Service Corporation International (SCI) reported first‑quarter 2026 revenue of $1,096.5 million, up 2.1% from $1,074.2 million in Q1 2025. Adjusted earnings per share were $0.97, falling short of the consensus estimate of $1.01 by $0.04, a miss of 4.4%.
Comparable funeral service volumes declined 6% year‑over‑year, driven by a normalization after a strong flu season. In contrast, pre‑need funeral sales production rose 6% and cemetery sales production grew 10%, reflecting robust demand for cemetery and pre‑need services.
Funeral gross margin compressed 300 basis points to 21.4% due to lower volumes against high fixed costs, while cemetery gross profit margin improved 120 basis points to 32.8% thanks to higher core and other revenue and endowment care trust fund income.
Operating expenses increased only 1% year‑over‑year, underscoring disciplined cost management amid volume headwinds.
SCI reaffirmed its 2026 diluted EPS guidance of $4.05 to $4.35, unchanged from the prior quarter, signaling confidence in navigating a flat‑to‑slightly‑down volume environment while pursuing margin expansion through operational efficiencies and a higher‑value contract mix.
CEO and Chairman Thomas Ryan said, "For the first quarter, we generated adjusted earnings per share of $0.97, which compared to $0.96 in the prior year." He added, "Cemetery revenue and gross profit increased meaningfully, supported by double‑digit growth in preneed cemetery sales production."
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