Service Corporation International (SCI) Q3 2024 earnings summary

Executive summary

• Adjusted EPS for Q3 2024 was $0.79, up from $0.78 year-over-year, while diluted EPS was $0.81, and net income was $117.8M, down from $122.0M; nine-month net income was $367.3M.

• Revenue for Q3 2024 was $1.014B, up from $1.00B; nine-month revenue reached $3.09B.

• Gross profit for Q3 2024 was $252.6M, nearly flat year-over-year, with stable margins in both funeral and cemetery segments.

• $123M was invested in acquisitions, adding 10 funeral homes and 2 cemeteries, plus $31M in real estate for expansion.

• Adjusted operating cash flow was $269M, up 18% year-over-year, driven by strong pre-need cemetery installment receipts.

Financial highlights

• Comparable funeral revenues rose 1.3% year-over-year, with average revenue per service up 2.1% despite a slight volume decline.

• Funeral gross profit declined by $2M, margin down to just over 19%.

• Comparable cemetery revenue was flat; gross profit increased by $1M, margin up to 32%.

• Operating income for Q3 2024 was $212.4M, down from $223.0M year-over-year.

• Free cash flow for Q3 2024 was $180.6M, up from $146.0M in Q3 2023.

Outlook and guidance

• Q4 2024 adjusted EPS expected at $1.00–$1.10, up 8%–18% year-over-year.

• 2024 adjusted EPS guidance is $3.47–$3.57; midpoint at $3.52.

• 2024 adjusted cash flow from operations guidance raised to $940–$960M; midpoint of adjusted operating cash flow guidance raised to $950M.

• Maintenance CapEx for 2024 expected at $325M.

• 2025 cash taxes expected to increase by $150M as tax benefits normalize.