SERVICE CORPORATION INTERNATIONAL ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS AND CONFIRMS 2026 GUIDANCE
Conference call on Thursday, April 30, 2026, at 8:00 a.m. Central Time.
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:
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.
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 special
items 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 capital
expenditures)
$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.
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 INTERNATIONAL
APPENDIX: 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, and
trust investments
7,264,446
7,360,793
Cemetery property
2,226,549
2,201,967
Property and equipment, net
2,790,176
2,751,761
Goodwill
2,173,354
2,169,055
Deferred charges and other assets, net of reserves of $2,636 and $2,460,
respectively
1,307,041
1,360,530
Cemetery perpetual care trust investments
2,365,441
2,398,613
Total assets
$ 18,574,749
$ 18,654,512
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 728,493
$ 685,156
Current maturities of long-term debt
57,300
56,847
Income taxes payable
4,805
3,701
Total current liabilities
790,598
745,704
Long-term debt
5,105,516
5,082,970
Deferred revenue, net
1,799,576
1,779,266
Deferred tax liability
698,346
691,033
Other liabilities
543,820
550,793
Deferred receipts held in trust
5,709,204
5,784,398
Care trusts' corpus
2,342,740
2,381,507
Commitments and contingencies
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized,
142,215,508 and 141,957,004 shares issued, respectively, and 138,147,494 and
139,678,199 shares outstanding, respectively
138,147
139,678
Capital in excess of par value
981,975
987,210
Retained earnings
458,980
498,958
Accumulated other comprehensive income
5,309
12,425
Total common stockholders' equity
1,584,411
1,638,271
Noncontrolling interests
538
570
Total equity
1,584,949
1,638,841
Total liabilities and equity
$ 18,574,749
$ 18,654,512
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in thousands)
Three months ended March 31,
2026
2025
Cash flows from operating activities:
Net income
$ 135,873
$ 142,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
56,686
54,126
Amortization of intangibles
3,656
4,200
Amortization of cemetery property
22,602
22,296
Amortization of loan costs
2,226
2,181
Provision for expected credit losses
1,943
2,311
Provision for deferred income taxes
7,249
2,669
Gains on divestitures and impairment charges, net
(1,274)
(4,971)
Share-based compensation
4,163
3,841
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease (increase) in receivables
401
(104)
Decrease (increase) in other assets
27,713
(2,365)
Increase in payables and other liabilities
33,736
48,296
Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments
8,158
5,076
Increase in deferred revenue, net
11,122
16,051
Increase in deferred receipts held in trust
19,539
14,613
Net cash provided by operating activities
333,793
311,147
Cash flows from investing activities:
Capital expenditures
(79,889)
(78,185)
Business acquisitions, net of cash acquired
(24,085)
(14,869)
Real estate acquisitions
(3,839)
(2,011)
Corporate headquarters
(28,156)
(8,916)
Proceeds from divestitures and sales of property and equipment
3,727
9,537
Payments for Company-owned life insurance policies
(96)
(57)
Proceeds from Company-owned life insurance policies and other
—
3,757
Net cash used in investing activities
(132,338)
(90,744)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
140,000
185,000
Scheduled payments of debt
(6,830)
(6,541)
Early payments of debt
(140,000)
(195,000)
Proceeds from corporate headquarters debt facility
26,082
2,522
Principal payments on finance leases
(9,784)
(9,332)
Proceeds from exercise of stock options
6,029
3,907
Purchase of Company common stock
(143,153)
(130,450)
Payments of dividends
(47,080)
(45,991)
Bank overdrafts and other
(10,173)
(9,809)
Net cash used in financing activities
(184,909)
(205,694)
Effect of foreign currency
(2,045)
128
Net increase in cash, cash equivalents, and restricted cash
14,501
14,837
Cash, cash equivalents, and restricted cash at beginning of period
246,468
221,399
Cash, cash equivalents, and restricted cash at end of period
$ 260,969
$ 236,236
Consolidated Segment Results
(See definitions of revenue line items later in this appendix.)
(Dollars in millions, except funeral services performed and average revenue per
service)
Three months ended March 31,
2026
2025
Consolidated funeral:
Atneed revenue
$ 320.2
$ 329.1
Matured preneed revenue
205.4
205.8
Core revenue
525.6
534.9
Non-funeral home revenue
28.9
27.6
Non-funeral home preneed sales revenue
22.1
22.2
Core general agency and other revenue
54.0
54.8
Total revenue
$ 630.6
$ 639.5
Gross profit
$ 134.0
$ 154.0
Gross profit percentage
21.2 %
24.1 %
Funeral services performed
93,686
97,854
Average revenue per service
$ 5,919
$ 5,748
(Dollars in millions)
Three months ended March 31,
2026
2025
Consolidated cemetery:
Atneed property revenue
$ 36.5
$ 37.2
Atneed merchandise and service revenue
72.7
75.1
Total atneed revenue
109.2
112.3
Recognized preneed property revenue
209.6
188.7
Recognized preneed merchandise and service revenue
106.3
98.5
Total recognized preneed revenue
315.9
287.2
Core revenue
425.1
399.5
Other cemetery revenue
40.8
35.2
Total revenue
$ 465.9
$ 434.7
Gross profit
$ 152.5
$ 137.4
Gross profit percentage
32.7 %
31.6 %
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended March 31, 2026 and 2025. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2025 and ending March 31, 2026.
(Dollars in millions, except average revenue per service and average
revenue per contract sold)
Three months ended March 31,
2026
2025
Var
%
Comparable funeral revenue:
Atneed revenue (1)
$ 312.9
$ 328.3
$ (15.4)
(4.7) %
Matured preneed revenue (2)
203.2
205.6
(2.4)
(1.2) %
Core revenue (3)
516.1
533.9
(17.8)
(3.3) %
Non-funeral home revenue (4)
28.7
27.0
1.7
6.3 %
Non-funeral home preneed sales revenue (5)
22.0
22.1
(0.1)
(0.5) %
Core general agency and other revenue (6)
53.4
54.6
(1.2)
(2.2) %
Total comparable revenue
$ 620.2
$ 637.6
$ (17.4)
(2.7) %
Comparable gross profit
$ 132.6
$ 155.4
$ (22.8)
(14.7) %
Comparable gross profit percentage
21.4 %
24.4 %
(3.0) %
Comparable funeral services performed:
Atneed
47,978
52,187
(4,209)
(8.1) %
Matured preneed
28,509
29,724
(1,215)
(4.1) %
Total core
76,487
81,911
(5,424)
(6.6) %
Non-funeral home
15,116
15,564
(448)
(2.9) %
Total comparable funeral services performed
91,603
97,475
(5,872)
(6.0) %
Core cremation rate
57.8 %
57.4 %
0.4 %
Total comparable cremation rate (7)
64.5 %
64.1 %
0.4 %
Comparable funeral average revenue per service:
Atneed
$ 6,522
$ 6,291
$ 231
3.7 %
Matured preneed
7,128
6,917
211
3.1 %
Total core
6,748
6,518
230
3.5 %
Non-funeral home
1,899
1,735
164
9.5 %
Total comparable average revenue per service
$ 5,947
$ 5,754
$ 193
3.4 %
Comparable funeral preneed sales production:
Total preneed sales
$ 306.0
$ 287.8
$ 18.2
6.3 %
Core contracts sold
36,247
35,223
1,024
2.9 %
Non-funeral home contracts sold
19,858
19,153
705
3.7 %
Core average revenue per contract sold
6,706
6,527
179
2.7 %
Non-funeral home average revenue per contract sold
$ 3,169
$ 3,024
$ 145
4.8 %
(1)
Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred.
(2)
Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits.
(3)
Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes.
(4)
Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred.
(5)
Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel.
(6)
Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net.
(7)
Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct).
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended March 31, 2026 and 2025. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2025 and ending March 31, 2026.
(Dollars in millions)
Three months ended March 31,
2026
2025
Var
%
Comparable cemetery revenue:
Atneed property revenue
$ 36.4
$ 37.2
$ (0.8)
(2.2) %
Atneed merchandise and service revenue
72.6
75.1
(2.5)
(3.3) %
Total atneed revenue (1)
109.0
112.3
(3.3)
(2.9) %
Recognized preneed property revenue
209.4
188.7
20.7
11.0 %
Recognized preneed merchandise and service revenue
106.3
98.5
7.8
7.9 %
Total recognized preneed revenue (2)
315.7
287.2
28.5
9.9 %
Core revenue (3)
424.7
399.5
25.2
6.3 %
Other revenue (4)
40.8
35.2
5.6
15.9 %
Total comparable revenue
$ 465.5
$ 434.7
$ 30.8
7.1 %
Comparable gross profit
$ 152.5
$ 137.5
$ 15.0
10.9 %
Comparable gross profit percentage
32.8 %
31.6 %
1.2 %
Comparable cemetery preneed and atneed sales production:
Property
$ 254.6
$ 234.9
$ 19.7
8.4 %
Merchandise and services
215.1
206.0
9.1
4.4 %
Discounts and other
(3.2)
(3.1)
(0.1)
(3.2) %
Preneed and atneed sales production
$ 466.5
$ 437.8
$ 28.7
6.6 %
Preneed sales production
$ 356.2
$ 324.6
$ 31.6
9.7 %
Recognition rate (5)
91.0 %
91.3 %
(1)
Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred.
(2)
Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income.
(3)
Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income.
(4)
Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts.
(5)
Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production.
Other Financial Results
Cash Flow and Capital Spending
(Dollars in millions)
Three months ended March 31,
2026
2025
Net cash provided by operating activities
$ 333.8
$ 311.1
Legal settlement payments
0.1
0.3
Restructuring charge payments
0.6
4.6
Net cash provided by operating activities excluding special items
$ 334.5
$ 316.0
Cash taxes included in net cash provided by operating activities excluding special
items
$ 4.4
$ 4.9
Net cash provided by operating activities excluding special items grew $18.5 million to $334.5 million in the first quarter of 2026 compared to $316.0 million in the first quarter of 2025. The increase is primarily driven by payroll-related working capital, due to an additional payroll tax payment made in the prior year.
A summary of our capital expenditures is set forth below:
(Dollars in millions)
Three months ended March 31,
2026
2025
Capital improvements at existing field locations
$ 20.0
$ 20.7
Development of cemetery property
40.9
41.4
Digital investments and corporate
5.6
4.8
Total maintenance, cemetery development, and other capital expenditures
(Maintenance capital expenditures)
$ 66.5
$ 66.9
Growth capital expenditures/construction of new funeral service locations
13.4
11.3
Total capital expenditures
$ 79.9
$ 78.2
Total capital expenditures increased $1.7 million in the current quarter, primarily due to growth capital expenditures for 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 March 31, 2026 is set forth below:
Three Months
Preneed funeral
(0.8) %
Preneed cemetery
(0.7) %
Cemetery perpetual care
(0.6) %
Combined trust funds
(0.7) %
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.
(Dollars in millions, except diluted EPS)
Three months ended March 31,
2026
2025
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income attributable to common stockholders, as reported
$ 135.8
$ 0.97
$ 142.9
$ 0.98
Pre-tax reconciling items:
Gains on divestitures and impairment charges, net
(1.3)
(0.01)
(5.0)
(0.03)
Tax reconciling items:
Tax effect from significant items
0.5
0.01
1.3
0.01
Change in non-recurring tax items
0.3
—
0.4
—
Earnings excluding special items and diluted earnings per share
excluding special items
$ 135.3
$ 0.97
$ 139.6
$ 0.96
Diluted weighted average shares outstanding
139.9
145.3
SOURCE Service Corporation International