Service Corporation International (SCI) Q4 2025 earnings summary

Executive summary

• Adjusted EPS for Q4 2025 was $1.14, up 8% year-over-year; full-year adjusted EPS was $3.85, up 9% year-over-year.

• Revenue grew 2% in Q4 2025 and 3% for the full year, driven by both funeral and cemetery segments.

• Net income attributable to common stockholders for Q4 2025 was $159.4 million.

• Strong preneed sales production and disciplined capital deployment supported growth and shareholder returns.

• Lower share count and reduced interest expense contributed positively to EPS growth.

Financial highlights

• Q4 2025 revenue: $1,111.5M (up from $1,093.0M in Q4 2024); full year: $4,309.2M (up from $4,186.4M).

• Q4 comparable funeral revenues rose by $3 million (<1%), driven by 3.2% growth in average revenue per service, offset by a 1.9% decline in funeral services performed.

• Adjusted operating cash flow for Q4 was $213 million; full-year 2025 was $966 million, up 11% from 2024 (excluding cash taxes and special items).

• Free cash flow for Q4 2025 was $106.7 million; full-year 2025 was $637.3 million.

• Funeral gross profit declined by $4 million; gross margin fell 70 bps to ~21% due to higher recognized selling compensation.

Outlook and guidance

• 2026 adjusted EPS guidance: $4.05–$4.35, representing 5%–13% growth, with a midpoint of 9%.

• 2026 net cash from operations (excluding special items and cash taxes): $1,125M–$1,185M.

• Maintenance CapEx for 2026 expected at $325 million.

• Funeral segment: flat to slightly down volume, average revenue per case to grow at inflationary rates, margin expansion of 20–60 bps.

• Cemetery segment: pre-need sales production to grow low- to mid-single digits, revenue up 2%–5%, margin expansion of 30–60 bps.