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Service Corporation International (MX:SCI)
:SCI
Mexico Market
EarningsQ2 2026 Earnings Report

Service International (SCI) Q2 2026 Earnings Report

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MX:SCI Q2 2026 EPS Results

Actual EPS$15.24
Consensus EPS$15.04
Beat/MissBeat by +$0.20
One Year Ago EPS$14.90

MX:SCI Q2 2026 Revenue Results

Actual Revenue$18.68B
Expected Revenue$18.34B
Beat/MissBeat by +$344.58M
YoY Revenue Growth+3.55%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:SCI Upcoming Earnings
Service International's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:SCI Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed multiple clear operational and financial positives: solid preneed sales momentum (especially Cemetery), materially stronger operating cash flow, a raised cash flow guidance midpoint, robust free cash flow growth, active capital returns, disciplined liquidity and M&A execution, and early benefits from sales strategy and digital/AI initiatives. Offsetting these positives were near-term margin pressures from accounting recognition of selling compensation tied to the shift in product and pay mix, lower Funeral case volumes earlier in the year, preneed recognition timing/backlog effects that depress near-term recognition rates, and some below-the-line/one-time tax and interest dynamics. Management indicated these headwinds are largely transitional and expects margin expansion and double-digit EPS growth in H2 2026, leading to a net positive outlook.
Company Guidance
SCI confirmed full‑year adjusted EPS guidance of $4.10–$4.30 (midpoint $4.20) and reiterated expectations for double‑digit EPS growth in H2 2026 versus H2 2025; it raised full‑year adjusted operating cash flow midpoint by $50M to $1.085B (Q2 adjusted OCF was $239M, +$71M or +42% YoY), increased maintenance CapEx by $10M to $335M (Cemetery development/maintenance each up ≈$5M), and projects adjusted free cash flow of $750M (up 18% vs 2025 FCF of $637M); cash tax guidance remains ~ $120M with a 2026 cash tax rate ~15–16% (normalized 24–25% would imply ≈$190M taxes and FCF ≈$680M), and GAAP effective tax rate ~25–26%; liquidity was ~$1.6B (≈$260M cash + ≈$1.4B credit), net leverage ~3.77x (midpoint target 3.5–4.0x) with $137M of 7.5% 2027 notes current; Q2 capital deployed totaled $120M (≈$80M maintenance, $25M growth, $6M digital, $15M acquisitions), Q2 shareholder returns were $172M (≈$123M buybacks—1.5M shares at ≈$76—and just under $50M dividends), YTD repurchases $266M for 3.3M shares at $78 avg with $96M dividends YTD, subsequent repurchases of 330k shares for ~$26M (~$78), shares outstanding ≈136M, and full‑year acquisition target remains $75–125M.
Earnings Per Share Improved Year-over-Year
GAAP EPS of $0.90 in Q2 2026 versus $0.88 in Q2 2025, a $0.02 increase driven by operating income improvements and lower share count.
Strong Preneed Sales Momentum — Cemetery
Comparable preneed cemetery sales production grew $29.7 million (+8%) in the quarter; comparable Cemetery revenue increased ~$23 million (+~5%) and cemetery gross profit rose $7 million (+4%) with margins roughly flat at ~33%.
Healthy Preneed Momentum — Funeral
Preneed Funeral sales production increased $20 million (~6.6%); comparable preneed funeral sales production grew ~7% and core preneed sales production grew 8.3%; core average revenue per service increased ~3.3%.
Substantial Cash Flow and Guidance Upside
Adjusted operating cash flow for the quarter was ~$239 million, up $71 million (≈+42% year-over-year). Management raised the full-year adjusted operating cash flow midpoint by $50 million to $1.085 billion.
Strong Free Cash Flow and Capital Returns
Adjusted free cash flow midpoint of $750 million for 2026 (≈+18% vs 2025's $637 million). Returned $172 million to shareholders in Q2 (≈$123M repurchases, ~$49M dividends) and >$360 million YTD.
Disciplined Balance Sheet and Liquidity
Ended the quarter with ~$1.6 billion of liquidity (≈$260M cash + ~ $1.4B available on credit facility) and net debt/EBITDA at ~3.77x (midpoint of 3.5x–4x target).
Targeted Capital Deployment and M&A Activity
Q2 capital invested ~$120 million (≈$80M maintenance, $25M growth, $15M acquisitions); acquisitions added locations in CA, GA and DE and YTD acquisition spend is ~$40M against a $75–125M full-year target.
Operational Improvements and Digital/AI Investment
Sales strategy centered on four pillars is showing traction (higher lead-to-sale rates, seminars, large sales) and early AI-enabled training tools are being deployed; digital/technology CapEx run rate noted at ~$20–25M annually.

MX:SCI Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 04, 2026
2026 (Q3)
16.78 / -
14.732
2026 (Q2)
15.04 / 15.24
14.9012.27% (+0.34)
2026 (Q1)
16.90 / 16.42
16.2551.04% (+0.17)
2025 (Q4)
19.39 / 19.30
17.9497.55% (+1.35)
2025 (Q3)
14.36 / 14.73
13.37710.13% (+1.35)
2025 (Q2)
14.38 / 14.90
13.37711.39% (+1.52)
2025 (Q1)
15.37 / 16.26
15.077.87% (+1.19)
2024 (Q4)
17.75 / 17.95
15.74713.98% (+2.20)
2024 (Q3)
13.11 / 13.38
13.2081.28% (+0.17)
2024 (Q2)
14.66 / 13.38
14.054-4.82% (-0.68)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed