diluted earnings per share, excluding special items, was $0.97 in the first quarter of 2026 compared to $0.96 in the first quarter of 2025. Higher cemetery gross profit combined with a lower share count and a favorable tax rate slightly offset lower funeral gross profit resulting from a decline in funeral services performed during the quarter.
Net cash provided by operating activities increased $22.7 million, or 7%, to $333.8 million. Adjusted cash provided by operating activities increased $18.5 million, or 6%, to $334.5 million in the current quarter compared to $316.0 million in the prior year due to favorable changes in working capital.
OUTLOOK FOR 2026
Our annual guidance ranges for 2026 detailed below have not changed and are consistent with our previously reported outlook for 2026. Our outlook for diluted earnings per share excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.
(Dollars in millions, except per share amounts)
2026 Outlook
Diluted earnings per share excluding special items (1)
$4.05 - $4.35
Net cash provided by operating activities excluding special items and cash taxes (1)
$1,125 - $1,185
Cash taxes expected in 2026 (at the midpoint of diluted earnings per share excluding specialitems guidance)
$120
Net cash provided by operating activities excluding special items (1)
$1,005 - $1,065
Capital improvements at existing field locations
$135
Development of cemetery property
$165
Digital investments and corporate
$25
Total maintenance, cemetery development, and other capital expenditures (Maintenance capitalexpenditures)
$325
(1)
Diluted earnings per share excluding special items, net cash provided by operating activities excluding special items and cash taxes, and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2026 excludes the following because this information is not currently available for 2026: Expenses net of insurance recoveries related to hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP, consistent with the historical disclosures found in the Appendix at the end of this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures".
CONFERENCE CALL AND WEBCAST
We will host a conference call on Thursday, April 30, 2026, at 8:00 a.m. Central Time. A question and answer session will follow prepared remarks made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 4888435. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through May 7, 2026 and can be accessed at (855) 669-9658 (US) or (412) 317-0088 (International) with the passcode of 1806799. Additionally, a replay of the conference call will be available on our website for approximately three months.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE:SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 combined preneed and atneed families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2026, we owned and operated 1,487 funeral service locations and 503 cemeteries (of which 314 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact: [email protected]
Investors:
Trey Bocage - Assistant Vice President - Treasury and Investor Relations
(713) 525-3454
Andrea Low - Director - Federal Tax and Investor Relations
(713) 525-2811
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", or "anticipate", "predict" that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. These factors are discussed below. Except as required by applicable law, we assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.
Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.
We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
We may be adversely affected by the effects of inflation.
Our results may be adversely affected by significant weather events, natural disasters, catastrophic events, or public health crises.
Our credit agreements contain covenants that may prevent us from engaging in certain transactions.
If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.
The financial condition of third-party insurance companies that fund our preneed contracts may impact our future revenue.
Unfavorable publicity could affect our reputation and business.
Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition.
We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
Any failure to protect personal information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.
A failure of a key information technology system or process could disrupt and adversely affect our business.
Our Canadian business exposes us to operational, economic, and currency risks.
Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.
The funeral and cemetery industry is competitive.
If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.
The continuing upward trend in life expectancy and an increase in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.
Our funeral and cemetery businesses are high fixed-cost businesses.
Risks associated with our supply chain, such as tariffs, could materially adversely affect our financial performance.
Regulation and compliance could have a material adverse impact on our financial results.
Unfavorable results of litigation could have a material adverse impact on our financial statements.
Cemetery burial practice claims could have a material adverse impact on our financial results.
The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.
Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com.
SERVICE CORPORATION INTERNATIONALAPPENDIX: RESULTS FOR THE FIRST QUARTER OF 2026
Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025
Revenue
$ 1,096,454
$ 1,074,167
Cost of revenue
(810,003)
(782,750)
Gross profit
286,451
291,417
Corporate general and administrative expenses
(43,911)
(44,701)
Gains on divestitures and impairment charges, net
1,274
4,971
Operating income
243,814
251,687
Interest expense
(64,006)
(61,483)
Other income, net
1,398
3,152
Income before income taxes
181,206
193,356
Provision for income taxes
(45,333)
(50,429)
Net income
135,873
142,927
Net income attributable to noncontrolling interests
(65)
(47)
Net income attributable to common stockholders
$ 135,808
$ 142,880
Basic earnings per share:
Net income attributable to common stockholders
$ 0.98
$ 0.99
Basic weighted average number of shares
139,025
144,116
Diluted earnings per share:
Net income attributable to common stockholders
$ 0.97
$ 0.98
Diluted weighted average number of shares
139,928
145,292
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands, except share amounts)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 257,959
$ 243,581
Receivables, net of reserves of $3,725 and $3,944, respectively
100,255
100,415
Inventories
38,414
35,246
Income tax receivable
22,202
4,999
Other
28,912
27,552
Total current assets
447,742
411,793
Preneed receivables, net of reserves of $34,639 and $34,680, respectively, andtrust investments
7,264,446
7,360,793
Cemetery property
2,226,549
2,201,967
