Service Corporation International (SCI) investor relations material

Executive summary

• Adjusted EPS for Q1 2026 was $0.97, nearly flat compared to $0.96 in Q1 2025, with strong cemetery performance and preneed sales growth offsetting lower funeral revenue due to a 6.6% decline in case volume and a lower share count.

• Net income attributable to common stockholders was $135.8 million for Q1 2026, down from $142.9 million in Q1 2025.

• Revenue totaled $1.10 billion, up 2.1% year-over-year, driven by strong cemetery performance and preneed sales growth.

• Maintained a $17.1 billion backlog of future revenue from trust and insurance-funded preneed sales, supporting long-term stability.

• Cost controls and disciplined expense management helped mitigate margin impacts from lower volumes.

Financial highlights

• Total revenue increased to $1,096.5 million from $1,074.2 million year-over-year.

• Gross profit was $286.5 million, down from $291.4 million in Q1 2025, with a gross margin of 26.1%.

• Operating income was $243.8 million, compared to $251.7 million in the prior year.

• Adjusted operating cash flow was $334.5 million, up 6% year-over-year, aided by favorable working capital timing and strong preneed receipts.

• Free cash flow for Q1 2026 was $268.0 million, compared to $249.1 million in Q1 2025.

Outlook and guidance

• 2026 adjusted EPS guidance ranges from $4.05 to $4.35, with a midpoint of $4.20.

• Net cash provided by operating activities excluding special items expected at $1,005–$1,065 million, with a higher range of $1,125–$1,185 million including cash taxes.

• Maintenance capital expenditures are projected at $325 million for 2026.

• Funeral volumes expected to decline 1%-3% for the year, with improvement anticipated in the second half.

• Guidance framework anticipates 8–12% long-term EPS growth.