SERVICE CORPORATION INTERNATIONAL ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS AND UPDATES FOURTH QUARTER OUTLOOK

Tom Ryan, Chairman and CEO of Service Corporation International

“Today, we reported adjusted earnings per share of $0.97 and adjusted net cash provided by operating activities of $296.9 million, both delivering double-digit growth compared to the prior-year quarter. Our funeral segment delivered solid results, supported by continued growth in average revenue per service and stable funeral service volumes. Our cemetery segment generated 4% growth in comparable revenue, driven by higher recognized preneed property, merchandise and service revenue. Preneed sales production remained a key contributor to our long-term growth outlook, with comparable funeral preneed sales production increasing 6% and comparable cemetery preneed sales production growing 5%. Additionally, recognized preneed cemetery property revenue grew 1%, while preneed property sales production increased 4%. This dynamic puts near-term pressure on cemetery gross margins but continues to expand our backlog with higher-margin deferred property sales, which will benefit us in future periods. Despite these positive revenue and sales trends, margins were pressured by higher healthcare costs, higher selling compensation costs and increased advertising and marketing expenditures supporting our preneed sales growth. While we expect these elevated costs to continue into the fourth quarter, as reflected in our earnings outlook, our investments in preneed sales production will drive revenue and earnings growth as sales are recognized in the future. The impact of these higher costs during the quarter was partially offset by higher trust fund income and lower corporate general and administrative expenses, primarily reflecting reduced long-term incentive compensation tied to total shareholder return. We continue to actively deploy capital across a range of strategic growth opportunities, including acquisitions, cemetery property development, real estate investments, and new funeral home construction. Our consistent cash flow generation allows us to fund these investments to support future growth while continuing to return significant capital to shareholders. Year to date, we have returned $464 million through dividends and share repurchases, reflecting our disciplined approach to creating long-term shareholder value. Our results reflect the dedication of our more than 25,000 associates who make a difference in the lives of families every day. I am grateful for their unwavering commitment to providing exceptional care and service to the families and communities we serve.”