On Feb. 25, Carriage Services announced its financial results for the fourth quarter and year ended Dec. 31, 2025.
Company Fourth Quarter and Full Year Highlights:
-
GAAP diluted EPS of $0.77 compared to $0.62 in the prior year quarter, resulting in an increase of 24.2%;
-
Adjusted diluted EPS of $0.75 compared to $0.62 in the prior year quarter, resulting in an increase of 21.0%;
-
Total revenue grew 8.0% over the prior year quarter, primarily driven by an increase in funeral operating contract volume of 6.8% and a 25.5% growth in preneed cemetery sales production;
-
GAAP diluted EPS of $3.25 compared to $2.10 in the prior year, resulting in growth of 54.8%;
-
Adjusted diluted EPS of $3.20 compared to $2.65 in the prior year, resulting in an increase of 20.8%;
-
Total revenue grew 3.3% over the prior year, primarily driven by a 2.3% increase in funeral operating contract volume and 13.4% growth in preneed cemetery sales production;
-
Financial revenue increased 17.7% over the prior year, primarily driven by a 27.4% increase in insurance-funded preneed funeral contracts sold resulting in an increase in general agency commission revenue;
-
Completed the strategic acquisition of two businesses that generated more than $15 million in revenue in 2024 and divested certain non-core assets throughout the year driving our leverage ratio down to 4.0x;
-
The company’s guidance for 2026 is $440-$450 million in total revenue, adjusted consolidated EBITDA of $135-140 million, adjusted diluted EPS of $3.35-$3.55 and adjusted free cash flow of $40-$50 million, which assumes $25-$30 million in capital expenditures.
Carlos Quezada, vice chairman and CEO (pictured at top), stated, “We are very pleased with our 2025 fourth quarter and full year performance. In the fourth quarter, total funeral operating revenue increased by 9.6%, primarily reflecting growth in funeral operating contract volume, while total cemetery operating revenue grew 18.4%, primarily driven by a strong performance in preneed cemetery sales production. Operating income grew 16.8% and adjusted consolidated EBITDA grew by 11.0%, while adjusted consolidated EBITDA margin grew by 80 bps to 30.8%, all versus the same quarter last year.
For the full year, Carriage delivered a strong financial performance, highlighted by GAAP diluted EPS growth of nearly 55% and adjusted diluted EPS growth of 21%, reflecting disciplined execution across our business. Operating revenue increased 6.1%, driven by balanced growth in both funeral and cemetery operations through higher contract volumes, improved pricing discipline, and continued strength in preneed cemetery sales production of 13.4% over the prior year. We also experienced impressive growth in financial revenue, primarily driven by a 27.4% increase in insurance-funded preneed funeral contracts sold. During the year, we completed strategic acquisitions of two high-quality businesses generating more than $15 million in annual revenue, while divesting non-core assets and further strengthening our balance sheet, ending the year with a 4.0x leverage ratio. Importantly, our results reflect a renewed focus on service excellence, empowering our teams to deliver premier experiences while driving sustainable performance. With this performance, Carriage concludes three consecutive years of consistent financial improvement while strengthening our balance sheet and positioning the Company well for its next phase of disciplined growth and long-term value creation,” Quezada concluded.
Read the full earnings release.
