Carriage Services Reports Revenue Increase to $107.1 Million and Net Income Surge to $20.9 Million in Q1 2025

Carriage Services, Inc. reported a notable increase in financial performance for the first quarter of 2025, with total revenue reaching $107.1 million, up from $103.5 million in the same period last year. The company's net income surged to $20.9 million, a significant rise from $7.0 million in the prior year, resulting in basic earnings per share of $1.35 compared to $0.46. This growth was attributed to a combination of higher average revenue per funeral contract and increased sales in the cemetery segment, despite a slight decline in the number of preneed interment rights sold.

The company experienced a 2.3% increase in average revenue per funeral contract, which rose to $5,710, alongside a 0.7% increase in funeral contract volume. In the cemetery operations, the average price per preneed interment right sold increased by 11.8% to $5,419, although the number of rights sold decreased by 5.8%. The overall gross profit for the quarter was $37.8 million, slightly up from $37.3 million in the previous year, reflecting the impact of strategic pricing and operational efficiencies.

Operationally, Carriage Services executed several divestitures, selling two funeral homes and three cemeteries for a total of $15.8 million, which contributed a gain of $5.9 million. The company also sold real property for $2.9 million, resulting in an additional gain of $2.0 million. These divestitures are part of the company's ongoing strategy to streamline operations and focus on core business areas. The company’s total assets decreased slightly to $1.275 billion from $1.280 billion at the end of 2024, while total liabilities also saw a reduction to $1.052 billion.

In terms of liquidity, Carriage Services ended the quarter with $4.6 million in cash, a significant increase from $1.2 million at the beginning of the year. The company reported net cash provided by operating activities of $13.8 million, down from $19.7 million in the prior year, primarily due to unfavorable working capital changes. The company’s credit facility borrowings decreased to $120 million from $137 million, reflecting a proactive approach to managing debt levels.

Looking ahead, Carriage Services remains focused on executing its strategic objectives, including enhancing market share and managing costs amid ongoing economic uncertainties. The company is closely monitoring inflationary pressures and consumer spending trends, which could impact future performance. Management expressed confidence in the company’s ability to navigate these challenges while continuing to deliver value to shareholders through disciplined capital allocation and operational excellence.