SCI 2Q26 Wrap: Both Funeral and Cemetery Expected to See Improvement in Back Half of the Year; PT to $105

研报英文原文证据摘录

SCI 2Q26 Wrap: Both Funeral and Cemetery Expected to See Improvement in Back Half of the Year; PT to $105

Global Research

30 July 2026ab

Service Corporation International Equities

United StatesSCI 2Q26 Wrap: Both Funeral and Cemetery

Expected to See Improvement in Back Half of the Healthcare Providers

12-month rating BuyYear; PT to $105

12m price target US$105.00

Prior : US$93.00

2Q Wrap - Funeral Volumes Better than Expected, While Cemetery Growth Price (30 Jul 2026) US$85.79

Remained Strong

RIC: SCI.N BBG: SCI US

SCI's 2Q results came in better than expected, with core comparable funeral volumes

down 1.7% Y/Y (better than anticipated) and cemetery pre-need sales production Trading data and key metrics

seeing another quarter of HSD growth. Looking to the back half of the year, the 52-wk range US$87.73-68.77

company believes they are positioned well to deliver solid revenue growth and drive Market cap. US$11.9b

margin expansion in both segments. SCI expects this to drive double-digit EPS growth in Shares o/s 138m (COM)

2H26 vs. 2H25. On funeral volumes, the company saw the Y/Y decline moderate during Free float 97%

2Q, with the month of June actually seeing slight volume growth. SCI is looking for a Avg. daily volume ('000) 426

continued moderation of the rate of decline in the back half of the year, with potentially Avg. daily value (m) US$32.5

flat volumes in 3Q (July was noted to be flat based on preliminary data). For reference,

Common s/h equity (12/26E) US$1.56b

the comps get easier in the back half of the year, as 3Q25 and 4Q25 volumes were down

P/BV (12/26E) 7.6x

3.5% and 1.9%, respectively. 2H results are also expected to benefit from a

Net debt to EBITDA (12/26E) 3.7x

continuation of strong pre-need cemetery sales production where SCI expects growth to