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

Core Insights - Service Corporation International (SCI) reported a strong financial performance for Q4 2025, with adjusted earnings per share (EPS) growing 8% year-over-year to $1.14 and a full-year adjusted EPS increase of 9% to $3.85 [1][2] - The company generated $966 million in adjusted operating cash flow for the full year, enabling strategic investments and returning $645 million to shareholders through dividends and share repurchases [1][2] - Looking ahead to 2026, SCI anticipates adjusted EPS growth within the long-term target range of 8% to 12% [2] Financial Performance - Q4 2025 revenue increased by $19 million, or 2%, to $1,111.5 million compared to Q4 2024, with full-year revenue rising by $123 million, or 3%, to $4,309.2 million [1][3] - Gross profit for Q4 2025 was $311.7 million, a 2% increase from Q4 2024, while full-year gross profit rose by $49 million, or 5%, to $1,140.1 million [1][3] - Net cash provided by operating activities decreased by $51.2 million to $212.9 million in Q4 2025, primarily due to higher cash interest and taxes [1][3] Segment Performance - Comparable preneed cemetery sales production grew by 2% in Q4 2025, with a full-year increase of $48 million, or 4% [1][5] - Comparable total funeral sales average increased by 3% in Q4 2025, while comparable preneed funeral sales production surged by 11% [1][5] - The company experienced a 0.9% increase in comparable cemetery revenue, driven by higher other revenue, despite a decline in core revenue [6] Capital Expenditures and Investments - In 2025, SCI invested approximately $101 million in acquisitions of 22 funeral homes and 2 cemeteries, alongside $79 million in real estate and new construction [1][2] - Total capital expenditures for 2025 amounted to $388.6 million, reflecting a $19.5 million increase from the previous year [6][7] Outlook for 2026 - The 2026 outlook for diluted EPS excluding special items is projected to be between $4.05 and $4.35, with net cash provided by operating activities expected to range from $1,005 million to $1,065 million [2][3] - Capital improvements at existing locations are budgeted at $135 million, with cemetery property development at $165 million [2][3]