What SCI’s Latest Earnings Reveal About the Direction of Funeral Service

Every quarter, the financial results of Service Corporation International offer a useful lens into the broader funeral profession. With more than 1,900 funeral homes and cemeteries across North America, the company’s scale often reflects trends that many independent funeral directors are also experiencing.

The company’s fourth-quarter results and earnings call on Feb. 11 painted a picture of a profession  that is normalizing after the pandemic era, while still finding ways to grow revenue, strengthen preneed pipelines and invest heavily in the future of the profession.

For funeral directors, several themes stand out.

Funeral Volumes Are Normalizing After an Unusual Period

One of the clearest insights from the call was leadership’s view that death rates are returning to a more typical pattern after several years of volatility.

SCI Chairman and CEO Tom Ryan described the last few years as an unusual period driven by excess mortality from a variety of causes.

“We saw increases in drug overdoses, suicides, traffic fatalities, murders, lack of cancer screenings … and we couldn’t explain this excess volume that has occurred even beyond COVID.”

Now those factors appear to be easing.

He noted that several factors that had driven excess deaths in recent years are improving, with drug overdoses, suicides, traffic fatalities and homicides all declining, while cancer screenings have returned to normal levels and cancer deaths are beginning to fall.

As a result, funeral volumes are stabilizing across the country.

“As I think about 2026, we think (the death rate) is probably going to be flat to slightly down,” he said on an earnings call with Wall Street analysts.

However, longer-term demographic models remain favorable.

“As you get out to 2027, 2028, 2029, we expect to see funeral volumes increase,” he said.

For funeral professionals, the message is clear: the pandemic surge in case volume was temporary, the “pull forward” effect is largely over and the industry is now returning to normal demographic patterns.

Revenue Per Service Is Becoming the Key Metric

While volumes may be flattening, SCI continues to grow financially.

The company reported fourth-quarter adjusted earnings per share of $1.14, an 8% increase from $1.06 a year earlier. For the full year, adjusted EPS reached $3.85, up 9% from $3.53.

Chief Financial Officer Eric Tanzberger noted that growth was driven by moderate improvements across both the funeral and cemetery segments.

At the same time, funeral profitability faced some pressure.

“Funeral gross profit declined by almost $4 million, while the gross profit percentage declined by 70 basis points to just about 21%.”

Part of the reason involves changes in sales compensation and accounting, SCI executives said.

For funeral homes broadly, the implication is familiar: financial performance increasingly depends on service value rather than case volume – especially in the context of a rising cremation rate.

“Within our funeral segment, we expect flat to slightly down funeral volume… with the average revenue per case growing at inflationary rates,” Ryan said.

Preneed Sales Continue to Build Long-Term Stability

One of the most encouraging indicators from the earnings call was the continued momentum in preneed.

SCI expects preneed funeral production to grow in the low- to mid-single-digit range across both its core funeral homes and its direct-to-consumer brand.

Cemetery advance sales are also expected to expand — in the low to mid-single-digit percentage range.”

For funeral professionals, this highlights an important strategic reality: preneed remains one of the most powerful drivers of long-term stability in the profession.

Companies that successfully build advance planning relationships are better positioned to stabilize future call volumes and strengthen community ties.

Cemeteries Continue to Show Strong Momentum

While funeral operations remain the foundation of most deathcare businesses, SCI’s results reinforce the growing importance of cemetery operations.

The company expects cemetery revenue to grow between 2% and 5% in 2026, supported by strong preneed sales activity.

Cemetery teams are also focusing heavily on cremation memorialization opportunities, including greater use of digital media and educational tools.

“We’re doing a lot of things as it relates to media… to create that awareness and hopefully drive some opportunities in that market.”

Significant Investment in the Future of Deathcare

SCI also continues to invest heavily in its physical locations and growth opportunities.

In the fourth quarter alone, the company generated $213 million in adjusted operating cash flow, allowing the company to continue investing back into the business.

For the full year, total capital investment reached $508 million, including:

• $328 million in maintenance capital.
• $79 million in growth capital for new construction and expansion.
• $101 million in acquisitions.

The company plans to invest an additional $75 million to $125 million toward acquisitions in 2026.

What Funeral Directors Should Be Watching

Taken together, SCI’s results suggest several trends shaping the future of funeral service.

1. Death rates are normalizing.
   The unusual mortality patterns following COVID appear to be easing.
2. Revenue per service is increasingly important.
   With volumes stabilizing, profitability depends on service value and merchandising.
3. Preneed remains a strategic priority.
   Advance planning continues to build stability and long-term relationships.
4. Cemeteries are becoming even more important.
   Memorialization opportunities — especially for cremation families — are expanding.
5. Consolidation will continue.
   Large operators remain active buyers of funeral homes and cemeteries.

While the numbers may fluctuate from quarter to quarter, the underlying mission of funeral service remains the same: helping families create meaningful ways to honor life and remember those they love.

Carriage Services’ fourth-quarter earnings offer another window into how the funeral profession is evolving.

Quarterly highlights included:

• GAAP diluted EPS of $0.77 compared to $0.62 in the same period last year, resulting in an increase of 24.2%.
• Adjusted diluted EPS of $0.75 compared to $0.62 in the same period last year, resulting in an increase of 21%.
• Total revenue grew 8.0% over the same period last year, primarily driven by an increase in funeral operating contract volume of 6.8% and a 25.5% growth in preneed cemetery sales production.

In its news release and on a conference call with investors on Feb. 25, company leaders highlighted key trends, including a normalization in death rates, a  renewed focus on preneed sales, and a disciplined approach to acquisitions and cost management.

For independent funeral homes, the company’s results reveal several insights about where the profession may be headed.

A Return to More Typical Mortality Patterns

Like SCI, Carriage Services continues to navigate the aftermath of the pandemic-era surge in mortality.

Funeral volumes have moderated in recent years, and leadership acknowledged that the profession is now adjusting to more typical patterns.

At the same time, the company’s financial performance demonstrates how funeral businesses are adapting to these shifts by focusing on service value and operational efficiency.

Revenue Growth Is Being Driven by Service Value

Even as funeral volumes fluctuate, one of the most important trends continues to be growth in average revenue per service.

Carriage reported total revenue of about $404 million, representing roughly 5.7% growth over the previous year, driven in part by higher average revenue per funeral contract.

The company also reported a 3.1% increase in average revenue per funeral contract in 2025, reinforcing a pattern seen across much of the profession.

That trend reflects several underlying dynamics:

• Inflation-related price adjustments.
• Greater personalization of services.
• More effective merchandising.
• Increased focus on value rather than volume.

Preneed Remains a Powerful Growth Engine

Another important takeaway from Carriage’s results is the continued momentum in preneed sales — particularly in the cemetery segment.

The company reported a 26.7% increase in consolidated cemetery preneed sales in 2025, including a significant rise in both the number of property sales and the average price per interment right.

This growth was driven by:

• A 22.9% increase in preneed interment rights sold.
• A 7.3% increase in the average price per interment right.

For funeral professionals, this underscores a critical point: preneed is still one of the most powerful tools for long-term stability in the funeral profession.

Discipline in Cost Management Matters

Another theme emphasized by Carriage leadership is the importance of operational discipline.

Over the past two years, the company has focused heavily on strengthening its balance sheet and improving financial efficiency.

That effort has included paying down more than $100 million in debt, allowing the company to reposition itself for future growth initiatives.

As Vice Chairman and CEO Carlos Quezada explained during the earnings call:

“After over two years of disciplined capital allocation … we are excited to return to our long-term strategy of adding shareholder value through high-quality acquisitions.”

For independent funeral homes, the takeaway is straightforward: financial discipline and strong balance sheets are becoming increasingly important in an industry experiencing consolidation.

Strategic Acquisitions Are Back on the Agenda

Like many consolidators in funeral service, Carriage Services is again pursuing acquisitions after a period focused on debt reduction.

During the earnings call, Quezada noted the company is returning to its strategy of acquiring high-performing funeral businesses.

This suggests that acquisition activity across the profession is likely to remain active, particularly for firms with strong community reputations and consistent financial performance.

For independent funeral home owners, it also signals that the market for quality businesses remains strong.

Looking Ahead: What Funeral Directors Should Watch

Carriage Services’ results highlight several broader trends that are likely to shape the funeral profession in the coming years.

1. The industry is adjusting to post-pandemic mortality levels.
   Funeral volumes are stabilizing after the unusual patterns seen during COVID.
2. Revenue per service continues to rise.
   Pricing adjustments and service personalization are increasing the value of each call.
3. Preneed remains a strategic priority.
   Advance planning programs are driving both cemetery and funeral growth.
4. Consolidation is continuing.
   Public companies and regional firms remain active buyers of funeral homes.
5. Financial discipline matters more than ever.
   Strong balance sheets and efficient operations are becoming competitive advantages.

The Bottom Line

The latest results from Carriage Services reinforce a key reality about the funeral profession: while call volumes may fluctuate from year to year, the fundamentals of the business remain strong.

Families continue to seek meaningful ways to honor their loved ones, and funeral homes that focus on service quality, advance planning, and operational excellence are well positioned to succeed.

For funeral professionals watching industry trends, Carriage’s performance offers a clear signal that the profession is not standing still — it is adapting and evolving.

Ever Wonder What a Cartel Leader’s Funeral Looks Like?

The head of one of Mexico’s most powerful criminal organizations was laid to rest March 2 in the western state of Jalisco, the region where his cartel first rose to prominence, with the funeral featuring a gleaming gold-colored casket, large floral displays, and a visible security presence in the surrounding area, KTSA.com reported.

According to a federal official, Nemesio Oseguera Cervantes — commonly referred to as “El Mencho”— was buried at a cemetery in Zapopan, a suburb of Guadalajara.

A local journalist reported that the number of floral tributes was so large that several trucks were required to transport them to the cemetery. The funeral procession itself included dozens of attendees, many holding black umbrellas despite clear weather. A band performing traditional Mexican regional music accompanied the procession.

Authorities did not officially confirm the burial site. The official who provided details spoke on condition of anonymity, noting they were not authorized to publicly discuss the matter. The Attorney General’s Office of Mexico declined to comment on the location, citing security concerns.

In the days leading up to the burial, security was tightened near a funeral home where numerous floral tributes had been delivered. Most arrangements arrived without identification. Some, however, incorporated the image of a rooster—a symbol linked to Oseguera Cervantes, who was sometimes nicknamed the “Lord of the Roosters.”

Authorities say the cartel leader died just over a week earlier during a military operation carried out by the Mexican Army. The raid targeted Oseguera Cervantes while he was being sought by security forces. He had been one of the most wanted figures in the country and carried a $15 million reward from the U.S. Department of State for information leading to his capture.

Read more.

Philadelphia Launches Fund to Help Families of Homicide Victims Cover Funeral Costs

The city of Philadelphia has introduced a new financial assistance program designed to help families pay for funeral expenses after a homicide, becoming the first municipality in the United States to establish a fund specifically for that purpose, NBC News 10 Philadelphia reported.

The initiative, called the Homicide Victim Funeral Assistance program, will provide eligible families with up to $2,000 to help cover funeral and burial costs for individuals killed within the city.

City officials said the program was created to ease the financial burden many families face immediately after a violent loss. Cherelle Parker said the city recognized that funeral costs often arise at the same time families are dealing with intense grief and other challenges. She said the new fund is intended to provide prompt financial relief while ensuring loved ones can be laid to rest respectfully.

Philadelphia plans to allocate about $600,000 each year to support the program.

The city program will supplement assistance already available through the Pennsylvania Victims Compensation Assistance Program, which can provide up to $6,500 toward funeral and burial expenses for eligible victims’ families.

Read more.

Pennsylvania Funeral Director, Funeral Home Suspended for Two Years by State Board

A funeral director in Blair County, Pennsylvania, along with the funeral home he operates, has received a two-year suspension after state regulators concluded that required services were not properly delivered to families, Channel 6 WJAC reported.

The disciplinary action stems from a final order issued by the Pennsylvania State Board of Funeral Directors. According to the order, Todd T. Thompson, who operates the Todd Thompson Funeral Home in Roaring Spring, did not provide death certificates to two families within a reasonable timeframe despite having received payment.

Regulators determined that one family reportedly waited more than a year before receiving copies of the death certificate. Another family allegedly did not receive the documents for roughly eight months, even after making numerous phone calls and reaching out to a state senator for assistance.

As a result of the findings, both Thompson’s personal license and the funeral home’s license were suspended for two years. The suspension took effect on February 23.

In addition to the suspension, Thompson has been directed to pay $2,000 in fines and more than $1,000 to cover the costs associated with the investigation.

Apply for NFDA’s 2026–27 Emerging Leaders Program

The National Funeral Directors Association is accepting applications through April 30 for the 2026–27 National Emerging Leaders Program, a year-long leadership development experience designed to prepare the next generation of funeral service leaders.

Each year, a select group of 20 emerging professionals is chosen to take part in this collaborative learning experience that combines in-person training, virtual education sessions and mentorship opportunities.

Created to support talented early-career professionals, the National Emerging Leaders Program equips participants with the leadership skills, professional connections and strategic insights needed to thrive in today’s evolving funeral service landscape.

The 2026–27 program will begin with a kick-off retreat at NFDA headquarters in Brookfield, Wisconsin, June 21–23, 2026, and conclude with graduation during the 2027 NFDA Leadership Conference.

Throughout the year, participants will take part in approximately seven virtual learning sessions featuring both funeral service experts and leadership professionals from outside the industry. Program topics include mentorship and professional development; ethical leadership; employee relations; collaborative decision-making; strategic planning; servant leadership; communication skills; and small business ownership.

The program is open to early-career funeral professionals licensed in the United States or Canada, regardless of NFDA membership status. Applicants must be employed full-time at a funeral home and meet one of the following criteria:

• First-career funeral directors licensed at least three years, or
• Second-career funeral directors licensed at least one year.

Since its launch, the program has helped develop dozens of emerging leaders who now serve as leaders in their funeral homes, communities and professional associations. Past participants consistently describe the experience as career-shaping.

Participation in the program requires a $1,500 investment, which includes retreat fees, registration for the 2027 NFDA Leadership Conference, continuing education hours, educational materials and networking opportunities.

To help offset costs, participants will also receive up to $2,000 in travel reimbursement – up to $1,000 for the 2026 retreat and up to $1,000 for the 2027 Leadership Conference.

Funeral professionals interested in advancing their leadership skills and expanding their professional network are encouraged to apply. Visit NFDA.org/EmergingLeaders to learn more and submit an application.

Applications for the National Emerging Leaders Program will be accepted through April 30, 2026. Selected participants will be announced in May.

NFDA extends its appreciation to the Funeral Service Foundation for its continued support of the National Emerging Leaders Program.