UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | Commission file number 1-6402-1 | | | --- | --- | | SERVICE | CORPORATION INTERNATIONAL | (Exact name of registrant as specified in its charter) Texas 74-1488375 (State ...

Core Insights - Service Corporation International (SCI) reported strong fourth-quarter 2025 results, with both revenue and earnings increasing year over year, driven by growth in funeral and cemetery segments, higher gross profit, and disciplined capital management [1][9] Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 were $1.14, an 8% increase from $1.06 in the same quarter last year, matching the Zacks Consensus Estimate [2] - Total revenues reached $1,111.5 million, a 2% increase from $1,093.0 million year over year, although slightly below the Zacks Consensus Estimate of $1,119 million [2] - Gross profit rose by 1.9% to $311.7 million, maintaining a gross margin of 28% [2] Segment Analysis - **Funeral Segment**: - Total funeral revenues increased to $600.6 million from $587.7 million in Q4 2024, with gross profit rising to $126.2 million [4] - Average revenue per service grew by 3.3% to $5,880 [4] - Comparable funeral revenues rose 0.5% to $580.4 million, with comparable preneed funeral sales production up 11% to $294.1 million [5] - **Cemetery Segment**: - Total cemetery revenues increased to $510.9 million from $505.3 million in Q4 2024, with gross profit up 2.6% to $185.5 million [6] - Comparable cemetery revenues rose 0.9% to $508.3 million, driven by higher other revenues [7] Operating Income and Expenses - Operating income increased by 5.1% to $275.6 million from $262.2 million in the prior-year quarter [3] - Corporate general and administrative expenses were $33.7 million, significantly higher than $15.0 million in the prior-year period, primarily due to a reduction in legal reserves in the previous year [3] Financial Health and Outlook - At the end of 2025, SCI had $243.6 million in cash and cash equivalents, up from $218.8 million at the end of 2024, with long-term debt totaling $5.1 billion [10] - For 2026, SCI expects diluted EPS in the range of $4.05-$4.35, indicating growth within its long-term target range of 8-12% [13] - Projected net cash provided by operating activities for 2026 is between $1,005 million and $1,065 million after cash taxes [14]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.14 for Q4 2025, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The effective tax rate increased, which negatively impacted EPS growth by $0.06 for the year [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, in Q4 2025, with core funeral revenue up by $6 million, or just over 1% [6] - Non-funeral home revenue increased by $3 million, primarily due to an 11% increase in average revenue per service [7] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [11] Market Data and Key Metrics Changes - The company experienced a decline in core funeral services performed by 1.9% in Q4 2025 [6] - For the full year 2025, comparable funeral volume declined less than 1% [7] - Pre-need cemetery sales production increased by $8 million, or about 2%, for Q4 2025 [12] Company Strategy and Development Direction - The company aims to grow pre-need cemetery sales production in the low to mid-single-digit percentage range for 2026 [15] - The strategy includes managing inflationary costs and expanding gross margin percentages by 30-60 basis points compared to 2025 [15] - The company is focused on enhancing customer experience through capital investments in funeral homes and cemeteries [20][22] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [14] - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, reflecting 5%-13% growth [13] - Management expressed confidence in the momentum carried into 2026, particularly in pre-need sales and core customer engagement [14][38] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [18] - Capital investments for the year totaled $508 million, with $174 million invested in Q4 alone [20] - The company returned $645 million to shareholders in 2025 through share repurchases and dividends [24] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth? - Management indicated a slight increase in large sales and a more robust increase in core sales for 2026, with confidence in momentum [33][34] Question: How are sales tracking in your Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [35][38] Question: What are the opportunities for growing cemetery sales for cremation customers? - The company is piloting initiatives to enhance visibility and awareness for cremation customers, with plans to roll out more broadly [40] Question: What drove the better performance on G&A expenses? - Management explained that fluctuations in short-term and long-term compensation plans impacted G&A expenses, with expectations of $40-$42 million per quarter moving forward [44][45] Question: Can you discuss the dynamics driving GA revenue in the funeral segment? - Management noted that the introduction of a flex product with lower commission rates and higher cancellation rates impacted GA revenue [76][80]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.14 for Q4 2025, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The effective tax rate increased, which negatively impacted EPS growth by $0.06 for the year [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, in Q4 2025, with core funeral revenue up by $6 million, or just over 1% [6][7] - Non-funeral home revenue increased by over $2 million, primarily due to an 11% increase in average revenue per service [8] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [11] Market Data and Key Metrics Changes - The company experienced a decline in core funeral services performed by 1.9% in Q4 2025 [6] - For the full year 2025, comparable funeral volume declined less than 1% [7] - Pre-need cemetery sales production increased by about 2% in Q4 2025, with core sales accounting for a $13 million increase [12] Company Strategy and Development Direction - The company aims to grow pre-need cemetery sales production in the low to mid-single-digit percentage range for 2026, resulting in cemetery revenue growth of about 2%-5% [15] - The focus is on managing inflationary costs and leveraging scale to drive profit growth [15] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [28] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [14] - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, reflecting 5%-13% growth [13] - Management expressed confidence in the momentum carried into 2026, particularly in pre-need sales and core customer engagement [14][38] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [18] - Capital investments for Q4 2025 totaled $174 million, with a full-year total of $508 million [20] - The company returned $107 million to shareholders in Q4 2025 through share repurchases and dividends [23] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth for 2026? - Management indicated a slight increase of 2%-3% for large sales and a more robust increase for core sales, expressing confidence in momentum [33][34] Question: How are sales tracking so far this year, particularly in the Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [35][38] Question: What are the plans for developing and selling premium cemetery inventory? - The company plans to invest in tiered inventory offerings to cater to different customer segments, leveraging existing cemetery capacity [67][69] Question: Can you discuss the drivers of lower than inflation expense growth? - Management attributed this to effective cost management strategies, including labor efficiency and supply chain improvements [56][58] Question: What is the outlook for perpetual care trust revenue in 2026? - The company expects continued strong performance in trust funds, with a typical market return model of about 7% [85][86]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted earnings per share (EPS) of $1.14, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The company experienced solid increases in revenue, gross profit, and comparable margin percentages in both funeral and cemetery segments [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, with core funeral revenue up by $6 million, or just over 1% [6] - Non-funeral home revenue increased by $3 million, primarily due to an 11% increase in average revenue per service [7] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [12] Market Data and Key Metrics Changes - The company noted a decline in core funeral services performed by 1.9% for Q4 2025, while comparable funeral volume for the full year declined less than 1% [7] - The average revenue per service in the funeral segment grew by 3.2%, despite a modest increase in the cremation rate [6] - Pre-need cemetery sales production increased by $8 million, or about 2%, with core sales accounting for a $13 million increase [13] Company Strategy and Development Direction - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, indicating a growth of 5%-13% [14] - The strategy includes managing fixed costs below inflationary levels while focusing on productivity to drive profit growth [15] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [29] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [15] - The company is optimistic about pre-need sales production growth in both core and SCI Direct businesses [16] - Management highlighted a strong financial position and liquidity, allowing for opportunistic investments in 2026 [30] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [20] - Capital investments for the quarter totaled $174 million, with a full-year total of $508 million [22] - The company returned $107 million to shareholders in Q4 2025 through share repurchases and dividends [24] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth? - Management indicated a slight increase of 2%-3% for large sales and a more robust increase for core sales, expressing confidence in momentum heading into 2026 [34] Question: How are sales tracking in your Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [36] Question: What are the opportunities for growing cemetery sales for cremation customers? - The company is piloting initiatives to enhance visibility and awareness for cremation customers, with plans to roll out these efforts across more markets [41] Question: Can you discuss the drivers of lower than inflation expense growth? - Management attributed this to effective supply chain management and labor efficiency initiatives, allowing for better cost control [56] Question: What is the outlook for perpetual care trust revenue? - The company expects continued strong performance in trust funds, with a typical market return modeled at around 7% [84]

Non-GAAP Financial Measures February 12, 2026 Definitions: Non-GAAP Financial Measures This presentation includes non-GAAP financial measures. This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. ADJUSTED EPS OR DILUTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS We use diluted earnings per share excluding special items (adjusted ...

Core Insights - Service Corp. (SCI) reported revenue of $1.11 billion for the quarter ended December 2025, reflecting a year-over-year increase of 1.7% [1] - Earnings per share (EPS) for the quarter was $1.14, up from $1.06 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.12 billion, resulting in a revenue surprise of -0.69% [1] - The company experienced an EPS surprise of -0.18%, with the consensus EPS estimate being $1.14 [1] Performance Metrics - Total comparable funeral average revenue per service was $5,880.00, slightly above the average estimate of $5,877.90 [4] - The number of funeral services performed was 89,117, which was lower than the estimated 89,910 [4] - Cemetery revenue was reported at $510.9 million, compared to the estimated $516.82 million, representing a year-over-year change of +1.1% [4] - Funeral revenue reached $600.6 million, slightly below the estimated $602.35 million, with a year-over-year increase of +2.2% [4] - Gross profit from funeral services was $126.2 million, below the average estimate of $132.55 million [4] - Gross profit from cemetery services was $185.5 million, exceeding the average estimate of $180.36 million [4] Stock Performance - Shares of Service Corp. have returned +4.4% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Service Corp. reported quarterly earnings of $1.14 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.06 per share a year ago, with a slight earnings surprise of -0.18% [1] Financial Performance - The company posted revenues of $1.11 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.69%, and a slight increase from $1.09 billion year-over-year [2] - Over the last four quarters, Service Corp. has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Service Corp. shares have increased approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] - The current Zacks Rank for Service Corp. is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $1.11 billion, while for the current fiscal year, the estimate is $4.25 on revenues of $4.47 billion [7] - The trend of earnings estimate revisions for Service Corp. was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Funeral Services industry, to which Service Corp. belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - Carriage Services, another company in the same industry, is expected to report quarterly earnings of $0.80 per share, reflecting a year-over-year increase of 29% [9]

Exhibit 99.1 SERVICE CORPORATION INTERNATIONAL ANNOUNCES FOURTH QUARTER 2025 FINANCIAL RESULTS AND PROVIDES 2026 GUIDANCE Conference call on Thursday, February 12, 2026, at 8:00 a.m. Central Time. HOUSTON, Texas, February 11, 2026 . . . Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the fourth quarter of 2025. Highlights: Tom Ryan, the Company's Chairman and Chief Executive Officer, commented on fourth quart ...

Core Insights - Service Corporation International (SCI) reported a strong financial performance for Q4 2025, with adjusted earnings per share (EPS) growing 8% year-over-year to $1.14 and a full-year adjusted EPS increase of 9% to $3.85 [1][2] - The company generated $966 million in adjusted operating cash flow for the full year, enabling strategic investments and returning $645 million to shareholders through dividends and share repurchases [1][2] - Looking ahead to 2026, SCI anticipates adjusted EPS growth within the long-term target range of 8% to 12% [2] Financial Performance - Q4 2025 revenue increased by $19 million, or 2%, to $1,111.5 million compared to Q4 2024, with full-year revenue rising by $123 million, or 3%, to $4,309.2 million [1][3] - Gross profit for Q4 2025 was $311.7 million, a 2% increase from Q4 2024, while full-year gross profit rose by $49 million, or 5%, to $1,140.1 million [1][3] - Net cash provided by operating activities decreased by $51.2 million to $212.9 million in Q4 2025, primarily due to higher cash interest and taxes [1][3] Segment Performance - Comparable preneed cemetery sales production grew by 2% in Q4 2025, with a full-year increase of $48 million, or 4% [1][5] - Comparable total funeral sales average increased by 3% in Q4 2025, while comparable preneed funeral sales production surged by 11% [1][5] - The company experienced a 0.9% increase in comparable cemetery revenue, driven by higher other revenue, despite a decline in core revenue [6] Capital Expenditures and Investments - In 2025, SCI invested approximately $101 million in acquisitions of 22 funeral homes and 2 cemeteries, alongside $79 million in real estate and new construction [1][2] - Total capital expenditures for 2025 amounted to $388.6 million, reflecting a $19.5 million increase from the previous year [6][7] Outlook for 2026 - The 2026 outlook for diluted EPS excluding special items is projected to be between $4.05 and $4.35, with net cash provided by operating activities expected to range from $1,005 million to $1,065 million [2][3] - Capital improvements at existing locations are budgeted at $135 million, with cemetery property development at $165 million [2][3]