SERVICE CORPORATION INTERNATIONAL ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND PROVIDES 2026 GUIDANCE

Conference call on Thursday, February 12, 2026, at 8:00 a.m. Central Time.

HOUSTON, Feb. 11, 2026 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the fourth quarter of 2025.

Highlights:

• Revenue increased $19 million, or 2%, over the fourth quarter of 2024 with growth in both the funeral and cemetery segments, resulting in a full year revenue increase of $123 million, or 3%, over the prior year
• Gross profit increased $6 million, or 2%, over the fourth quarter of 2024, with full year gross profit increasing $49 million, or 5%, over the prior year
• Comparable preneed funeral sales production grew 11% over the fourth quarter of 2024
• Comparable total funeral sales average grew 3% over the fourth quarter of 2024
• Comparable preneed cemetery sales production grew 2% over the fourth quarter of 2024, with a full year increase of $48 million, or 4%, over the prior year
• GAAP diluted earnings per share of $1.13 grew 9% over the fourth quarter of 2024 and GAAP diluted earnings per share of $3.80 grew 8% for the full year over prior year
• Adjusted earnings per share of $1.14 grew 8% over the fourth quarter of 2024 and adjusted earnings per share of $3.85 grew 9% for the full year over prior year
• GAAP operating cash flow was $943 million for the full year of 2025 compared to $945 million for the full year of 2024
• Adjusted operating cash flow was $966 million for the full year of 2025 compared to $967 million for the full year of 2024
• Excluding cash taxes and special items in both years, year to date net cash provided by operating activities increased $108 million, or 11%, to $1,106 million compared to $998 million in the prior year

Tom Ryan, the Company's Chairman and Chief Executive Officer, commented on fourth quarter results:

"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. This robust cash generation enabled disciplined capital deployment toward strategic acquisitions, development of cemetery property, real estate purchases, and construction of new funeral homes, while returning $645 million to shareholders through dividends and share repurchases. Our acquisition spend included $101 million for 22 funeral homes and 2 cemeteries in major metropolitan markets, and we invested approximately $79 million toward real estate, new construction, and facility expansions.

Looking ahead to 2026, we believe we are well positioned to deliver continued earnings momentum, with the midpoint of our expected adjusted earnings per share growth within our long-term target range of 8% to 12%. I would like to thank our more than 25,000 associates for their unwavering commitment to serving client families. Their dedication supports our financial strength and provides the flexibility to execute our long-term growth strategy of driving revenue, leveraging our unmatched scale, and allocating capital to enhance shareholder value."

FOURTH QUARTER AND FULL YEAR SUMMARY

Details of our fourth quarter 2025 financial results and the consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.

• Diluted earnings per share was $1.13 in the fourth quarter of 2025 compared to $1.04 in the fourth quarter of 2024. The prior year was impacted by $17.2 million of net losses on divestitures and impairment charges and $11.5 million of restructuring charges. These charges were offset by a $20.3 million reduction in our California legal reserve in the prior year which was included in corporate general and administrative expenses. Diluted earnings per share excluding special items, was $1.14 in the fourth quarter of 2025 compared to $1.06 in the fourth quarter of 2024. Higher operating profit and lower share count resulted in 8% growth over the prior year fourth quarter.
• Net cash provided by operating activities decreased $51.2 million to $212.9 million in the fourth quarter of 2025 compared to $264.1 million in the fourth quarter of 2024. Excluding special items, net cash provided by operating activities decreased $54.4 million primarily due to expected higher cash interest of $24.2 million and higher cash taxes of $20.7 million.

OUTLOOK FOR 2026

Our 2026 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%.

CONFERENCE CALL AND WEBCAST

We will host a conference call on Thursday, February 12, 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 4533133. 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 February 19, 2026 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of  9599804. Additionally, a replay of the conference call will be available on our website for approximately one year.

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 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 December 31, 2025, we owned and operated 1,485 funeral service locations and 500 cemeteries (of which 312 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.

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," "plan," "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.
• 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.
• 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. 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, except as required by law.

SERVICE CORPORATION INTERNATIONAL

APPENDIX: RESULTS FOR THE FOURTH QUARTER OF 2025

Comparable Funeral Results

The table below details comparable funeral results of operations ("same store") for the three months ended December 31, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending December 31, 2025.

• Total comparable funeral revenue increased $3.0 million, or 0.5%, primarily driven by a $5.7 million increase in core funeral revenue, a $3.0 million increase in non-funeral home revenue and a $2.2 million increase in non-funeral home preneed sales revenue, partially offset by a $7.9 million decrease in core general agency and other revenue.
• The increase in core funeral revenue of $5.7 million, or 1.2%, was primarily due to a 3.2% growth in the core average revenue per service partially offset by a 1.9% decrease in core funeral services performed. This core average growth was achieved despite a modest increase of 30 basis points in the core cremation rate to 57.8%.
• Non-funeral home revenue increased $3.0 million due to an 11.4% increase in non-funeral home average revenue per service and a 0.7% increase in non-funeral home services performed.
• Non-funeral home preneed sales revenue increased $2.2 million, or 11.3%, primarily due to growth in non-funeral home preneed sales production of $4.2 million, or 7.9%. This growth led to higher non-funeral home general agency revenue as we shifted more production from trust to insurance-funded contracts.
• Core general agency and other revenue declined $7.9 million or 12.8%. Core general agency revenue benefitted from higher sales production but was more than offset by a lower general agency commission rate quarter over quarter. The current commission rate has now stabilized and is trending in line with expectations.
• Comparable funeral gross profit decreased $3.6 million to $123.0 million, and the gross profit percentage decreased 70 basis points to 21.2% from 21.9%. Increases in revenue were more than offset by higher selling compensation costs of $5.4 million. These higher costs resulted primarily from an 11.0% increase in comparable preneed funeral sales production coupled with an operational shift from variable to fixed compensation for core preneed funeral sales counselors. Fixed selling compensation is expensed as incurred.
• Comparable preneed funeral sales production increased $29.2 million, or 11.0%, in the fourth quarter of 2025 compared to 2024. Core preneed sales production increased $25.0 million, or 11.8%. Non-funeral home preneed sales production increased $4.2 million, or 7.9%. We experienced an increase in insurance production, as both our core and non-funeral home sales forces have fully transitioned to our new insurance provider.

Comparable Cemetery Results

The table below details comparable cemetery results of operations ("same store") for the three months ended December 31, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending December 31, 2025.

• Comparable cemetery revenue increased $4.7 million, or 0.9%, primarily due to higher other revenue of $8.0 million offset by lower core revenue of $3.3 million.
• Core revenue decreased $3.3 million driven by a $2.9 million decline in atneed revenue and relatively flat recognized preneed revenue. While recognized preneed merchandise and service revenue increased $5.7 million, this was offset by a $6.1 million decrease in recognized preneed property revenue primarily related to the timing of revenue recognition on newly constructed property versus the prior year quarter.
• Other revenue was higher by $8.0 million, or 24.9%, compared to the prior year quarter primarily from an increase in endowment care trust fund income.
• Comparable cemetery gross profit increased $5.3 million to $185.2 million. The gross profit percentage increased 70 basis points to 36.4% from 35.7% primarily due to the higher revenue mentioned above, coupled with effective cost management.
• Comparable preneed cemetery sales production increased $8.0 million, or 2.2%, and was positively impacted by an increase in the number of contracts sold. This increase was partially offset by a decrease in large property sales.

Other Financial Results

• Corporate general and administrative expenses increased $18.7 million to $33.7 million compared to $15.0 million in the prior year fourth quarter. In the prior year fourth quarter, we recognized a $20.3 million reduction in our California legal reserve. Adjusting for the $20.3 million, corporate general and administrative expenses declined $1.6 million primarily due to net improved self-insured claims experience as compared to the prior year.
• Interest expense increased $0.9 million to $64.1 million in the fourth quarter of 2025 primarily due to higher weighted average balances, partially offset by a lower average rate on floating rate debt.
• The GAAP effective income tax rate for the fourth quarter of 2025 was 24.5% up from 23.3% in the prior year quarter. The lower rate in the prior year quarter was attributable to state legislative changes and reductions in uncertain tax positions in the prior year quarter. Our adjusted effective income tax rate was 24.8% in the fourth quarter of 2025 and 2024.

Cash Flow and Capital Spending

Net cash provided by operating activities decreased $51.2 million to $212.9 million in the fourth quarter of 2025 compared to $264.1 million in the fourth quarter of 2024. Excluding special items, net cash provided by operating activities decreased $54.4 million primarily due to expected higher cash interest of $24.2 million and higher cash taxes of $20.7 million. Higher operating income of $13.3 million was more than offset by a net $22.8 million use of other working capital largely due to the timing of funding payroll quarter over quarter. The higher cash interest was primarily due to the timing of interest payments and the reduction of our bank credit facility, both of which were associated with our September 2024 bond financing.

A summary of our capital expenditures is set forth below:

Total capital expenditures increased $19.5 million in the current quarter. There was an expected $8.3 million increase in spend on capital improvements at existing field locations, which brought the year to date spend in line with prior year. In addition, there was an $8.7 million increase in spend on growth capital expenditures primarily related to construction of new funeral homes during the quarter.

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 December 31, 2025 is set forth below:

Non-GAAP Financial Measures

Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities 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 by adjusting for the items listed below. 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. See "Cash Flow and Capital Spending" in this press release for a reconciliation of net cash provided by operating activities to net cash provided by operating activities 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.

SOURCE Service Corporation International