Company Overview

Service Corporation International (NYSE: SCI) stands as the largest provider of deathcare products and services in North America, providing funeral and cemetery services across the United States and Canada. Founded in 1962 and headquartered in Houston, Texas, the company has established itself as a dominant force in the death care industry.

SCI currently owns and operates more than 1,900 funeral homes and cemeteries across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. The company serves families through its workforce of approximately 25,000 associates.

Business Operations

Service Segments

SCI operates through two primary segments: Funeral and Cemetery. The company's operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses.

Funeral Services:

- Services include cremations, use of home facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, memorialization, and catering.

- Funeral merchandise offerings include burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, and other ancillary merchandise.

Cemetery Services:

- Cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options.

Brand Portfolio

SCI offers its services under several well-established brand names, including Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society. Dignity Memorial serves as the company's transcontinental brand of deathcare products and services.

Financial Performance

Recent Financial Results

2024 Full Year Performance (as of February 12, 2025):

- Revenue reached $4.19 billion in 2024, representing a 2.11% increase compared to the previous year's $4.10 billion.

- GAAP earnings per share remained flat at $3.53 for full year 2024 compared to the prior year.

- GAAP operating cash flow was $945 million for full year 2024.

Q4 2024 Performance:

- Revenue increased $37 million, or 4%, over the fourth quarter of 2023 with growth in both funeral and cemetery segments.

- GAAP earnings per share of $1.04 grew 12% for the fourth quarter compared to the prior year quarter.

- Adjusted earnings per share of $1.06 grew 14% over the fourth quarter of last year.

Q1 2025 Performance (as of April 30, 2025):

- GAAP earnings per share was $0.98 compared to $0.89 in Q1 2024, resulting in 10% growth.

- Adjusted earnings per share was $0.96 compared to $0.89 in Q1 2024, achieving 8% growth.

- Net cash provided by operating activities grew $91.0 million to $311.1 million compared to $220.1 million in Q1 2024.

Market Position

As of May 28, 2025, SCI's market capitalization is calculated by multiplying the current stock price of $77.05 by the total outstanding shares of 142,358,493, positioning it as a large-cap company in the consumer services sector.

Strategic Growth Initiatives

Acquisitions and Expansion

SCI's robust cash flow for 2024 allowed the company to invest $181 million into the acquisition of 26 funeral homes and 6 cemeteries in major metropolitan markets and $62 million into real estate transactions to expand their footprint.

The company operates in a stable, fragmented industry with strong margins, predictable revenue, and maintains a $16 billion backlog driven by preneed contracts and demographic trends.

Future Outlook

Looking ahead to 2025, management believes the company is well positioned to deliver solid results, with the midpoint of expected adjusted earnings per share growth within their long-term targeted growth range of 8% to 12%.

The company's annual guidance ranges for 2025 remain unchanged and are consistent with previously reported outlook, demonstrating management confidence in the business trajectory.

Service Corporation International's position as North America's largest deathcare provider, combined with its extensive network of locations, diversified service offerings, and strong cash generation capabilities, positions the company to benefit from demographic trends and continue its growth through strategic acquisitions in this fragmented industry.