Q2 2025 Service Corporation International Earnings Call Transcript
Key Points
- Service Corp International (SCI) reported an 11% increase in adjusted earnings per share, reaching $0.88 compared to $0.79 in the prior year period.
- Total comparable funeral revenue increased by over $15 million, or about 3%, driven by solid growth in core revenue and core general agency revenue.
- Funeral gross profit increased by about $15 million, with a gross profit percentage increase of 210 basis points, reflecting effective cost management.
- Comparable preneed cemetery sales production increased by almost $19 million, or over 5%, indicating strong sales momentum.
- SCI raised its cash flow outlook due to stronger working capital trends and anticipated lower cash taxes from recent legislative changes.
- Preneed funeral sales production decreased by $29 million, or about 9%, due to the transition to a new preneed insurance provider.
- Non-funeral home preneed sales production decreased by $10 million, or 14%, as SCI Direct transitions from trust to insurance-funded preneed contracts.
- Cemetery gross profit decreased by $4 million, with a gross profit percentage decline of 110 basis points, due to higher selling compensation.
- Corporate G&A expenses increased, partially offsetting the gains in funeral and cemetery gross profits.
- The effective tax rate is expected to be higher, particularly in the third quarter, due to changes in tax deductibility rules.
Good day, and welcome to the SCI second quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to SCI management. Please go ahead.
Good morning. This is Trey Bocage, Director of Investor Relations and Strategic Finance. Welcome to our second quarter earnings call of 2025. We will have some prepared remarks about the quarter from Tom and Eric in just a minute. But before that, let me quickly go over the Safe Harbor language.
Any comments made by our management team that state our plans, beliefs, expectations, or projections for the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such statements.
These risks and uncertainties include, but are not limited to, those factors identified in our earnings
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