Service Corporation International has reported exceptional third-quarter results for 2025, demonstrating the remarkable resilience of the death care industry during challenging economic periods. The funeral services provider substantially outperformed market projections across key financial metrics.
Financial Performance Exceeds Projections
The company’s adjusted earnings per share reached $0.87, representing a 10% year-over-year increase and comfortably surpassing analyst expectations. Revenue growth complemented this strong bottom-line performance, climbing 4.4% to $1.06 billion, which also exceeded market forecasts.
Cemetery Operations Fuel Profit Growth
Cemetery services emerged as the standout performer this quarter, with pre-need property production advancing by nearly 10% and significantly contributing to segment expansion.
Key cemetery segment highlights include:
* Gross profit increased by $18 million
* Gross margin improved by 160 basis points
* Operating margin reached an impressive 34%
Should investors sell immediately? Or is it worth buying Service?
While funeral service volume experienced a slight decline, this was more than offset by higher average transaction values and a substantial 13.4% increase in sales of ancillary products and services.
Revised Guidance and Cash Flow Outlook
Bolstered by these robust quarterly results, management has tightened its full-year 2025 guidance. The company now anticipates adjusted earnings per share between $3.80 and $3.90, effectively confirming the midpoint of previous projections.
More significantly, Service Corporation International has raised its adjusted operating cash flow forecast to a range of $910 million to $950 million. The new midpoint of $930 million represents a $20 million increase over prior estimates, reflecting improved working capital management and anticipated reductions in tax payments.
Analyst Sentiment Remains Bullish
Market experts maintain uniformly positive sentiment toward the company’s prospects. All six analysts covering the stock continue to recommend either “Buy” or “Strong Buy” positions. Truist Bank recently elevated its price target from $92 to $100, while the consensus price target stands at $92, suggesting additional upside potential remains.
Ad
Service Stock: Buy or Sell?! New Service Analysis from February 5 delivers the answer:
The latest Service figures speak for themselves: Urgent action needed for Service investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 5.
Service: Buy or sell? Read more here...
