Service Corp International: 2Q Results: Moving in the Right Direction: Cash Flow Guidance Raised

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Service Corp International: 2Q Results: Moving in the Right Direction: Cash Flow Guidance Raised

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

03 August 2026

Service Corp International Overweight

SCI, SCI US

2Q Results: Moving in the Right Direction: Cash Flow Price (31 Jul 26):$86.19

Guidance Raised Price Target (Dec-27):$100.00

SCI delivered adj. EPS of $0.90 (vs. consensus $0.89) and revenue of $1,103M, up North America Small and Mid Cap

~4% YoY, as continued Cemetery strength and a higher Funeral average revenue Industrials

per service more than offset softer Funeral volumes and margin. Cemetery was the Tomohiko Sano AC

primary driver, with comparable revenue up ~5% on strong recognized preneed (1-212) 622-1099

merchandise and service revenue, while Funeral comparable gross margin tomohiko.sano@jpmorgan.com

contracted ~130bps on a 1.4% volume decline and higher insurance-funded selling Ethan Coyle

compensation. We believe the quarter was positively in the right direction given the (1-212) 270-0613

raised cash guidance, a moderating volume decline (~1.4% vs. ~6% last quarter), ethan.coyle@jpmchase.com

and management's expectation of +DD EPS growth in the 2H26, which supports Brendan Shea, CFA

(1-212) 622-0770

our constructive long-term stance and our Overweight rating. brendan.shea@jpmorgan.com

• Solid 2Q Print with Cash Upside on Preneed Collections: SCI delivered a J.P. Morgan Securities LLC

solid 2Q, with adj. EPS of $0.90 (vs. consensus $0.89) and revenue of $1,103M

(vs. consensus $1,085M), up ~4% YoY, as cemetery momentum offset funeral Quarterly Forecasts (FYE Dec)

softness. Management confirmed the $4.20 midpoint of FY26 adj. EPS Adj. EPS ($)

guidance while narrowing the range to $4.10-$4.30, and raised the adj. 2025A 2026E 2027E