SERVICE CORPORATION INTERNATIONAL ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS, CONFIRMS 2025 EARNINGS PER SHARE GUIDANCE AND RAISES 2025 CASH FLOW GUIDANCE
Conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time.
HOUSTON, July 30, 2025 /PRNewswire/ -- Service Corporation International (NYSE:SCI), the largest provider of deathcare products and services in North America, today reported results for the second quarter of 2025.
Second Quarter Highlights:
Revenue grew $31.4 million over the second quarter of 2024
Gross profit increased $13.5 million, or 5%, in the current quarter
Comparable total funeral sales average grew 3.1% over the second quarter of 2024
Cemetery preneed sales production increased 5.3% in the current quarter
GAAP earnings per share was $0.86 compared to $0.81 in the second quarter of 2024 resulting in 6% growth over the prior year quarter
Adjusted earnings per share was $0.88 compared to $0.79 in the second quarter of 2024 resulting in 11% growth over the prior year quarter
Net cash provided by operating activities was $166.5 million in the second quarter of 2025 compared to $196.9 million in the prior year quarter, affected by an expected increase in cash taxes paid of $84.3 million
Excluding special items and cash taxes paid, net cash provided by operating activities increased $32.7 million, or over 14%
Tom Ryan, the Company's Chairman and CEO, commented on the second quarter performance:
"We are pleased to report adjusted earnings per share of $0.88, an impressive increase of 11% over the prior year quarter. Higher funeral revenue and effective fixed cost management drove significant growth in comparable funeral gross profit of 14.8% and solid margin expansion. Funeral revenue increased on a higher average revenue per funeral and higher core general agency revenue as we benefited from the change in our preferred preneed insurance provider.
In the cemetery segment, we continue to focus on sales production, which led to increases in both preneed and atneed sales production. A 5.3% increase in preneed sales production resulted in a modest increase in cemetery revenues during the quarter, and the preponderance of this increase will benefit us in future periods, as undeveloped property sold is constructed and recognized.
We remain committed to our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value. With these results, we believe we are well positioned to achieve our 2025 targeted results. I would like to extend a very special thank you to our 25,000 associates for their ongoing commitment to providing excellent service to our client families."
Details of our second quarter 2025 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.
(Dollars in millions, except for per share amounts)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
$ 1,065.4
$ 1,034.0
$ 2,139.6
$ 2,079.4
Operating income
$ 224.5
$ 220.8
$ 476.1
$ 453.0
Net income attributable to common stockholders
$ 122.9
$ 118.2
$ 265.7
$ 249.5
Diluted earnings per share
$ 0.86
$ 0.81
$ 1.84
$ 1.69
Earnings excluding special items (1)
$ 125.5
$ 115.9
$ 265.1
$ 247.8
Diluted earnings per share excluding special items (1)
$ 0.88
$ 0.79
$ 1.84
$ 1.68
Diluted weighted average shares outstanding
143.0
146.8
144.1
147.3
Net cash provided by operating activities
$ 166.5
$ 196.9
$ 477.6
$ 417.0
Net cash provided by operating activities excluding special items (1)
$ 168.3
$ 219.9
$ 484.2
$ 440.0
(1)
Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found later in this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release.
Diluted earnings per share was $0.86 in the second quarter of 2025 compared to $0.81 in the second quarter of 2024. The current year quarter was favorably impacted by $4.1 million of net gains on divestitures and impairment charges. This benefit was offset by $6.4 million related to the settlement of certain legal matters and $1.6 million of restructuring charges. The prior year quarter was favorably impacted by $1.9 million of net gains on divestitures. Diluted earnings per share, excluding special items, was $0.88 in the second quarter of 2025 compared to $0.79 in the second quarter of 2024. Higher gross profit and lower share count more than offset higher general and administrative expenses resulting in 11% adjusted diluted earnings per share growth over the prior year quarter.
Excluding an expected increase in cash taxes paid of $84.3 million, net cash provided by operating activities increased $53.9 million to $260.8 million. Excluding special items and cash taxes paid, net cash provided by operating activities increased $32.7 million to $262.6 million. The increase in the quarter excluding higher cash taxes paid is attributable to higher operating income and working capital benefits, partially offset by higher cash interest.
CONFIRMED 2025 EARNINGS PER SHARE GUIDANCE ANDRAISED 2025 CASH FLOW GUIDANCE
Our annual guidance range for 2025 detailed below is confirmed for earnings per share of $3.70 to $4.00. Our cash flow outlook has increased to $880 million to $940 million due to lower cash taxes and stronger working capital benefits. Our outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.
(Dollars in millions, except per share amounts)
2025 Outlook
Revised 2025 Outlook
Diluted earnings per share excluding special items (1)
$3.70 - $4.00
$3.70 - $4.00
Net cash provided by operating activities excluding special items and cash taxes (1)
$1,005 - $1,065
$1,025 - $1,085
Cash taxes expected in 2025 (at the midpoint of Diluted earnings per share guidance)
$175
$145
Net cash provided by operating activities excluding special items (1)
$830 - $890
$880 - $940
Capital improvements at existing field locations
$130
$130
Development of cemetery property
$160
$160
Digital investments and corporate
$25
$25
Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures)
$315
$315
(1)
Diluted earnings per share excluding special items and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2025 excludes the following because this information is not currently available for 2025: Expenses net of insurance recoveries related to weather events and hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs or cash outflows associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP.
CONFERENCE CALL AND WEBCAST
We will host a conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 0839787. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through August 7, 2025 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 2965589. Additionally, a replay of the conference call will be available on our website for approximately three months.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE:SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving more than 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At June 30, 2025, we owned and operated 1,485 funeral service locations and 498 cemeteries (of which 310 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact:
Investors:
Trey Bocage - Director / Investor Relations
(713) 525-3454
Media:
Jay Andrew - Assistant Vice President / Corporate Communications
(713) 525-3468
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," "predict," or other similar words that convey the uncertainty of future events or outcomes. The absence of these words, however, does not mean that the statements are not forward-looking. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:
Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.
We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
We may be adversely affected by the effects of inflation, significant reduction in consumer confidence and customer demand, and/or recession.
Our results may be adversely affected by significant weather events, natural disasters, catastrophic events, or public health crises.
Our credit agreements contain covenants that may prevent us from engaging in certain transactions.
If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.
The financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue.
Unfavorable publicity could affect our reputation and business.
Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition.
We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
Any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.
Our Canadian business exposes us to operational, economic, and currency risks.
Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.
A failure of a key information technology system or process could disrupt and adversely affect our business.
The funeral and cemetery industry is competitive.
If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.
The continuing upward trend in life expectancy and the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.
Our funeral and cemetery businesses are high fixed-cost businesses.
Risks associated with our supply chain could materially adversely affect our financial performance.
Disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between the United States and other countries could increase costs to our business.
Regulation and compliance could have a material adverse impact on our financial results.
Unfavorable results of litigation could have a material adverse impact on our financial statements.
Cemetery operational claims could have a material adverse impact on our financial results.
The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.
Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2024 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise.
SERVICE CORPORATION INTERNATIONALAPPENDIX: RESULTS FOR THE SECOND QUARTER OF 2025
Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Revenue
$ 1,065,444
$ 1,034,016
$ 2,139,611
$ 2,079,398
Cost of revenue
(794,006)
(776,101)
(1,576,756)
(1,547,270)
Gross profit
271,438
257,915
562,855
532,128
Corporate general and administrative expenses
(49,466)
(38,998)
(94,167)
(80,323)
Restructuring charge
(1,575)
—
(1,575)
—
Gains on divestitures and impairment charges, net
4,062
1,924
9,033
1,240
Operating income
224,459
220,841
476,146
453,045
Interest expense
(64,071)
(64,384)
(125,554)
(128,736)
Other income, net
3,914
1,725
7,066
4,187
Income before income taxes
164,302
158,182
357,658
328,496
Provision for income taxes
(41,378)
(39,962)
(91,807)
(79,002)
Net income
122,924
118,220
265,851
249,494
Net income attributable to noncontrolling interests
(59)
(54)
(106)
(27)
Net income attributable to common stockholders
$ 122,865
$ 118,166
$ 265,745
$ 249,467
Basic earnings per share:
Net income attributable to common stockholders
$ 0.87
$ 0.81
$ 1.86
$ 1.71
Basic weighted average number of shares
141,897
145,297
143,001
145,782
Diluted earnings per share:
Net income attributable to common stockholders
$ 0.86
$ 0.81
$ 1.84
$ 1.69
Diluted weighted average number of shares
142,992
146,784
144,134
147,348
Consolidated Balance Sheet (Unaudited)
(Dollars in thousands, except share amounts)
June 30, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$ 255,386
$ 218,766
Receivables, net
85,085
94,341
Inventories
32,406
33,318
Income tax receivable
19,356
3,775
Other
41,908
27,130
Total current assets
434,141
377,330
Preneed receivables, net of reserves of $35,582 and $35,857, respectively, and trust investments
7,065,296
