On Feb. 12, Â Service Corporation International —Â the largest provider of death-care products and services in North America — reported adjusted earnings per share of $1.06 for the fourth quarter, which is a 14% increase over the same period last year.
Other highlights included:
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Revenue increased $37 million, or 4%, over the fourth quarter of 2023 with growth in both the funeral and cemetery segments.
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Comparable preneed cemetery sales production grew 2.0% in the current quarter.
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Comparable core funeral sales average grew 2.7% in the current quarter.
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Gross profit increased $18 million, or 6%, over the same quarter of last year.
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GAAP earnings per share of $1.04 grew 12% for the fourth quarter compared to the prior year quarter and were flat to prior year at $3.53 for full year 2024.
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GAAP operating cash flow was $264 million and $945 million, for the fourth quarter and full year 2024, respectively.
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Adjusted operating cash flow was $977 million for the full year 2024, just above the high end of our expectations.
- 2025 adjusted earnings per share guidance is $3.70 to $4.00, with a midpoint of $3.85, which is within our long-term growth framework of 8%-12%.
Tom Ryan, the company’s chairman and CEO, commented on fourth quarter results:
“We are pleased to report a strong finish for the year with adjusted earnings per share growth of 14% in the fourth quarter of 2024. This was driven by revenue growth in both our segments, which translated into solid gross profit performance and margin expansion. Growth in cemetery preneed sales production and higher funeral general agency revenue more than offset a decline in services performed during the quarter. For the full year of 2024, we reported adjusted earnings per share of $3.53 and adjusted operating cash flow of $977 million. Our robust cash flow for the year allowed us to invest $181 million into the acquisition of 26 funeral homes and 6 cemeteries in major metropolitan markets and $62 million into real estate transactions to expand our footprint of funeral homes and cemeteries in our existing markets.
Looking ahead to 2025, we believe we are well positioned to deliver solid results, with the midpoint of our expected adjusted earnings per share growth within our long-term targeted growth range of 8% to 12%.
I would like to thank our 25,000 associates for their unwavering commitment to providing excellent service to our client families. Through their hard work, SCI remains in a position of financial strength affording flexibility for continued growth. We continue to believe in our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value.”
OUTLOOK FOR 2025
The company also shared details on its forecast for 2025, stating:
“Our 2025 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%. Our outlook for net cash provided by operating activities excludes special items relating to the payments of certain estimated legal charges recognized in the fourth quarter of 2022 and payments for the restructuring charge recognized in the fourth quarter of 2024.”
Read more in the full news release.
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