Q4 2025 Service Corporation International Earnings Call Transcript
Key Points
- Service Corp International (SCI) reported an 8% increase in adjusted earnings per share for the fourth quarter, reaching $1.14 compared to $1.06 in the prior year.
- The company experienced solid revenue and gross profit growth in both the funeral and cemetery segments, contributing to a 9% increase in annual adjusted earnings per share.
- Preneed sales production increased by $29 million or about 11% over the fourth quarter of 2024, indicating strong sales momentum.
- SCI's cemetery segment saw a 3% increase in gross profit and a 70 basis point increase in gross profit percentage, achieving an operating margin percentage over 36%.
- The company has a strong liquidity position with a new $2.5 billion bank credit facility, enhancing liquidity by over $350 million.
- Funeral gross profit declined by almost $4 million, with the gross profit percentage decreasing by 70 basis points to about 21%.
- The company experienced a 1.9% decrease in core funeral services performed for the quarter.
- Core general agency and other revenue declined by $8 million or almost 13%, primarily due to a lower general agency commission rate.
- Corporate G&A expense increased by $19 million over the prior year quarter, primarily due to the prior year benefiting from a legal reserve reduction.
- Funeral volumes are expected to be flat to slightly down in 2026, with potential challenges if volumes decline further.
Good day, and welcome to the SCI fourth 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. AVP of Treasury and Investor Relations. I'd like to welcome everyone to our fourth quarter earnings call. We will have some prepared remarks about the quarter from Tom and Eric in just a minute. But before that, let me go over our 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 release and in
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