On May 6, Carriage Services, Inc. announced its financial results for the first quarter ending March 31, 2026.
Company Highlights:
-
Consolidated cemetery revenue increased 6% over the prior year, primarily driven by a 10% increase in consolidated preneed sales production as the consolidated average price per preneed interment rights sold grew 11%.
-
Financial revenue grew 15.7% over the prior year, primarily driven by an 8% increase in consolidated insurance-funded preneed funeral contracts sold resulting in an increase in general agency commission revenue.
-
Operating income declined $6.3 million, primarily as a result of a prior year gain of $7.8 million on divestitures and the sale of real property.
-
Adjusted consolidated EBITDA grew 2.4%, or $0.8 million, demonstrating improved profitability despite lower revenue for the quarter versus the prior year.
-
GAAP diluted EPS of $0.84 compared to $1.34 in the prior year quarter, resulting in a decrease of 37.3%, primarily driven by the prior year gain on divestitures and the sale of real property.
-
Adjusted diluted EPS of $0.86 compared to $0.96 in the prior year quarter, resulting in a decrease of 10.4%, as the current quarter includes an approximately $0.08 impact from a higher tax rate.
-
Leverage ratio lowered to 4.0x from 4.2x at the same period last year.
-
Announces an “at the market” equity offering program to offer and sell its common stock with an aggregate offering price of up to $100 million.
Carlos Quezada, vice chairman and CEO (pictured at top), stated, “We are pleased by our first-quarter performance, particularly against a strong prior-year comparison. Total revenue of $106.1 million declined modestly by $0.9 million, driven primarily by a 5.8% decrease in comparable funeral volume. However, our cemetery portfolio demonstrated solid growth, finishing the quarter at $34.4 million, representing a $2 million increase in consolidated cemetery revenue, partially offsetting the volume headwinds.
Our teams demonstrated strong operational discipline, effectively managing costs, and driving improved profitability. Adjusted consolidated EBITDA increased to $33.8 million from $32.9 million last year, with margins expanding 100 basis points to 31.8%.
After three years of disciplined transformation, strengthening our processes, systems, and leadership while expanding margins and delivering improved shareholder returns, we believe Carriage is well positioned to accelerate our return to purposeful growth, which we launched last year with our strategic acquisitions in Florida. To support this next phase, we are announcing a $100 million at-the-market equity offering program that provides flexible, low-cost access to capital. Importantly, this program is not driven by immediate funding needs but rather designed to be used opportunistically to execute highly selective, accretive strategic acquisitions while also enabling us to further optimize our balance sheet, reduce leverage, and lower interest expense over time.
Our capital allocation philosophy remains unchanged, grounded in discipline and focused on deploying capital into opportunities that enhance earnings power, strengthen our competitive positioning, and generate returns above our cost of capital. We will deploy this program when we see opportunities that deliver accretive performance returns. With a stronger operating foundation and enhanced financial flexibility, we are well-positioned to pursue growth in a deliberate, strategic manner while continuing to prioritize balance sheet strength and long-term shareholder value creation.
We entered 2026 with momentum and a clear sense of purpose, and we remain confident in our ability to execute our strategic priorities and deliver sustained, long-term value for our shareholders,” concluded Quezada.
At-The-Market Program Details
In addition to announcing its financial results for the first quarter March 31, 2026, the company today announced that it has entered into an Equity Distribution Agreement with Oppenheimer & Co. Inc. and Raymond James & Associates, Inc., serving as sales agents (together, the “Sales Agents”), with respect to its at-the-market offering program under which the company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $100 million through the sales agents.
View the full earnings release.
