Carriage Services Inc

NYSE:CSV

Volume pressure: Funeral volume fell as mortality trends stayed below normal for the first half, with comparable funeral volume down 3.5% in Q2 and 4.7% for the first six months.

Margins held up: Despite lower volume, adjusted EBITDA rose 3.1% to $33.3 million and adjusted diluted EPS increased 5.4% to $0.78, showing stronger operating leverage.

Pricing improved: Funeral home average revenue per contract rose 3.7%, and average price per pre-need interment right increased 17.3%, helping offset weaker volumes.

Guidance reset: Management trimmed full-year revenue outlook to $435 million-$445 million mainly because of softer first-half demand and acquisition timing, while keeping profitability guidance relatively steady.

July rebound: Management said funeral volume turned positive in July, describing the growth as strong low single-digit, but cautioned that one month does not make a trend.

M&A active: The acquisition pipeline remains “busy and active,” but timing pushed some expected 2026 deal contribution later; the company said it is still disciplined on valuation.

Capital discipline: Leverage improved to 4x, borrowing costs fell, and the company continued investing in cemetery development and maintenance while keeping expense control tight.