Service Corporation International Reports Strong Q4 2025 Earnings Growth
Service Corporation International's stock fell by 6.12% as it crossed below the 20-day SMA, reflecting a negative market reaction despite strong earnings growth.
In Q4 2025, the company reported an 8% increase in adjusted earnings per share, reaching $1.14, and a full-year adjusted EPS of $3.85, a 9% rise from the previous year. The robust cash flow of $966 million and sustained sales growth in preneed funeral services indicate a strong competitive position, although revenue slightly missed expectations. The company anticipates adjusted EPS for 2026 to range from $4.05 to $4.35, aligning with its long-term growth target of 8% to 12%.
Despite the stock's decline, the strong earnings report and optimistic outlook for 2026 suggest that the company remains well-positioned for future growth, although market fluctuations may impact short-term performance.
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- Quarterly Dividend Declaration: Service Company (SCI) has declared a quarterly dividend of $0.34 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Dividend Yield: The forward yield of 1.7% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend will be payable on March 31, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive their earnings promptly.
- Dividend Growth Potential: According to SCI's Dividend Scorecard and Yield Chart, the consistent dividend payments suggest the company may continue to grow its dividends in the future, bolstering investor confidence.
- Quarterly Cash Dividend: Service Corporation International (SCI) has announced a quarterly cash dividend of $0.34 per share, payable on March 31, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Shareholder Record Date: The record date for this dividend is set for March 13, 2026, ensuring that shareholders who own stock by this date will receive the dividend, thereby boosting investor confidence.
- Future Dividend Outlook: The company intends to continue paying quarterly cash dividends for the foreseeable future, although the declaration of future dividends and payment dates will be subject to final determination by the Board based on financial performance, highlighting the company's focus on financial health.
- Business Scale and Services: SCI is the largest provider of deathcare services in North America, serving approximately 700,000 families annually with 1,485 funeral service locations and 500 cemeteries, demonstrating its leadership and market influence in the industry.
- Quarterly Cash Dividend: Service Corporation International (SCI) has declared a cash dividend of $0.34 per share, payable on March 31, 2026, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Shareholder Record Date: The record date for this dividend is set for March 13, 2026, ensuring that investors holding shares by this date will receive the dividend, which further bolsters investor confidence.
- Future Dividend Outlook: While the company intends to pay regular quarterly cash dividends in the foreseeable future, the declaration of future dividends and the establishment of record and payment dates are subject to the Board's quarterly review of the company's financial performance, reflecting a focus on financial health.
- Business Scale and Services: SCI is the largest provider of deathcare services in North America, serving approximately 700,000 families annually, with 1,485 funeral service locations and 500 cemeteries, underscoring its leadership position and market influence in the industry.
- Profitability Improvement: Service Corporation International (SCI) reported adjusted earnings per share of $1.14 for Q4 2025, an 8% increase year-over-year, driven by moderate revenue and gross profit growth in both funeral and cemetery segments, indicating the company's stability and profitability in the market.
- Sales Growth Dynamics: Core funeral revenue increased by $6 million year-over-year despite a 1.9% decline in core service volume, while non-funeral preneed sales revenue rose by over $2 million, showcasing strong performance in insurance-funded contract sales.
- Cash Flow Performance: The adjusted operating cash flow for Q4 reached $213 million, with full-year operating cash flow at $966 million, reflecting a $108 million increase from the previous year, demonstrating effective cash flow management and capital return capabilities.
- Future Outlook: Management guided for 2026 normalized EPS between $4.05 and $4.35, with a growth range of 5% to 13%, and anticipates low to mid-single-digit growth in funeral and cemetery sales, reflecting a cautiously optimistic view on future market conditions.
- Financial Overview: In Q4 2025, Service Corporation International reported a non-GAAP EPS of $1.14, aligning with expectations, while revenue of $1.11 billion, a 1.8% year-over-year increase, fell short by $10 million, indicating slight market demand fluctuations.
- Sales Growth: Comparable preneed funeral sales surged 11% in Q4 2024, and comparable total funeral sales averaged a 3% increase, reflecting robust market demand in the funeral services sector, despite overall revenue missing projections.
- Cash Flow Performance: GAAP operating cash flow for 2025 was $943 million, slightly down from $945 million in 2024, while adjusted operating cash flow was $966 million, demonstrating stable cash flow management despite a minor decline.
- 2026 Outlook: The company anticipates 2026 diluted EPS to range between $4.05 and $4.35, aligning with its long-term growth framework of 8%-12%, indicating confidence in future growth, although expected cash taxes of $120 million may impact net cash flow.
- Significant Earnings Growth: In Q4 2025, adjusted earnings per share rose by 8%, with full-year adjusted EPS reaching $3.85, a 9% increase from the previous year, reflecting the company's strong performance in the deathcare sector and boosting investor confidence.
- Robust Cash Flow: The company generated $966 million in adjusted operating cash flow for the full year 2025, supporting strategic acquisitions and new funeral home developments while returning $645 million to shareholders, indicating effective capital allocation.
- Sustained Sales Growth: Preneed funeral and cemetery sales grew by 6% in Q4, alongside continued improvement in average funeral revenue, reflecting the company's competitive position and stable customer demand, which is expected to drive future revenue growth.
- Optimistic 2026 Outlook: The company anticipates adjusted earnings per share for 2026 to range from $4.05 to $4.35, aligning with its long-term growth target of 8% to 12%, demonstrating confidence in future performance and ongoing growth potential.





