SCI Tops Q2 Estimates and Lifts Cash Flow Outlook on Robust Preneed Sales

summarizeSummary

SCI posted Q2 adjusted EPS of $0.90, exceeding expectations, and raised its 2026 cash flow guidance by $50 million, driven by strong preneed cemetery sales and lower cash taxes.

check_boxKey Events · Earnings and Guidance · SCI

• Q2 Earnings Beat

  Adjusted EPS climbed to $0.90 from $0.88 a year ago, while revenue grew 4% to $1.10 billion, driven by higher funeral average revenue and an 8% increase in comparable cemetery preneed sales production.

• Cash Flow Surge

  Operating cash flow jumped 43% to $238.7 million, aided by a $64.3 million reduction in cash taxes from a renewable energy investment and strong preneed cemetery collections.

• Raised Cash Flow Guidance

  The midpoint for full-year 2026 adjusted operating cash flow guidance was raised by $50 million to $1,085 million, reflecting sustained strength in preneed cemetery collections.

• EPS Guidance Narrowed

  The 2026 adjusted EPS guidance range was narrowed to $4.10–$4.30, with the $4.20 midpoint confirmed, implying 8–12% long-term growth.

auto_awesomeAnalysis · SCI · Trade & Services

A solid Q2 beat underscores Service Corporation International's momentum, with adjusted EPS rising to $0.90 from $0.88 a year ago, fueled by higher funeral average revenue and strong cemetery preneed sales. Operating cash flow surged 43% to $238.7 million, boosted by a $64 million reduction in cash taxes from a renewable energy investment. Reflecting confidence in sustained preneed cemetery collections, management raised its full-year cash flow guidance by $50 million at the midpoint. The company also narrowed its EPS guidance range, signaling stability. With $363 million returned to shareholders year-to-date via buybacks and dividends, SCI continues to execute a balanced capital allocation strategy. The stock is trading near its 52-week high, suggesting the market anticipated the strong results.