Service Corporation International

XMUN:SVC

EPS: SCI reported second-quarter earnings per share of $0.90, up from $0.88 a year ago, helped by stronger cemetery results and lower G&A, but partly offset by weaker funeral profitability and financing items.

Sales momentum: Comparable preneed cemetery sales production rose 8% and comparable preneed funeral sales production rose 7%, showing continued strength in the company’s sales strategy.

Cash flow: Adjusted operating cash flow came in at about $239 million, up $71 million or 42% year over year, and management raised full-year cash flow guidance.

Outlook: Management kept the $4.20 midpoint of full-year earnings guidance and narrowed the range to $4.10 to $4.30, while saying second-half 2026 earnings should grow at a double-digit rate.

Margins: Funeral margins were pressured by lower volume, higher selling compensation tied to the shift toward insurance-funded preneed sales, and a one-time urn delivery timing issue, but management expects these pressures to ease in the second half.

Capital returns: SCI returned $172 million to shareholders in the quarter through buybacks and dividends, and said it still has more than $500 million of repurchase capacity.

Balance sheet: The company ended the quarter with about $1.6 billion of liquidity and net debt to EBITDA of 3.77x, near the midpoint of its target range.