Service Corporation International reported higher third-quarter earnings, revenue and operating cash flow, with growth in both funeral and cemetery preneed sales. The North American deathcare provider also said it updated its fourth-quarter outlook, citing elevated costs that are expected to continue into the final quarter.
The results combine stronger sales and revenue with margin pressure from healthcare, sales compensation and marketing costs. SCI said it continued investing in growth while returning capital to shareholders.
Third-quarter results
- GAAP earnings per share rose 24% to $1.03, from $0.83 a year earlier. Adjusted earnings per share increased 11% to $0.97, from $0.87.
- Revenue grew $49.2 million, or 5%, compared with the third quarter of 2025.
- Net cash from operating activities increased 18% to $296.8 million, from $252.3 million. Adjusted operating cash flow rose 11% to $296.9 million, from $267.9 million.
- Comparable total funeral sales average increased 3%. Funeral service volumes were stable, while average revenue per service grew.
- Comparable cemetery revenue increased 4%, supported by higher recognized revenue from preneed property, merchandise and services.
Preneed sales and costs
- Comparable funeral preneed sales production grew 6%; comparable cemetery preneed sales production rose 5%.
- Cemetery preneed property sales production increased 4%, while recognized preneed cemetery property revenue grew 1%. SCI said the gap weighs on near-term cemetery gross margins as sales are made, but adds deferred property sales to its backlog for recognition in future periods.
- Higher healthcare costs, selling compensation and advertising and marketing spending pressured margins. SCI expects these elevated costs to persist into the fourth quarter, and said they are reflected in its updated earnings outlook.
- Higher trust fund income and lower corporate general and administrative expenses partly offset the cost increases. The lower corporate expenses primarily reflected reduced long-term incentive compensation tied to total shareholder return.
Investment and shareholder returns
- SCI said it is directing capital toward acquisitions, cemetery property development, real estate investments and new funeral home construction.
- The company returned $464 million to shareholders year to date through dividends and share repurchases.
The announcement says SCI updated its fourth-quarter outlook, but the material provided does not include revised forecast figures. A conference call to discuss the results was scheduled for October 29.