Conference call on Thursday, October 29, 2026, at 8:00 a.m. Central Time.

HOUSTON, Oct. 28, 2026 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the third quarter of 2026.

Third Quarter Highlights:

• GAAP earnings per share increased 24% to $1.03 from $0.83 in the third quarter of 2025
• Adjusted earnings per share increased 11% to $0.97 from $0.87 in the third quarter of 2025
• Consolidated revenue grew $49.2 million, or 5%, over the third quarter of 2025
• Comparable funeral preneed sales production increased 6% in the current quarter
• Comparable cemetery preneed sales production increased 5% in the current quarter
• Comparable total funeral sales average grew 3% over the third quarter of 2025
• Net cash provided by operating activities increased $44.5 million, or 18%, to $296.8 million in the current quarter compared to $252.3 million in the prior-year quarter
• Adjusted cash provided by operating activities increased $29.0 million, or 11%, to $296.9 million in the current quarter compared to $267.9 million in the prior year

Tom Ryan, the Company's Chairman and CEO, commented on the third quarter performance:

"Today, we reported adjusted earnings per share of $0.97 and adjusted net cash provided by operating activities of $296.9 million, both delivering double-digit growth compared to the prior-year quarter. Our funeral segment delivered solid results, supported by continued growth in average revenue per service and stable funeral service volumes. Our cemetery segment generated 4% growth in comparable revenue, driven by higher recognized preneed property, merchandise and service revenue.

Preneed sales production remained a key contributor to our long-term growth outlook, with comparable funeral preneed sales production increasing 6% and comparable cemetery preneed sales production growing 5%. Additionally, recognized preneed cemetery property revenue grew 1%, while preneed property sales production increased 4%. This dynamic puts near-term pressure on cemetery gross margins but continues to expand our backlog with higher-margin deferred property sales, which will benefit us in future periods.

Despite these positive revenue and sales trends, margins were pressured by higher healthcare costs, higher selling compensation costs and increased advertising and marketing expenditures supporting our preneed sales growth. While we expect these elevated costs to continue into the fourth quarter, as reflected in our earnings outlook, our investments in preneed sales production will drive revenue and earnings growth as sales are recognized in the future. The impact of these higher costs during the quarter was partially offset by higher trust fund income and lower corporate general and administrative expenses, primarily reflecting reduced long-term incentive compensation tied to total shareholder return.

We continue to actively deploy capital across a range of strategic growth opportunities, including acquisitions, cemetery property development, real estate investments, and new funeral home construction. Our consistent cash flow generation allows us to fund these investments to support future growth while continuing to return significant capital to shareholders. Year to date, we have returned $464 million through dividends and share repurchases, reflecting our disciplined approach to creating long-term shareholder value.

Our results reflect the dedication of our more than 25,000 associates who make a difference in the lives of families every day. I am grateful for their unwavering commitment to providing exceptional care and service to the families and communities we serve."

Details of our third quarter 2026 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.

• Diluted earnings per share was $1.03 in the third quarter of 2026 compared to $0.83 in the third quarter of 2025. The current year quarter was impacted by $11.2 million of net gains on non-strategic asset divestitures and impairment charges compared to $0.4 million of net losses in the prior year. The prior year also included a $0.4 million restructuring charge. Diluted earnings per share, excluding special items, was $0.97 in the third quarter of 2026 compared to $0.87 in the third quarter of 2025. Higher operating income and lower share count resulted in 11% growth over the prior-year quarter.
• Net cash provided by operating activities increased $44.5 million, or 18%, to $296.8 million in the third quarter of 2026. Adjusted cash provided by operating activities increased $29.0 million, or 11%, to $296.9 million in the current quarter compared to $267.9 million in the prior year. The increase in the quarter is supported by higher operating income and working capital sources, partially offset by higher cash taxes.

UPDATED FOURTH QUARTER 2026 EARNINGS OUTLOOK; CASH FLOW CONFIRMED

We expect fourth quarter 2026 adjusted earnings per share of $1.10 to $1.20. Full year adjusted earnings per share are now expected to be $3.94 to $4.04. While we expect year-over-year revenue growth, this outlook reflects lower funeral volumes than we originally anticipated, coupled with the continued impact of higher healthcare costs, as well as higher selling compensation and advertising and marketing expenditures supporting our growth in preneed sales production. While these selling costs are impacting near-term earnings, these investments in preneed sales will contribute to future revenue and earnings growth as the related sales are recognized.

We are maintaining our full-year adjusted operating cash flow guidance, with a midpoint of $1,085 million, as well as our maintenance capital expenditure outlook of $335 million, resulting in expected adjusted free cash flow of approximately $750 million.

CONFERENCE CALL AND WEBCAST

We will host a conference call on Thursday, October 29, 2026, at 8:00 a.m. Central Time. A question and answer session will follow prepared remarks made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 8055657. 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 November 5, 2026 and can be accessed at (855) 669-9658 (US) or (412) 317-0088 (International) with the passcode of 6500598. 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 approximately 700,000 combined preneed and atneed 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 September 30, 2026, we owned and operated 1,491 funeral service locations and 506 cemeteries (of which 317 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.

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", or "predict" that convey the uncertainty of future events or outcomes. 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, or on behalf of, the Company. These factors are discussed below. Except as required by applicable law, 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 the Company, whether as a result of new information, future events, or otherwise.

• 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.
• 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 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 protect personal 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.
• A failure of a key information technology system or process could disrupt and adversely affect our business.
• 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.
• 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 an increase in 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, such as tariffs, could materially adversely affect our financial performance.
• 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 burial practice 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 2025 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.

SERVICE CORPORATION INTERNATIONAL

APPENDIX: RESULTS FOR THE THIRD QUARTER OF 2026

Comparable Funeral Results

The table below details comparable funeral results of operations ("same store") for the three months ended September 30, 2026 and 2025. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2025 and ending September 30, 2026.

• Total comparable funeral revenue increased $18.7 million. Core funeral revenue increased $10.6 million, or 2.3%, primarily due to a 2.8% increase in core average revenue per service partially offset by a 0.5% decrease in core funeral services performed. The core cremation rate increased 60 basis points to 58.2%.
• Non-funeral home revenue increased $2.7 million, or 10.6%, due to an 8.4% increase in non-funeral home average revenue per service driven by higher matured preneed revenue from the backlog, combined with a 2.0% increase in non-funeral home services performed.
• Non-funeral home preneed sales revenue decreased $1.7 million, primarily due to a reduction in general agency revenue. While non-funeral home insurance sales production increased 9.3%, a lower general agency commission rate impacted revenue quarter over quarter.
• Core general agency and other revenue increased $7.1 million. Core general agency revenue benefited from higher insurance sales production partially offset by a slightly lower general agency commission rate quarter over quarter. The current commission rate is generally stable and is trending in line with expectations.
• Comparable funeral gross profit increased $3.6 million to $103.8 million, and the gross profit percentage was 17.6% in both periods. Comparable funeral revenue increased $18.7 million which was partially offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. In addition, we experienced an increase in health insurance expense.
• Comparable funeral preneed sales production increased $18.6 million, or 6.1%, in the third quarter of 2026 compared to 2025, driven by strong increases in core and non-funeral home preneed sales production.

Comparable Cemetery Results

The table below details comparable cemetery results of operations ("same store") for the three months ended September 30, 2026 and 2025. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2025 and ending September 30, 2026.

• Total comparable cemetery revenue increased $19.4 million, or 4.0%, in the third quarter of 2026 compared to the third quarter of 2025. The increase was due to higher core revenue of $11.9 million and higher other revenue of $7.5 million.
• Core revenue increased $11.9 million, primarily driven by a $13.6 million, or 4.0%, increase in total recognized preneed revenue from higher property and merchandise and service revenue. This includes the benefit of increased trust fund income. Additionally, recognized preneed cemetery property revenue grew 1.2%, while preneed property sales production increased 4.2%. This dynamic puts near-term pressure on cemetery gross margins but builds the backlog of revenue to be recognized in future periods.
• Other revenue was $7.5 million higher, or 19.7%, compared to the prior-year quarter primarily due to an increase in endowment care trust fund income based on market performance and higher total return distributions.
• Comparable cemetery gross profit increased $1.1 million to $167.1 million. The gross profit percentage decreased from 34.3% to 33.2%. Comparable cemetery revenue increased $19.4 million, which was largely offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. Changes to our sales compensation structure, which increased guaranteed hourly wages, resulted in a higher selling compensation rate. In addition, this resulted in more selling costs being recognized in the current period rather than deferred, which will reduce selling compensation expense recognized in subsequent periods. We also experienced an increase in health insurance expense. While these elevated costs are pressuring cemetery gross margins, the growth in preneed sales production continues to strengthen our backlog with quality deferred property, merchandise and service revenue, which will benefit future periods.
• Comparable preneed cemetery sales production increased $17.0 million, or 4.8%, and was supported by a combination of increases in the number of contracts sold, higher sales averages, and a $3.7 million increase in large sales.

Other Financial Results

• Corporate general and administrative expenses were $30.6 million in the third quarter of 2026, compared to $38.3 million in the prior year. The decrease was driven primarily by lower long-term incentive compensation expense tied to total shareholder return and a favorable legal settlement.
• Interest expense was $65.0 million in the third quarter of 2026 compared to $65.7 million in the prior year, resulting in a $0.7 million decrease due to lower rates on floating rate debt more than offsetting higher balances.
• Gains (losses) on divestitures and impairment charges, net increased to $11.2 million in the third quarter of 2026 due to non-strategic asset divestitures of excess land compared to a $0.4 million net pre-tax loss in the third quarter of 2025.
• The GAAP effective income tax rate for the third quarter of 2026 was 25.1%, down from 26.9% in the prior-year quarter. On an adjusted basis, the effective tax rate was 25.3%, up from 24.1% in the prior-year quarter. The higher GAAP effective tax rate in the prior period was primarily due to a change in estimate recorded in the prior year related to the finalization of the 2024 tax return. The higher adjusted effective tax rate in the current year is primarily due to lower non-taxable gains in the cash surrender value of certain life insurance policies from lower returns in the financial markets year over year.

Net cash provided by operating activities, excluding special items, grew $29.0 million to $296.9 million in the third quarter of 2026 compared to $267.9 million in the third quarter of 2025. The increase was supported by higher operating income of $26.5 million, which included an $11.6 million favorable change in gains (losses) on non-strategic asset divestitures and impairment charges. The remaining $14.9 million increase was attributable to other components of operating income supporting cash provided by operating activities. Additionally, working capital provided a $29.9 million benefit, primarily related to the timing of an additional payroll cycle in the prior year period. These benefits were both partially offset by $15.8 million of higher cash taxes.

A summary of our capital expenditures is set forth below:

Total capital expenditures decreased $2.1 million in the current quarter, primarily due to the timing of maintenance capital expenditures and growth capital expenditures compared to the prior-year quarter.

Trust Fund Returns

Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of September 30, 2026 is set forth below:

Non-GAAP Financial Measures

Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations by adjusting for the items listed below. We also believe these measures help facilitate comparisons to our competitors' operating results.

Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. See "Cash Flow and Capital Spending" in this press release for a reconciliation of net cash provided by operating activities to net cash provided by operating activities excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.

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SOURCE Service Corporation International