Service Corporation International (SCI) Q1 2025 earnings summary

Executive summary

• Adjusted EPS for Q1 2025 was $0.96, up from $0.89 in Q1 2024, driven by strong funeral revenue and gross profit, partially offset by lower cemetery results.

• Net income attributable to common stockholders for Q1 2025 was $142.9 million ($0.98 per diluted share), up from $131.3 million ($0.89 per diluted share) in Q1 2024.

• Revenue increased to $1.07 billion, up 2.8% year-over-year, with growth in funeral services and a slight decline in cemetery revenue.

• Operating cash flow reached $311.1 million, up $91.0 million year-over-year, reflecting improved collections and cost management.

• Transition to insurance-funded pre-need contracts in SCI Direct caused temporary sales production declines but is expected to normalize by late 2025.

Financial highlights

• Q1 2025 revenue was $1,074.2 million, up from $1,045.4 million in Q1 2024.

• Adjusted operating cash flow for Q1 was $316 million, exceeding expectations and up over $90 million year-over-year.

• Free cash flow for Q1 2025 was $249.1 million, compared to $149.7 million in Q1 2024.

• Funeral gross profit increased by $21 million, with gross margin rising to over 24%.

• Returned $176 million to shareholders via $46 million in dividends and $130 million in share repurchases.

Outlook and guidance

• 2025 adjusted EPS guidance is $3.70–$4.00, midpoint implies 9% growth; long-term adjusted EPS growth expected at 8–12%.

• Adjusted operating cash flow guidance for 2025 is $1,005–$1,065 million; free cash flow expected near $550 million after maintenance capital.

• Maintenance capital expenditures for 2025 are projected at $315 million.

• Funeral volume expected to be flat to slightly down for 2025, with average revenue per case growing at inflationary rates.

• Guidance excludes impacts from weather events, asset divestitures, debt extinguishment, tax adjustments, acquisitions, and litigation costs.