Service Corp. International Q4 Revenue $1.11B, EPS $1.14; 2026 EPS Guide Misses Estimates
Service Corp. International reported Q4 revenue of $1.11 billion, up 1.7% year-on-year, and adjusted EBITDA of $368.7 million (33.2% margin), slightly above estimates, while adjusted EPS matched forecasts at $1.14. For FY2026, management forecast a midpoint EPS of $4.20, missing consensus by 1.3% and anticipating flat funeral volumes.
1. Q4 Financial Results
Service Corp. International posted Q4 revenue of $1.11 billion, up 1.7% year-on-year, and adjusted EBITDA of $368.7 million, yielding a 33.2% margin and beating estimates by 1%. Adjusted EPS of $1.14 matched consensus, while operating margin held at 24.8% and total funeral services performed remained steady at 89,117.
2. Guidance and Outlook
For fiscal 2026, management set adjusted EPS guidance at a $4.20 midpoint, 1.3% below analysts’ forecasts, and expects flat to slightly lower funeral volumes with average revenue per case rising in line with inflation. The company flagged ongoing uncertainty in service demand and emphasized cost controls and targeted investments to support growth.
3. Operational Drivers and Strategy
The transition to insurance-funded preneed contracts increased immediate commission recognition but reduced high-margin merchandise revenue, while sales counselor compensation shifts and higher selling costs aimed to improve retention. Preneed production grew in the low double digits and new digital and cemetery inventory initiatives, alongside labor efficiency measures, are poised to offset headwinds from modest cremation mix increases.