Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, reported results for the second quarter of 2026 on July 29.
Quarterly highlights included:
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Consolidated revenue grew $37.8 million, or 4%, over the second quarter of 2025.
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Comparable total funeral sales average grew 3% over the second quarter of 2025.
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Comparable cemetery preneed sales production increased 8% in the current quarter.
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Comparable funeral preneed sales production increased 7% in the current quarter.
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GAAP earnings per share was $0.90 compared to $0.86 in the second quarter of 2025.
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Adjusted earnings per share was $0.90 compared to $0.88 in the second quarter of 2025.
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Net cash provided by operating activities increased $72.2 million, or 43%, to $238.7 million in the current quarter compared to $166.5 million in the prior-year quarter.
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Adjusted cash provided by operating activities increased $70.5 million, or 42%, to $238.8 million in the current quarter compared to $168.3 million in the prior year.
Tom Ryan, the company’s chairman and CEO, commented on the second quarter performance:
“Today, we reported adjusted earnings per share of $0.90 and adjusted net cash provided by operating activities of $238.8 million, both ahead of the prior year and our expectations. Our funeral segment benefited from a continued strong average revenue per service which more than offset a better-than-expected 1% decline in funeral services performed. Our cemetery segment continued to perform well, generating 5% growth in comparable cemetery revenue. The growth was primarily driven by higher recognized preneed merchandise and service revenue, as well as higher other revenue, both of which reflected impressive earnings growth from our cemetery trust funds. Additionally, recognized preneed property revenue grew 2%, while preneed property production grew 7%. This dynamic puts temporary pressure on cemetery gross margins but expands our backlog with higher-margin deferred property sales, which will benefit us in future periods. Preneed funeral sales production also remained strong, increasing 7% on a comparable basis, reinforcing the long-term strength of our preneed strategy and helping to build our backlog of future revenue.
We remain focused on executing our long-term growth strategy by growing revenue, leveraging our scale, and allocating capital in a disciplined manner to create long-term shareholder value. Our consistent cash generation continues to provide the financial flexibility to invest in strategic acquisitions, expand and develop our cemetery portfolio, pursue attractive real estate opportunities, and construct new funeral homes. Thus far this year, we returned $363 million to shareholders through dividends and share repurchases, reflecting our continued commitment to balanced capital allocation. This balanced capital allocation strategy positions us to deliver sustainable growth and create long-term shareholder value.
Finally, I would like to thank our more than 25,000 associates for their unwavering commitment to serving client families with compassion, professionalism, and excellence. Their dedication is the foundation of our success and continues to distinguish SCI every day.”
2026 EPS Guidance Confirmed; Cashflow Guidance Raised
In its news release, the company stated:
“The $4.20 midpoint of our annual guidance range for 2026 detailed below is confirmed with a more narrow range expected for adjusted earnings per share of $4.10 to $4.30. Our cash flow outlook at the midpoint has increased $50 million from $1,035 million to $1,085 million due to stronger cemetery preneed cash receipts. Additionally, we increased our total maintenance capital expenditures by $10 million to $335 million. 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%.”
Read the full earnings announcement here.
