Carriage Services (CSV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $107.1 million, up 3.5% year-over-year, driven by higher funeral contract volume, increased average revenue per contract, and preneed sales.

• Net income surged to $20.9 million, up 200.1% year-over-year, with diluted EPS of $1.34 and adjusted diluted EPS of $0.96, up 197.8% and 28% respectively.

• Adjusted operating profit reached $48.2 million, with a margin of 45.0%, up from $46.3 million and 44.8% a year ago.

• Divested non-core assets for $18.7 million, generating a $5.8 million gain, and used proceeds to pay down $17 million in debt, reducing leverage ratio to 4.2x from 5.0x.

• Leadership changes included a new CFO and Board Chair, with continued focus on strategic growth, operational excellence, and cost management.

Financial highlights

• Funeral operating revenue rose 4.6% to $69.1 million; cemetery revenue increased 5.8% to $27.9 million; financial revenue grew 9.1% to $7.4 million.

• Adjusted consolidated EBITDA was $32.9 million (30.8% margin), down from $33.6 million (32.5% margin) year-over-year.

• Adjusted free cash flow was $13.4 million, down from $18.5 million year-over-year.

• Cash from operations was $13.8 million, down from $19.7 million, mainly due to working capital changes.

• Overhead as a percentage of revenue was 14.3%, or 12.5% excluding non-recurring costs, down from 18.7% year-over-year.

Outlook and guidance

• Maintained full-year 2025 guidance: revenue $400–$410 million, adjusted EBITDA $128–$133 million, adjusted EPS $3.10–$3.30, adjusted free cash flow $40–$50 million, with guidance reflecting planned divestitures.

• Divestitures in 2025 expected to reduce revenue by ~$7.9 million and adjusted EBITDA by ~$2.3 million.

• Management remains cautious due to macroeconomic uncertainty but may revise guidance upward if momentum continues.

• Sufficient liquidity is anticipated for the next 12 months and long-term obligations.