Service Corporation International (SCI) Q2 2026 earnings summary

Executive summary

• Q2 2026 adjusted EPS was $0.90, up from $0.88 in Q2 2025, driven by cemetery revenue and gross profit growth, strong preneed sales, and lower corporate expenses, partially offset by lower funeral gross profit and higher selling compensation costs.

• Net income attributable to common stockholders for Q2 2026 was $124.8 million, up from $122.9 million in Q2 2025.

• Revenue for Q2 2026 was $1.10 billion, up 3.6% year-over-year, with consolidated revenue increasing by $37.8 million (4%).

• Strong preneed sales momentum: comparable preneed cemetery sales production grew 8% and preneed funeral sales production grew 7% year-over-year, supporting a $17.6 billion backlog.

• $363 million returned to shareholders year-to-date through dividends and share repurchases.

Financial highlights

• Adjusted operating cash flow for Q2 2026 was $239 million, up 42% year-over-year, mainly due to lower cash taxes from renewable energy investment credits.

• Free cash flow for Q2 2026 reached $158.7 million, compared to $99.4 million in Q2 2025.

• Net cash provided by operating activities for the first six months was $572.4 million, up $94.8 million year-over-year.

• Maintenance CapEx for 2026 raised to $335 million; adjusted free cash flow guidance for 2026 increased to $750 million, up 18% from 2025.

• Liquidity at quarter-end was $1.6 billion, with net debt to EBITDA at 3.77x.

Outlook and guidance

• Annual adjusted EPS guidance for 2026 confirmed at $4.10–$4.30, with the $4.20 midpoint.

• Adjusted operating cash flow guidance midpoint for 2026 raised by $50 million to $1.085 billion.

• Maintenance CapEx guidance increased by $10 million to $335 million.

• Cash taxes expected in 2026 are $120 million at the midpoint of guidance.

• Management expects continued growth in cemetery preneed sales and backlog, with strong preneed production supporting future revenue.