Core Insights - The company, SCI, is the largest deathcare provider in North America, operating approximately 2,000 locations, including 1,500 funeral homes and 500 cemeteries across the U.S. and Canada [1][2] - SCI has maintained a consistent growth strategy since 2004, targeting an earnings growth framework of 8% to 12%, and has achieved a compounded earnings growth rate of approximately 14.5% from 2004 to 2019 [2][3] Business Strategy - The company employs a clustering strategy to maximize operational efficiency, allowing funeral directors to optimize their time by managing multiple locations [3][4] - The average funeral home in the U.S. conducts about 100 services annually, indicating that they operate only one out of every four days, which highlights the potential benefits of acquiring additional funeral homes to enhance service capacity [4]

Core Insights - The third-quarter 2025 investor letter from Aristotle Capital Boston, LLC indicates that U.S. small/mid-cap equities performed well, with the strategy returning 2.57% net of fees, underperforming the Russell 2500 Index's 9.00% total return [1]. Company Overview - Service Corporation International (NYSE:SCI) is identified as North America's largest provider of deathcare products and services, strategically positioned to benefit from demographic trends due to the aging Baby Boomer population [3]. - As of October 31, 2025, Service Corporation International's stock closed at $83.51 per share, with a market capitalization of $11.707 billion [2]. Performance Metrics - Service Corporation International's one-month return was -0.12%, while its shares gained 1.63% over the last 52 weeks [2]. - The company is expected to experience operating leverage and margin expansion due to its high fixed-cost structure and rising volumes [3]. Investment Strategy - The company employs a balanced capital allocation strategy that includes dividends, share repurchases, and acquisitions to enhance total shareholder value [3]. - Despite its potential, Service Corporation International is not among the 30 most popular stocks among hedge funds, with 30 hedge fund portfolios holding the stock at the end of the second quarter, an increase from 26 in the previous quarter [4].

Core Insights - Service Corporation International (SCI) is expected to report an increase in both revenues and earnings for the third quarter of 2025, with revenues estimated at $1.04 billion, reflecting a 2.5% growth year-over-year [1] - The earnings consensus for SCI remains stable at 83 cents per share, indicating a 5.1% increase from the previous year's figure [2] Industry Positioning - SCI is well-positioned in the recession-resilient deathcare industry, benefiting from strong market leadership and a diverse mix of at-need and pre-need services, which provide reliable revenue streams [3][9] - Long-term demographic trends, particularly the aging baby boomer generation, are driving increased demand for funeral and cemetery services [3] Operational Performance - The company enters the third quarter with solid momentum, having achieved strong results in the first half of 2025, with the funeral segment being a major growth driver due to higher service volumes and rising average revenue per service [4] - Continued strength in both pre-need and at-need revenues indicates solid consumer trust and consistent demand [4] Strategic Growth Initiatives - SCI's disciplined capital deployment towards cemetery development, facility upgrades, and targeted acquisitions supports its growth strategy [5] - The management's balanced approach between organic growth and strategic mergers and acquisitions positions SCI to sustain earnings growth and enhance shareholder value [5] Earnings Prediction - The current model does not predict a definitive earnings beat for SCI, as it holds a Zacks Rank of 2 and an Earnings ESP of 0.00% [6]

Core Viewpoint - Service Corporation International (SCI) is set to release its financial results for the third quarter of 2025 on October 29, 2025, with a conference call scheduled for October 30, 2025 [1][5]. Company Overview - Service Corporation International, headquartered in Houston, Texas, is the leading provider of funeral, cemetery, and cremation services in North America, serving over 600,000 families annually [2]. - As of September 30, 2025, SCI operates 1,487 funeral service locations and 499 cemeteries across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico [2]. - The company's Dignity Memorial® brand is recognized for its professionalism and compassionate service [2]. Upcoming Events - The third quarter 2025 earnings conference call will take place on October 30, 2025, at 8:00 a.m. Central Time, with dial-in options available for participants [5]. - A replay of the conference call will be accessible starting November 6, 2025, and will remain available for at least 90 days [5].

Core Insights - Service Corporation International (SCI) reported a strong second quarter performance with adjusted earnings per share of $0.88, reflecting an 11% increase year-over-year [2][8] - The company experienced a 14.8% growth in comparable funeral gross profit, driven by higher funeral revenue and effective cost management [2][26] - Cemetery segment sales production increased by 5.3%, contributing to modest revenue growth, with future benefits expected from undeveloped property sales [3][26] Financial Performance - Total revenue for the second quarter of 2025 was $1,065.4 million, up from $1,034.0 million in the same quarter of 2024, marking a $31.4 million increase [5][8] - Operating income rose to $224.5 million compared to $220.8 million in the prior year [5] - Net income attributable to common stockholders was $122.9 million, an increase from $118.2 million in the second quarter of 2024 [5][8] Earnings and Cash Flow - Diluted earnings per share increased to $0.86 from $0.81 year-over-year, while adjusted diluted earnings per share rose to $0.88 from $0.79 [5][9] - Net cash provided by operating activities was $166.5 million, down from $196.9 million in the prior year, primarily due to an increase in cash taxes paid [8][9] - Excluding special items, net cash provided by operating activities increased by over 14% [8][9] Guidance and Outlook - The company confirmed its 2025 earnings per share guidance range of $3.70 to $4.00 and raised its cash flow outlook to $880 million to $940 million [6][7] - The anticipated long-term growth framework for diluted earnings per share from continuing operations is expected to be within 8%-12% [6][7] Segment Performance - Comparable funeral revenue increased by $15.2 million, or 2.7%, driven by a $7.9 million increase in core funeral revenue [21][26] - Comparable cemetery revenue showed a slight increase, with total recognized preneed revenue at $323.0 million, down from $325.1 million [25][26] - The core cremation rate improved to 57.1%, reflecting a 20 basis point increase [26]

Core Points - Service Corporation International (SCI) announced a quarterly cash dividend of $0.32 per share, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [1] - The Board of Directors has increased the authorized level of share repurchases by approximately $528 million, bringing the total current share repurchase authority to $600 million [2] - SCI is the largest provider of deathcare products and services in North America, serving over 600,000 families annually with a diversified portfolio of brands [4] Company Overview - SCI is headquartered in Houston, Texas, and operates 1,489 funeral service locations and 496 cemeteries across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico [4] - The company offers a full range of services from simple cremations to full life celebrations, with its Dignity Memorial® brand recognized for professionalism and compassion [4]

Core Insights - Service Corporation International (SCI) reported an 8% growth in adjusted earnings per share and strong adjusted operating cash flows for Q1 2025, driven by performance in the funeral segment and effective cost management [3][6][9] - The company remains committed to its long-term growth strategy, focusing on revenue growth, leveraging scale, and capital investment to enhance shareholder value [4][9] Financial Performance - Revenue for Q1 2025 was $1,074.2 million, up from $1,045.4 million in Q1 2024, representing a growth of $28.8 million [5][6] - Operating income increased to $251.7 million from $232.2 million year-over-year [5][6] - Net income attributable to common stockholders rose to $142.9 million, compared to $131.3 million in the prior year [5][6] - Diluted earnings per share (EPS) was $0.98, a 10% increase from $0.89 in Q1 2024, while adjusted EPS was $0.96, reflecting an 8% growth [5][6][8] Cash Flow and Capital Management - Net cash provided by operating activities reached $311.1 million, up from $220.1 million in the same quarter last year [5][8][33] - The company plans to invest in capital improvements, cemetery property development, and digital investments, with total capital expenditures projected at $315 million for 2025 [10][33] Segment Performance - The funeral segment saw a 1.8% increase in comparable total funeral services performed and a 2.3% rise in average revenue per funeral [6][21] - The cemetery segment is focusing on production, with ongoing development expected to benefit future periods [3][4] - Comparable cemetery revenue decreased by $7.8 million, or 1.8%, primarily due to a decline in core revenue [30][34] Outlook - The company maintains its 2025 guidance for diluted EPS from continuing operations, expecting growth within the long-term framework of 8%-12% [9][10] - The anticipated diluted EPS for 2025 is projected to be between $3.70 and $4.00 [10]