Carriage Services, Inc. (NYSE: CSV) reported its fourth‑quarter and full‑year 2025 results on February 25, 2026. Total revenue rose 9.6% to $105.5 million, driven by a 9.6% increase in funeral operating revenue and an 18.4% jump in cemetery operating revenue, largely from strong preneed sales. Adjusted consolidated EBITDA grew 11.0% year‑over‑year to $32.5 million, and the adjusted EBITDA margin expanded 80 basis points to 30.8%. The company’s full‑year 2025 adjusted diluted earnings per share came in at $0.75, missing consensus estimates of $0.80–$0.814 by $0.05, a shortfall of roughly 6–7%.
The revenue gains were concentrated in the funeral and cemetery segments. Funeral operating revenue increased due to higher contract volume, while cemetery revenue benefited from a robust preneed sales program that added significant new business. Management noted that “total funeral operating revenue increased by 9.6%, primarily reflecting growth in funeral operating contract volume, while total cemetery operating revenue grew 18.4%, primarily driven by a strong performance in preneed cemetery sales production.”
Margin expansion to 30.8% reflects both pricing power and disciplined cost management. The 80‑basis‑point lift in EBITDA margin indicates that the company was able to translate revenue growth into higher profitability, despite the broader industry’s cost pressures. The company’s operating income grew 16.8% year‑over‑year, supporting the margin improvement. Management added that “operating income grew 16.8% and adjusted consolidated EBITDA grew by 11.0%, while adjusted consolidated EBITDA margin grew by 80 bps to 30.8%, all versus the same quarter last year.”
The EPS miss of $0.05 per share, about 6–7% below consensus, can be attributed to higher operating expenses relative to revenue growth. While the company achieved a revenue beat, the cost side outpaced the top‑line gains, leading to a modest earnings shortfall. This outcome underscores the importance of continued cost discipline as the company scales its operations. Management acknowledged the miss by stating, “Importantly, our results reflect a renewed focus on service excellence, empowering our teams to deliver premier experiences while driving sustainable performance.”
Carriage Services completed two strategic acquisitions that added more than $15 million in annual revenue, reinforcing its growth trajectory. The company maintained a 4.0‑times leverage ratio, reflecting a disciplined approach to debt reduction. Management emphasized that “we are thrilled to reengage in acquisitions as part of our long‑term growth strategy. This milestone marks the first step toward realizing our 2030 Vision and reinforces our commitment to purposeful growth.”
For 2026, the company guided for full‑year revenue of $440 million to $450 million and adjusted diluted EPS of $3.35 to $3.55. The guidance, which is higher than analyst expectations, signals confidence in continued demand and operational efficiency. The company’s focus on service excellence, strategic acquisitions, and debt reduction positions it well for disciplined growth in the coming year.
The market reaction to the earnings release was muted, reflecting the balance of a revenue beat and an EPS miss. Analysts noted the company’s strong top‑line performance but cautioned that the earnings shortfall highlights the need for ongoing cost control as the business expands.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.