Service Corporation International (SCI) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and industry positioning

• Operates about 2,000 funeral and cemetery locations in North America, with a strong focus on major metropolitan areas and middle to upper spend categories.

• Holds a unique, hard-to-duplicate network of 500 large cemeteries, many with significant acreage in urban centers.

• Maintains a $17–$18 billion backlog of future revenues from pre-need contracts, positioning for long-term growth.

• Revenue growth currently driven by low single-digit increases in average sale price and strong pre-need cemetery sales.

• EPS growth averaged 13–14% CAGR pre-COVID, with normalization post-pandemic.

COVID-19 impact and operational changes

• COVID accelerated technology adoption, including customer-facing applications and virtual sales tools.

• Sales force was streamlined from 4,300 to 3,800 counselors, increasing efficiency and sales production.

• Consumer demand for full-service funerals remained strong, reinforcing the value of service offerings.

• Cost synergies and operational efficiencies realized during the pandemic have been sustained.

M&A strategy and capital allocation

• Focus shifted from large transformative deals to mid-level M&A in major markets and share repurchases.

• Nearly 60% of shares repurchased over 20 years, reducing outstanding shares from 340 million to under 140 million.

• Annual M&A spend is about $100 million, targeting large independents in metropolitan areas for scale benefits.

• Private equity activity is mostly in rural, lower-volume businesses, not directly competing for core targets.

• Strong pipeline of potential deals, with continued investment in new construction ($60–$80 million/year).