Service surpasses revenue and profit expectations; revises FY25 forecast
Earnings Performance: Service Corporation International reported a Q3 Non-GAAP EPS of $0.87, exceeding expectations by $0.04, with revenue of $1.06 billion, a 5.0% year-over-year increase, surpassing estimates by $20 million.
Sales Growth: The company experienced a 3.1% growth in comparable total funeral sales, driven by a 13.4% increase in non-funeral home sales, while cemetery preneed sales production rose by 9.6%.
Cash Flow and Operating Activities: Net cash provided by operating activities was $252.3 million, down from $263.8 million in the previous year, primarily due to an increase in cash taxes paid; however, excluding special items, cash flow increased by $10 million to $283 million.
2025 Guidance Update: The company confirmed its 2025 earnings guidance with a narrowed range for diluted EPS of $3.80 to $3.90 and an increased cash flow outlook of $910 million to $950 million, reflecting lower cash taxes and improved working capital timing.
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- Profitability Improvement: Service Corporation International (SCI) reported adjusted earnings per share of $1.14 for Q4 2025, an 8% increase year-over-year, driven by moderate revenue and gross profit growth in both funeral and cemetery segments, indicating the company's stability and profitability in the market.
- Sales Growth Dynamics: Core funeral revenue increased by $6 million year-over-year despite a 1.9% decline in core service volume, while non-funeral preneed sales revenue rose by over $2 million, showcasing strong performance in insurance-funded contract sales.
- Cash Flow Performance: The adjusted operating cash flow for Q4 reached $213 million, with full-year operating cash flow at $966 million, reflecting a $108 million increase from the previous year, demonstrating effective cash flow management and capital return capabilities.
- Future Outlook: Management guided for 2026 normalized EPS between $4.05 and $4.35, with a growth range of 5% to 13%, and anticipates low to mid-single-digit growth in funeral and cemetery sales, reflecting a cautiously optimistic view on future market conditions.
- Financial Overview: In Q4 2025, Service Corporation International reported a non-GAAP EPS of $1.14, aligning with expectations, while revenue of $1.11 billion, a 1.8% year-over-year increase, fell short by $10 million, indicating slight market demand fluctuations.
- Sales Growth: Comparable preneed funeral sales surged 11% in Q4 2024, and comparable total funeral sales averaged a 3% increase, reflecting robust market demand in the funeral services sector, despite overall revenue missing projections.
- Cash Flow Performance: GAAP operating cash flow for 2025 was $943 million, slightly down from $945 million in 2024, while adjusted operating cash flow was $966 million, demonstrating stable cash flow management despite a minor decline.
- 2026 Outlook: The company anticipates 2026 diluted EPS to range between $4.05 and $4.35, aligning with its long-term growth framework of 8%-12%, indicating confidence in future growth, although expected cash taxes of $120 million may impact net cash flow.
- Significant Earnings Growth: In Q4 2025, adjusted earnings per share rose by 8%, with full-year adjusted EPS reaching $3.85, a 9% increase from the previous year, reflecting the company's strong performance in the deathcare sector and boosting investor confidence.
- Robust Cash Flow: The company generated $966 million in adjusted operating cash flow for the full year 2025, supporting strategic acquisitions and new funeral home developments while returning $645 million to shareholders, indicating effective capital allocation.
- Sustained Sales Growth: Preneed funeral and cemetery sales grew by 6% in Q4, alongside continued improvement in average funeral revenue, reflecting the company's competitive position and stable customer demand, which is expected to drive future revenue growth.
- Optimistic 2026 Outlook: The company anticipates adjusted earnings per share for 2026 to range from $4.05 to $4.35, aligning with its long-term growth target of 8% to 12%, demonstrating confidence in future performance and ongoing growth potential.
- Earnings Announcement Date: Service Corporation International (SCI) is set to release its Q4 2023 earnings on February 11th after market close, with consensus EPS estimates at $1.14, reflecting a 7.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: Analysts project that SCI's Q4 revenue will reach $1.12 billion, representing a 2.8% year-over-year increase, suggesting the company can maintain stable revenue growth in the current economic climate.
- Performance Beat Record: Over the past two years, SCI has exceeded EPS estimates 88% of the time and revenue estimates 88% of the time, showcasing its strong performance stability and market adaptability.
- Market Confidence: With visible demand and solid pricing power, investor sentiment towards SCI remains optimistic, as its business model and market position are expected to continue generating value for shareholders.
- Earnings Announcement Schedule: Service Corporation International (SCI) is set to announce its Q4 earnings on February 11 before market open, with a consensus EPS estimate of $1.14, reflecting a 7.5% year-over-year growth, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.12 billion, representing a 2.8% year-over-year increase, which underscores the company's solid demand and pricing power, further solidifying its market position.
- Historical Performance: Over the past two years, SCI has beaten EPS estimates 88% of the time and revenue estimates 88% of the time, demonstrating consistency and reliability in its financial performance.
- Market Confidence: With the upcoming earnings report, market confidence in SCI remains strong, as analysts generally believe the company possesses solid pricing power and visible demand, suggesting continued robust business growth.
- Earnings Release Announcement: Service Corporation International expects to issue its fourth quarter 2025 financial results on February 11, 2026, reflecting the company's ongoing commitment to transparency and investor communication.
- Conference Call Details: Management will host a conference call on February 12, 2026, at 8:00 a.m. Central Time, providing investors with a direct opportunity to engage with the leadership team and enhance market confidence.
- Dial-In Information: Investors can participate by calling (888) 317-6003 or international callers at (412) 317-6061 using code 4533133, ensuring broad dissemination and participation in the event.
- Replay Availability: The conference call replay will be available until February 19, 2026, allowing investors who cannot attend live to access key information, further enhancing the company's transparency and investor relations.





