Service Corp International NDR Takeaways: Harnessing Demographic Tailwinds and Margin Transformation

研报英文原文证据摘录

Service Corp International NDR Takeaways: Harnessing Demographic Tailwinds and Margin Transformation

J P M O R G A N North America Equity Research

28 May 2026

Service Corp International Overweight

SCI, SCI US

NDR Takeaways: Harnessing Demographic Tailwinds Price (27 May 26):$77.00

and Margin Transformation Price Target (Dec-26):$100.00

North America Small and Mid Cap

Industrials

Tomohiko Sano AC

(1-212) 622-1099

tomohiko.sano@jpmorgan.com

We hosted SCI EVP and CFO Eric Tanzberger for a NYC NDR lunch, focusing on Ethan Coyle

demographic tailwinds, cemetery margin transformation, and long-term growth. (1-212) 270-0613

ethan.coyle@jpmchase.com

Management’s tone was constructive, emphasizing strategic positioning for the

Brendan Shea, CFA

baby boomer inflection, a $17bn preneed backlog, and unmatched scale. SCI

(1-212) 622-0770

believes there is potential for mid-teens or greater EPS growth as baby boomer brendan.shea@jpmorgan.com

volumes materialize, leveraging fixed costs and tech investments. We reiterate our Liam Glass

Overweight rating and $100 price target, believing SCI is best positioned for (1-212) 464-5541

sustained volume-driven growth as the largest scaled player in the industry. liam.glass@jpmorgan.com

J.P. Morgan Securities LLC

• Demographic Tailwind: Riding the Wave of Population Change: SCI is

positioned for the demographic wave, with timing estimates from 2028 to mid-

2030s. Its footprint is in top markets with the greatest population-driven

demand. Management noted even modest volume growth could drive 50-

100bps margin expansion in funeral. Cemetery segment precedent shows

margins expanding from mid-teens to over 30%, supporting future growth.

• Cemetery Transformation: Margin Expansion Through Innovation: The