Carriage Services (C57) Q3 2026 Earnings Report

The call was mixed. Management highlighted a meaningful rebound in funeral contract volume, improved funeral revenue, a growing acquisition pipeline, stable operating cash flow, expanded borrowing capacity, and new organizational initiatives. However, these positives were offset by significant cemetery preneed weakness, lower EBITDA and adjusted EPS, trust-tax impacts, funeral margin pressure, lower year-to-date free cash flow, and reduced full-year guidance. Management expressed confidence in its corrective actions, but the near-term financial outlook remains below prior expectations.

For 2026, the company expects revenue between $415 million and $420 million, Adjusted consolidated EBITDA between $125 million and $130 million, Adjusted diluted earnings per share between $2.90 and $3.05, Adjusted Free Cash Flow between $40 million and $45 million, and capital expenditures of $20 million-$25 million; implied fourth-quarter revenue is approximately $106 million-$111 million and adjusted consolidated EBITDA approximately $30 million-$35 million. Funeral contracts are expected to be low single digits in the fourth quarter, with contracts ultimately flat to call 1% and some benefit associated with ARPC; cemetery preneed is not expected to show meaningful growth, with performance expected to get back on track by the end of the fourth quarter and fully back on track by the first quarter of 2027. The acquisition pipeline represents over $14 million in annual revenue, is expected to include five closings, and acquisitions are expected to contribute $700,000 to $1 million in the quarter; year-end leverage is expected to be between 4 and 4.1.