On July 31, Service Corporation International reports second quarter results.
Highlights included:
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Revenue grew $31.4 million over the second quarter of 2024.
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Gross profit increased $13.5 million, or 5%, in the current quarter.
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Comparable total funeral sales average grew 3.1% over the second quarter of 2024.
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Cemetery preneed sales production increased 5.3% in the current quarter.
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GAAP earnings per share was $0.86 compared to $0.81 in the second quarter of 2024 resulting in 6% growth over the prior year quarter.
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Adjusted earnings per share was $0.88 compared to $0.79 in the second quarter of 2024 resulting in 11% growth over the prior year quarter.
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Net cash provided by operating activities was $166.5 million in the second quarter of 2025 compared to $196.9 million in the prior year quarter, affected by an expected increase in cash taxes paid of $84.3 million.
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Excluding special items and cash taxes paid, net cash provided by operating activities increased $32.7 million, or over 14%.
Tom Ryan, the company’s chairman and CEO, commented on the second quarter performance: “We are pleased to report adjusted earnings per share of $0.88, an impressive increase of 11% over the prior year quarter. Higher funeral revenue and effective fixed cost management drove significant growth in comparable funeral gross profit of 14.8% and solid margin expansion. Funeral revenue increased on a higher average revenue per funeral and higher core general agency revenue as we benefited from the change in our preferred preneed insurance provider.
In the cemetery segment, we continue to focus on sales production, which led to increases in both preneed and at-need sales production. A 5.3% increase in preneed sales production resulted in a modest increase in cemetery revenues during the quarter, and the preponderance of this increase will benefit us in future periods, as undeveloped property sold is constructed and recognized.
We remain committed to our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value. With these results, we believe we are well positioned to achieve our 2025 targeted results. I would like to extend a very special thank you to our 25,000 associates for their ongoing commitment to providing excellent service to our client families.”
SCI confirmed its annual guidance range for 2025 for earnings per share of $3.70 to $4. Its cash flow outlook has increased to $880 million to $940 million due to lower cash taxes and stronger working capital benefits. Its outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of its guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.
Read more in the full news release.
