Service Corporation International Reports $1.074 Billion Revenue and $142.9 Million Net Income in Q1 2025

Service Corporation International (SCI) reported a total revenue of $1.074 billion for the first quarter of 2025, marking a 2.5% increase from $1.045 billion in the same period of 2024. The company's net income attributable to common stockholders rose to $142.9 million, or $0.98 per diluted share, compared to $131.3 million, or $0.89 per diluted share, in the prior year. This increase in profitability was driven by higher funeral gross profit, which benefited from an increase in services performed and average revenue per service, despite a slight decline in cemetery gross profit.

In terms of operational performance, SCI's funeral revenue increased to $639.5 million, up from $604.7 million year-over-year, with comparable funeral revenue rising to $625.9 million. The average revenue per service also improved, reaching $5,743, a 2.3% increase from the previous year. However, cemetery revenue saw a decrease to $434.7 million from $440.6 million, primarily due to a decline in recognized preneed property revenue. The company performed 95,624 funeral services in the quarter, reflecting a 1.8% increase compared to the previous year.

Strategically, SCI continues to focus on expanding its market presence through acquisitions and new construction. As of March 31, 2025, the company operated 1,489 funeral service locations and 496 cemeteries across the United States and Canada. The company reported a backlog of $15.9 billion in future revenue from preneed sales, which is expected to provide stability and predictability in cash flows. Additionally, SCI has been transitioning its preneed contracts from trust-funded to insurance-funded models, which is anticipated to enhance revenue recognition in the future.

The company’s financial position remains strong, with cash flow from operating activities amounting to $311.1 million for the first quarter, up from $220.1 million in the same period last year. SCI's total assets were reported at $17.316 billion, with total liabilities of $15.664 billion, resulting in total equity of $1.652 billion. The company also maintained a leverage ratio of 3.59, within its target range of 3.5x to 4.0x, indicating a favorable debt maturity profile and adequate liquidity to support ongoing operations and shareholder returns.

Looking ahead, SCI anticipates continued growth driven by demographic trends and an increasing cremation rate, which is currently at 64.1%. The company remains committed to enhancing its service offerings and operational efficiencies to adapt to changing consumer preferences and market conditions.