Service Corporation International (SCI) Q2 2024 earnings summary

Executive summary

• Adjusted EPS for Q2 2024 was $0.79, down from $0.83 year-over-year, mainly due to lower funeral profits from fewer services performed and higher interest expense, partially offset by increased cemetery profits and acquisition results.

• Net income attributable to common stockholders for Q2 2024 was $118.2 million ($0.81 per diluted share), down from $132.2 million ($0.86 per share) in Q2 2023.

• Revenue for Q2 2024 was $1.03 billion, up 2% year-over-year, with cemetery growth offsetting flat funeral revenue.

• Operating cash flow for the first six months of 2024 was $417.0 million, up from $363.6 million in the prior year period.

• Management reaffirmed confidence in long-term growth strategy, emphasizing strong cash flow and continued capital returns to shareholders.

Financial highlights

• Q2 2024 revenue: $1,034.0 million (Q2 2023: $1,013.4 million); six months ended June 30, 2024: $2.08 billion (2023: $2.04 billion).

• Q2 2024 net income: $118.2 million (Q2 2023: $132.2 million); six months: $249.5 million (2023: $277.2 million).

• Q2 2024 operating income: $220.8 million (Q2 2023: $233.5 million).

• Free cash flow for Q2 2024 was $133.0 million, up from $67.1 million in Q2 2023; six-month free cash flow was $282.6 million, up from $216.6 million year-over-year.

• Adjusted net cash provided by operating activities (excluding special items) for Q2 2024 was $219.9 million, up from $157.4 million in Q2 2023.

Outlook and guidance

• Full-year adjusted EPS expected at the lower end of the $3.50–$3.80 range, with most EPS growth anticipated in Q4.

• Adjusted operating cash flow guidance for 2024 reiterated at $900 million–$960 million.

• Capital expenditures for 2024 expected at $325 million, with $125 million for field locations, $165 million for cemetery development, and $35 million for digital/corporate investments.

• 2025 EPS growth expected at the higher end of the historical 8%–12% range as headwinds subside and new insurance agreements take effect.

• Guidance excludes impacts from weather events, asset divestitures, early debt extinguishment, and certain legal or tax items.