Service Corporation International Q3 2026 Earnings Recap

SCI shares fell 8.7% after earnings, with management acknowledging that revenue and earnings were below internal expectations. Lower-than-expected funeral volumes, weaker general agency commission rates, higher costs and larger cemetery-sales deferrals weighed on performance; cemetery margin pressure added to the concerns.

Key Takeaways

• Adjusted EPS was $0.97, up more than 11% from $0.87 a year earlier, but below management’s expectations.
• Comparable core funeral volume declined 0.5% in the quarter; year-to-date volume was down 3.1%. Core average revenue per service rose 2.8%.
• Comparable funeral revenue increased $19 million, or just over 3%, while gross profit rose about $4 million and gross margin was flat at approximately 18%. Fixed costs grew 3%, and higher selling compensation and promotion costs also weighed on profit.
• Comparable cemetery revenue grew $19 million, or about 4%, but gross profit increased only $1 million as margin fell 110 basis points to approximately 33%. Fixed costs rose 4%, slightly above expectations.
• Preneed sales production increased 6% for funeral and 5% for cemetery. Adjusted cash provided by operating activities rose $29 million to $297 million.