Service Corporation International reported fourth‑quarter 2025 results that included revenue of $1.1115 billion, a 2% year‑over‑year increase that fell short of the $1.12 billion consensus estimate. The shortfall was driven by a modest decline in comparable funeral revenue, which offset growth in the preneed funeral and cemetery sales production that rose 6%.
Adjusted earnings per share for the quarter were $1.14, matching the consensus estimate of $1.14 and representing an 8% increase from the prior year’s $1.06 per share. The beat was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin cemetery services, which helped offset the slight decline in funeral revenue. The company’s operating income rose to $275.6 million, and net income attributable to common shareholders reached $159.4 million, reflecting a 9% rise in full‑year adjusted EPS to $3.85.
Management highlighted that the company’s capital deployment strategy—acquisitions, cemetery development, and share repurchases—continues to support shareholder value while maintaining a disciplined balance sheet. "We delivered a strong finish to the year, highlighted by fourth quarter 2025 adjusted earnings per share growth of 8%. Solid top‑line performance across both operating segments drove gross profit expansion. During the quarter, we delivered combined preneed funeral and cemetery sales production growth of 6% and saw continued improvement in the average funeral revenue per service. For the full year, adjusted earnings per share increased 9% to $3.85, and we generated $966 million in adjusted operating cash flow," said Chairman and CEO Tom Ryan.
The company reiterated its 2026 guidance, projecting adjusted EPS between $4.05 and $4.35, a midpoint that aligns with its long‑term target range of 8%‑12% growth. The guidance is slightly below the analyst consensus of $4.25‑$4.26, reflecting a cautious outlook amid a revenue miss and modest headwinds in the funeral segment. The guidance signals confidence in continued growth from preneed sales and cemetery development, while acknowledging the need to manage cost pressures and competitive dynamics in the funeral market.
The market reacted negatively to the results, with the stock falling 6.73% in the latest trading session and 2.9% in after‑hours trading. The decline was driven by the revenue miss and the guidance that fell short of analyst expectations, underscoring investor sensitivity to any deviation from the consensus in a company that has historically delivered strong earnings. The company’s leverage ratio of 3.61x and liquidity of $1.5 billion position it to fund strategic acquisitions and return cash to shareholders through dividends and buybacks, reinforcing its status as North America’s leading death‑care provider.
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