Service Corporation International (SCI)

In the first quarter of 2025, SCI announced revenue growth of $28.8 million over the first quarter of 2024, with gross profit increasing by 6%. Diluted earnings per share (EPS) for Q1 2025 were $0.98, up from $0.89 in Q1 2024, and adjusted EPS grew by 8%. Comparable total funeral services performed grew by 1.8% and average revenue per funeral increased by 2.3% in the first quarter. GAAP operating cash flow also significantly increased to $311.1 million in Q1 2025 from $220.1 million in Q1 2024. For Q3 2025, SCI reported adjusted EPS of $0.87, surpassing forecasts, and revenue of $1.06 billion, which led to a 4.2% increase in its stock price. Cemetery preneed sales grew 10% year-over-year, and cremation rates rose to 57.3%. Management maintained its 2025 EPS guidance of $3.80-$3.90 and projected 8-12% growth for 2026. The company also announced a quarterly dividend of $0.32 per share, payable on December 31st, 2025. Despite these positive reports, the company's share price experienced a decline of 9.83% between November 25, 2024, and November 21, 2025. Insider selling activity was also noted, with President Sumner J. Waring III selling 30,300 shares on October 31st, reducing his direct ownership by 9.31%.

The demand for Service Corp. International's products and services is considered sustainable due to the essential nature of deathcare. The "pre-need" services also show a signal of continued growth as more people plan deathcare for themselves or relatives. The aging Baby Boomer population is expected to lead to an increase in deaths, which bodes well for both at-need and pre-need services in the long term. Specific explicit seasonal patterns in demand for SCI's products and services are not prominently highlighted in the available information.

Service Corporation International (SCI) is the largest provider of funeral, cemetery, and cremation services in North America, headquartered in Houston, Texas. The company operates within the Consumer Discretionary sector, specifically in the Personal Services industry, with a notable market share in both Funeral Homes and Cemetery Services. SCI's major products and services encompass a full range of deathcare offerings, including professional services related to funerals and cremations, pre-arranged funeral packages, and funeral merchandise. The company operates various brands, including Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Neptune Society, and Trident Society.

SCI's extensive geographic footprint primarily covers the United States and Canada. The company operates in 44 U.S. states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Beyond North America, SCI also has a presence in eight European countries, including England, France, and Germany, and conducts business in Singapore.

In the past year, Service Corp. International's brand reputation was impacted by a significant legal settlement. In May 2024, the California Attorney General, along with district attorneys from Alameda and Marin counties and the city and county of San Francisco, announced a settlement with SCI. The settlement, totaling $23 million in civil penalties and consumer restitution, resolved an enforcement action alleging that SCI violated California's Unfair Competition Law and False Advertising Law. The allegations stemmed from false and deceptive advertising and unlawful practices in the marketing and sale of pre-need cremation packages, particularly under its Neptune Society and Trident Society brands. The lawsuit claimed SCI misled consumers about its trusting practices, refund policy, and veterans' burial benefits and cremation, and that it often refunded less than half of a consumer's money when a Standard Plan purchaser requested a refund.

Service Corp. International (SCI) has a diverse ownership structure. Institutional investors hold a significant portion of the company's stock, with approximately 73.84% to 85.53% held by institutions. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Baillie Gifford & Co, Select Equity Group, L.P., Fmr Llc, iShares Core S&P Mid-Cap ETF, State Street Corp, T. Rowe Price Capital Appreciation Fund, Swedbank AB, and Morgan Stanley. Individual investors hold around 2.9% to 22.30% of the stock, while insiders own approximately 2.9% to 4.4%.