Service Corp.: Meeting takeaways: Cemetery sales on track, decoupled from at-need volumes

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Service Corp.: Meeting takeaways: Cemetery sales on track, decoupled from at-need volumes

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Service Corp.

Meeting takeaways: Cemetery sales on

track, decoupled from at-need volumes

Maintain Rating: BUY | PO: 98.00 USD | Price: 77.00 USD

Maintain Buy after meetings 28 May 2026

We hosted meetings with Service Corp.’s (SCI) team including Aaron Foley, SVP & Equity

Treasurer, and Trey Bocage, AVP of Treasury and IR. Key takes: 1) Cemetery sales on

Joanna Gajuk

track, growth driven more by activity outside funeral homes; 2) SCI has strong pricing Research Analyst

power in cemetery; 3) Q1 funeral weakness to reverse rest of year; 4) Capital BofAS +1 646 855 3961

deployment focused on growth, acquisitions. We maintain our Buy rating given bullish joanna.gajuk@bofa.com

trends in Cemetery, and attractive cash flows. Kevin Fischbeck, CFA

Research Analyst

Cemetery sales driven by activity outside funeral homes BofAS+1 646 855 5948

The company has increased its focus on generating more cemetery pre-need sales kevin.fischbeck@bofa.com

outside of funeral homes. Seminars generate leads which combined with the increased Joaquin Arriagada Martinez Research Analyst

conversion rates as well as the growth in sales personnel should continue to drive mid- BofAS

single digit sales growth. Importantly, SCI’s cash flows allow it to develop tiered +1joaquin.arriagadamartinez@bofa.com646 855 1654

cemetery product inventory which its sales team can offer to consumers. Katie FitzGerald

SCI flexes cemetery pricing power BofAS+1 646 556 2930

With ~30% share in the cemetery market (by revenues) and exposure to land-scarce katie.fitzgerald@bofa.com

urban markets, SCI benefits from embedded real estate value that underpins pricing. Its