SERVICE CORPORATION INTERNATIONAL ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS AND UPDATES FOURTH QUARTER OUTLOOK
Conference call on Thursday, October 29, 2026, at 8:00 a.m. Central Time.
HOUSTON, Oct. 28, 2026 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the third quarter of 2026.
Third Quarter Highlights:
Tom Ryan, the Company's Chairman and CEO, commented on the third quarter performance:
"Today, we reported adjusted earnings per share of $0.97 and adjusted net cash provided by operating activities of $296.9 million, both delivering double-digit growth compared to the prior-year quarter. Our funeral segment delivered solid results, supported by continued growth in average revenue per service and stable funeral service volumes. Our cemetery segment generated 4% growth in comparable revenue, driven by higher recognized preneed property, merchandise and service revenue.
Preneed sales production remained a key contributor to our long-term growth outlook, with comparable funeral preneed sales production increasing 6% and comparable cemetery preneed sales production growing 5%. Additionally, recognized preneed cemetery property revenue grew 1%, while preneed property sales production increased 4%. This dynamic puts near-term pressure on cemetery gross margins but continues to expand our backlog with higher-margin deferred property sales, which will benefit us in future periods.
Despite these positive revenue and sales trends, margins were pressured by higher healthcare costs, higher selling compensation costs and increased advertising and marketing expenditures supporting our preneed sales growth. While we expect these elevated costs to continue into the fourth quarter, as reflected in our earnings outlook, our investments in preneed sales production will drive revenue and earnings growth as sales are recognized in the future. The impact of these higher costs during the quarter was partially offset by higher trust fund income and lower corporate general and administrative expenses, primarily reflecting reduced long-term incentive compensation tied to total shareholder return.
We continue to actively deploy capital across a range of strategic growth opportunities, including acquisitions, cemetery property development, real estate investments, and new funeral home construction. Our consistent cash flow generation allows us to fund these investments to support future growth while continuing to return significant capital to shareholders. Year to date, we have returned $464 million through dividends and share repurchases, reflecting our disciplined approach to creating long-term shareholder value.
Our results reflect the dedication of our more than 25,000 associates who make a difference in the lives of families every day. I am grateful for their unwavering commitment to providing exceptional care and service to the families and communities we serve."
Details of our third 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 September 30,
Nine months ended September 30,
2026
2025
2026
2025
Revenue
$ 1,107.3
$ 1,058.1
$ 3,307.0
$ 3,197.7
Operating income
$ 252.9
$ 226.4
$ 728.3
$ 702.5
Net income attributable to common stockholders
$ 141.3
$ 117.5
$ 401.9
$ 383.2
Diluted earnings per share
$ 1.03
$ 0.83
$ 2.90
$ 2.68
Earnings excluding special items (1)
$ 132.6
$ 122.7
$ 392.7
$ 387.8
Diluted earnings per share excluding special items (1)
$ 0.97
$ 0.87
$ 2.84
$ 2.71
Diluted weighted average shares outstanding
137.2
141.4
138.5
143.2
Net cash provided by operating activities
$ 296.8
$ 252.3
$ 869.3
$ 729.9
Net cash provided by operating activities excluding
special items (1)
$ 296.9
$ 267.9
$ 870.3
$ 751.8
(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.
UPDATED FOURTH QUARTER 2026 EARNINGS OUTLOOK; CASH FLOW CONFIRMED
We expect fourth quarter 2026 adjusted earnings per share of $1.10 to $1.20. Full year adjusted earnings per share are now expected to be $3.94 to $4.04. While we expect year-over-year revenue growth, this outlook reflects lower funeral volumes than we originally anticipated, coupled with the continued impact of higher healthcare costs, as well as higher selling compensation and advertising and marketing expenditures supporting our growth in preneed sales production. While these selling costs are impacting near-term earnings, these investments in preneed sales will contribute to future revenue and earnings growth as the related sales are recognized.
We are maintaining our full-year adjusted operating cash flow guidance, with a midpoint of $1,085 million, as well as our maintenance capital expenditure outlook of $335 million, resulting in expected adjusted free cash flow of approximately $750 million.
(Dollars in millions, except per share amounts)
Updated Fourth Quarter
Outlook
Diluted earnings per share excluding special items (1)
$1.10 - $1.20
Confirmed Full Year 2026
Cash Flow Outlook
Net cash provided by operating activities excluding special items and cash taxes (1)
$1,175 - $1,235
Cash taxes expected in 2026 (at midpoint of diluted earnings per share excluding
special items guidance)
$120
Net cash provided by operating activities excluding special items (1)
$1,055 - $1,115
Midpoint of net cash provided by operating activities excluding special items (1)
$1,085
Capital improvements at existing field locations
$140
Development of cemetery property
$170
Digital investments and corporate
$25
Total maintenance, cemetery development, and other capital expenditures
(Maintenance capital expenditures)
$335
(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, October 29, 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 8055657. 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 November 5, 2026 and can be accessed at (855) 669-9658 (US) or (412) 317-0088 (International) with the passcode of 6500598. 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 September 30, 2026, we owned and operated 1,491 funeral service locations and 506 cemeteries (of which 317 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: InvestorRelations@sci-us.com
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", "anticipate", or "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 THIRD QUARTER OF 2026
Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
Revenue
$ 1,107,262
$ 1,058,096
$ 3,307,004
$ 3,197,707
Cost of revenue
(834,989)
(792,553)
(2,474,779)
(2,369,309)
Gross profit
272,273
265,543
832,225
828,398
Corporate general and administrative expenses
(30,593)
(38,332)
(116,279)
(132,499)
Restructuring charge
—
(405)
—
(1,980)
Gains (losses) on divestitures and impairment charges, net
11,210
(415)
12,346
8,618
Operating income
252,890
226,391
728,292
702,537
Interest expense
(64,993)
(65,683)
(193,710)
(191,237)
Other income, net
902
153
2,243
7,219
Income before income taxes
188,799
160,861
536,825
518,519
Provision for income taxes
(47,478)
(43,339)
(134,754)
(135,146)
Net income
141,321
117,522
402,071
383,373
Net income attributable to noncontrolling interests
(45)
(49)
(162)
(155)
Net income attributable to common stockholders
$ 141,276
$ 117,473
$ 401,909
$ 383,218
Basic earnings per share:
Net income attributable to common stockholders
$ 1.04
$ 0.84
$ 2.92
$ 2.70
Basic weighted average number of shares
136,439
140,318
137,652
142,097
Diluted earnings per share:
Net income attributable to common stockholders
$ 1.03
$ 0.83
$ 2.90
$ 2.68
Diluted weighted average number of shares
137,226
141,424
138,484
143,227
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands, except share amounts)
September 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 172,653
$ 243,581
Receivables, net of reserves of $3,270 and $3,944, respectively
103,103
100,415
Inventories
37,921
35,246
Other
47,144
32,551
Total current assets
360,821
411,793
Preneed receivables, net of reserves of $34,768 and $34,680, respectively, and
trust investments
7,585,365
7,360,793
Cemetery property
2,278,344
2,201,967
Property and equipment, net
2,875,899
2,751,761
Goodwill
2,188,137
2,169,055
Deferred charges and other assets, net of reserves of $2,975 and $2,460,
respectively
1,339,115
1,360,530
Cemetery perpetual care trust investments
2,465,566
2,398,613
Total assets
$ 19,093,247
$ 18,654,512
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 708,721
$ 685,156
Current maturities of long-term debt
195,060
56,847
Income taxes payable
261
3,701
Total current liabilities
904,042
745,704
Long-term debt
4,977,888
5,082,970
Deferred revenue, net
1,820,555
1,779,266
Deferred tax liability
718,681
691,033
Other liabilities
590,529
550,793
Deferred compensation plan share awards
7,186
—
Deferred receipts held in trust
6,050,706
5,784,398
Care trusts' corpus
2,448,379
2,381,507
Commitments and contingencies
Equity:
Common stock, $1 per share par value, 500,000,000 shares authorized,
142,534,193 and 141,957,004 shares issued, respectively, and 136,051,688 and
139,678,199 shares outstanding, respectively
136,052
139,678
Capital in excess of par value
990,639
987,210
Retained earnings
451,446
498,958
Accumulated other comprehensive income
(3,331)
12,425
Total common stockholders' equity
1,574,806
1,638,271
Noncontrolling interests
475
570
Total equity
1,575,281
1,638,841
Total liabilities and equity
$ 19,093,247
$ 18,654,512
Consolidated Statement of Cash Flows (Unaudited)
(Dollars in thousands)
Nine months ended September 30,
2026
2025
Cash flows from operating activities:
Net income
$ 402,071
$ 383,373
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
172,429
163,462
Amortization of intangibles
10,465
12,353
Amortization of cemetery property
74,592
73,785
Amortization of loan costs
6,743
6,605
Provision for expected credit losses
7,254
7,394
Provision for deferred income taxes
28,492
32,310
Gains on divestitures and impairment charges, net
(12,346)
(8,618)
Share-based compensation
14,786
13,624
Change in assets and liabilities, net of effects from acquisitions and divestitures:
Decrease (increase) in receivables
8,495
(2,487)
Decrease (increase) in other assets
54,640
(18,115)
Increase in payables and other liabilities
35,175
26,006
Effect of preneed sales production and maturities:
Increase in preneed receivables, net and trust investments
(4,902)
(34,056)
Increase in deferred revenue, net
23,046
29,994
Increase in deferred receipts held in trust
48,348
44,230
Net cash provided by operating activities
869,288
729,860
Cash flows from investing activities:
Capital expenditures
(275,047)
(262,818)
Business acquisitions, net of cash acquired
(73,262)
(65,098)
Real estate acquisitions
(16,506)
(6,610)
Corporate headquarters
(72,419)
(44,942)
Proceeds from divestitures and sales of property and equipment
18,648
28,267
Payments for Company-owned life insurance policies
(10,818)
(216)
Proceeds from Company-owned life insurance policies and other
—
11,433
Tax credit equity investments
(40,737)
(1,435)
Net cash used in investing activities
(470,141)
(341,419)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
530,000
655,011
Scheduled payments of debt
(20,622)
(19,117)
Early payments of debt
(550,000)
(490,000)
Proceeds from corporate headquarters debt facility
56,086
33,533
Principal payments on finance leases
(30,122)
(28,590)
Proceeds from exercise of stock options
23,424
20,904
Purchase of Company common stock
(318,942)
(402,093)
Payments of dividends
(145,421)
(135,977)
Bank overdrafts and other
(11,533)
(2,548)
Net cash used in financing activities
(467,130)
(368,877)
Effect of foreign currency
(4,043)
3,522
Net (decrease) increase in cash, cash equivalents, and restricted cash
(72,026)
23,086
Cash, cash equivalents, and restricted cash at beginning of period
246,468
221,399
Cash, cash equivalents, and restricted cash at end of period
$ 174,442
$ 244,485
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 September 30,
Nine months ended September 30,
2026
2025
2026
2025
Consolidated funeral:
Atneed revenue
$ 293.3
$ 285.0
$ 912.2
$ 910.2
Matured preneed revenue
195.3
183.3
597.2
572.7
Core revenue
488.6
468.3
1,509.4
1,482.9
Non-funeral home revenue
28.4
26.2
84.8
79.5
Non-funeral home preneed sales revenue
20.9
22.5
64.4
71.2
Core general agency and other revenue
64.7
57.1
179.4
171.3
Total revenue
$ 602.6
$ 574.1
$ 1,838.0
$ 1,804.9
Gross profit
$ 104.9
$ 99.6
$ 349.2
$ 369.6
Gross profit percentage
17.4 %
17.3 %
19.0 %
20.5 %
Funeral services performed
86,278
84,636
267,311
269,504
Average revenue per service
$ 5,992
$ 5,843
$ 5,964
$ 5,797
(Dollars in millions)
Three months ended September 30,
Nine months ended September 30,
2026
2025
2026
2025
Consolidated cemetery:
Atneed property revenue
$ 35.8
$ 35.9
$ 109.8
$ 110.1
Atneed merchandise and service revenue
70.6
71.6
216.5
220.7
Total atneed revenue
106.4
107.5
326.3
330.8
Recognized preneed property revenue
231.8
228.6
666.8
637.7
Recognized preneed merchandise and service
revenue
120.9
109.9
343.5
314.3
Total recognized preneed revenue
352.7
338.5
1,010.3
952.0
Core revenue
459.1
446.0
1,336.6
1,282.8
Other cemetery revenue
45.5
38.0
132.4
110.0
Total revenue
$ 504.6
$ 484.0
$ 1,469.0
$ 1,392.8
Gross profit
$ 167.4
$ 165.9
$ 483.0
$ 458.8
Gross profit percentage
33.2 %
34.3 %
32.9 %
32.9 %
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended September 30, 2026 and 2025. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2025 and ending September 30, 2026.
(Dollars in millions, except average revenue per service and average
revenue per contract sold)
Three months ended September 30,
2026
2025
Var
%
Comparable funeral revenue:
Atneed revenue (1)
$ 283.0
$ 282.3
$ 0.7
0.2 %
Matured preneed revenue (2)
192.5
182.6
9.9
5.4 %
Core revenue (3)
475.5
464.9
10.6
2.3 %
Non-funeral home revenue (4)
28.2
25.5
2.7
10.6 %
Non-funeral home preneed sales revenue (5)
20.7
22.4
(1.7)
(7.6) %
Core general agency and other revenue (6)
63.8
56.7
7.1
12.5 %
Total comparable revenue
$ 588.2
$ 569.5
$ 18.7
3.3 %
Comparable gross profit
$ 103.8
$ 100.2
$ 3.6
3.6 %
Comparable gross profit percentage
17.6 %
17.6 %
— %
Comparable funeral services performed:
Atneed
43,387
43,980
(593)
(1.3) %
Matured preneed
26,184
25,921
263
1.0 %
Total core
69,571
69,901
(330)
(0.5) %
Non-funeral home
14,067
13,785
282
2.0 %
Total comparable funeral services performed
83,638
83,686
(48)
(0.1) %
Core cremation rate
58.2 %
57.6 %
0.6 %
Total comparable cremation rate (7)
65.0 %
64.4 %
0.6 %
Comparable funeral average revenue per service:
Atneed
$ 6,523
$ 6,419
$ 104
1.6 %
Matured preneed
7,352
7,044
308
4.4 %
Total core
6,835
6,651
184
2.8 %
Non-funeral home
2,005
1,850
155
8.4 %
Total comparable average revenue per service
$ 6,022
$ 5,860
$ 162
2.8 %
Comparable funeral preneed sales production:
Total preneed sales
$ 323.5
$ 304.9
$ 18.6
6.1 %
Core contracts sold
39,033
36,940
2,093
5.7 %
Non-funeral home contracts sold
19,450
18,345
1,105
6.0 %
Core average revenue per contract sold
6,711
6,710
1
— %
Non-funeral home average revenue per contract sold
$ 3,164
$ 3,111
$ 53
1.7 %
(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 September 30, 2026 and 2025. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2025 and ending September 30, 2026.
(Dollars in millions)
Three months ended September 30,
2026
2025
Var
%
Comparable cemetery revenue:
Atneed property revenue
$ 35.6
$ 35.9
$ (0.3)
(0.8) %
Atneed merchandise and service revenue
70.2
71.6
(1.4)
(2.0) %
Total atneed revenue (1)
105.8
107.5
(1.7)
(1.6) %
Recognized preneed property revenue
231.4
228.6
2.8
1.2 %
Recognized preneed merchandise and service revenue
120.7
109.9
10.8
9.8 %
Total recognized preneed revenue (2)
352.1
338.5
13.6
4.0 %
Core revenue (3)
457.9
446.0
11.9
2.7 %
Other revenue (4)
45.5
38.0
7.5
19.7 %
Total comparable revenue
$ 503.4
$ 484.0
$ 19.4
4.0 %
Comparable gross profit
$ 167.1
$ 166.0
$ 1.1
0.7 %
Comparable gross profit percentage
33.2 %
34.3 %
(1.1) %
Comparable cemetery preneed and atneed sales production:
Property
$ 264.8
$ 256.1
$ 8.7
3.4 %
Merchandise and services
212.1
205.4
6.7
3.3 %
Discounts and other
(2.9)
(4.4)
1.5
34.1 %
Preneed and atneed sales production
$ 474.0
$ 457.1
$ 16.9
3.7 %
Preneed sales production
$ 369.2
$ 352.2
$ 17.0
4.8 %
Recognition rate (5)
96.6 %
97.6 %
(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 September 30,
Nine months ended September 30,
2026
2025
2026
2025
Net cash provided by operating activities
$
296.8
$
252.3
$
869.3
$
729.9
Legal settlement payments
0.1
—
0.4
0.4
Restructuring charge payments
—
15.6
0.6
21.5
Net cash provided by operating activities excluding
special items
$
296.9
$
267.9
$
870.3
$
751.8
Cash taxes included in net cash provided by
operating activities excluding special items
$
30.9
$
15.1
$
65.3
$
114.3
Net cash provided by operating activities, excluding special items, grew $29.0 million to $296.9 million in the third quarter of 2026 compared to $267.9 million in the third quarter of 2025. The increase was supported by higher operating income of $26.5 million, which included an $11.6 million favorable change in gains (losses) on non-strategic asset divestitures and impairment charges. The remaining $14.9 million increase was attributable to other components of operating income supporting cash provided by operating activities. Additionally, working capital provided a $29.9 million benefit, primarily related to the timing of an additional payroll cycle in the prior year period. These benefits were both partially offset by $15.8 million of higher cash taxes.
A summary of our capital expenditures is set forth below:
(Dollars in millions)
Three months ended September 30,
Nine months ended September 30,
2026
2025
2026
2025
Capital improvements at existing field locations
$ 30.8
$ 34.9
$ 80.5
$ 84.6
Development of cemetery property
42.3
45.0
127.6
121.1
Digital investments and corporate
6.4
6.1
18.0
16.0
Total maintenance, cemetery development, and
other capital expenditures (Maintenance capital
expenditures)
$ 79.5
$ 86.0
$ 226.1
$ 221.7
Growth capital expenditures/construction of new
funeral service locations
20.0
15.6
48.9
41.1
Total capital expenditures
$ 99.5
$ 101.6
$ 275.0
$ 262.8
Total capital expenditures decreased $2.1 million in the current quarter, primarily due to the timing of maintenance capital expenditures and growth capital expenditures compared to the prior-year 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 September 30, 2026 is set forth below:
Three Months
Nine Months
Preneed funeral
(0.7) %
6.4 %
Preneed cemetery
(0.5) %
6.6 %
Cemetery perpetual care
(1.1) %
5.6 %
Combined trust funds
(0.7) %
6.2 %
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 September 30,
2026
2025
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income attributable to common stockholders, as reported
$ 141.3
$ 1.03
$ 117.5
$ 0.83
Pre-tax reconciling items:
(Gains) losses on divestitures and impairment charges, net
(11.2)
(0.08)
0.4
—
Restructuring charge
—
—
0.4
—
Tax reconciling items:
Tax effect from significant items
2.7
0.02
(0.1)
0.01
Change in non-recurring tax items
(0.2)
—
4.5
0.03
Earnings excluding special items and diluted earnings per share
excluding special items
$ 132.6
$ 0.97
$ 122.7
$ 0.87
Diluted weighted average shares outstanding
137.2
141.4
(Dollars in millions, except diluted EPS)
Nine months ended September 30,
2026
2025
Net
Income
Diluted
EPS
Net
Income
Diluted
EPS
Net income attributable to common stockholders, as reported
$ 401.9
$ 2.90
$ 383.2
$ 2.68
Pre-tax reconciling items:
Gains on divestitures and impairment charges, net
(12.3)
(0.09)
(8.6)
(0.06)
Legal settlement
—
—
6.4
0.04
Restructuring charge
—
—
2.0
0.01
Tax reconciling items:
Tax effect from significant items
3.0
0.03
0.3
0.01
Change in non-recurring tax items
0.1
—
4.5
0.03
Earnings excluding special items and diluted earnings per share
excluding special items
$ 392.7
$ 2.84
$ 387.8
$ 2.71
Diluted weighted average shares outstanding
138.5
143.2
SOURCE Service Corporation International