Service beats top-line and bottom-line estimates; updates FY25 outlook

* Service press release [https://seekingalpha.com/pr/20285249-service-corporation-international-announces-third-quarter-2025-financial-results-confirms] (SCI [https://seekingalpha.com/symbol/SCI]): Q3 Non-GAAP EPS of $0.87 beats by $0.04.
* Revenue of $1.06B (+5.0% Y/Y) beats by $20M.
* Comparable total funeral sales average grew 3.1% over the third quarter of 2024 supported by 13.4% growth in non-funeral home sales average
* Cemetery preneed sales production increased 9.6% in the current quarter.
* Net cash provided by operating activities was $252.3 million in the current quarter of 2025 compared to $263.8 million in the prior year quarter, due to an expected increase in cash taxes paid of $11.1 million
* Excluding special items and cash taxes paid, net cash provided by operating activities increased $10.0 million to $283.0 million.
*
UPDATED 2025 GUIDANCE

The $3.85 midpoint of our annual guidance range for 2025 detailed below is confirmed with a more narrow range expected for earnings per share of $3.80 to $3.90. Our cash flow outlook has increased to a range of $910 million to $950 million due to lower cash taxes and working capital timing. Our outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.

(Dollars in millions, except per share amounts)

2025 Outlook

Revised 2025 Outlook

Diluted earnings per share excluding special items (1)

$3.70 - $4.00 VS. CONSENSUS OF $3.84

$3.80 - $3.90

Net cash provided by operating activities excluding special items andcash taxes (1)

$1,025 - $1,085

$1,045 - $1,085

Cash taxes expected in 2025 (at the midpoint of Diluted earnings pershare guidance)

$145

$135

Net cash provided by operating activities excluding special items (1)

$880 - $940

$910 - $950

Capital improvements at existing field locations

$130

$130

Development of cemetery property

$160

$160

Digital investments and corporate

$25

$25

Total maintenance, cemetery development, and other capitalexpenditures (Maintenance capital expenditures)

$315

$315

Click to enlarge

MORE ON SERVICE

* Service Corporation International: You Might Want To Hold This One Until Your Last Breath [https://seekingalpha.com/article/4831035-service-corporation-international-hold-this-one-until-your-last-breath]
* Service Non-GAAP EPS of $0.87 beats by $0.04, revenue of $1.06B beats by $20M [https://seekingalpha.com/news/4510739-service-non-gaap-eps-of-0_87-beats-by-0_04-revenue-of-1_06b-beats-by-20m]
* Service Q3 2025 Earnings Preview [https://seekingalpha.com/news/4509575-service-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Service [https://seekingalpha.com/symbol/SCI/ratings/quant-ratings]
* Historical earnings data for Service [https://seekingalpha.com/symbol/SCI/earnings]