Thu, May 1, 7:10 PM (16 days ago)
**Service Corporation International (SCI, Ticker: SCI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue increased by 2.7% to $1,074.2 million (from $1,045.4 million in Q1 2024). - **Profit Margins:** Gross profit rose by 6.3% to $291.4 million, while operating income increased by 8.4% to $251.7 million. - **Net Income:** Net income attributable to common stockholders increased by 9.6% to $142.9 million, or $0.98 per diluted share. - **Cash Flow:** Net cash provided by operating activities increased by 41.4% to $311.1 million. **Segment Performance:** - **Funeral Services:** Revenue increased by 5.7% to $639.5 million, with a 16.8% increase in gross profit to $154.0 million. - **Cemetery Services:** Revenue decreased by 1.3% to $434.7 million, with a 3.4% decrease in gross profit to $137.4 million. **Trends and Uncertainties:** - **Cremation Trends:** The cremation rate increased to 64.1%, impacting average revenue per service. - **Economic Factors:** Tariffs and trading relationships may affect costs and availability of raw materials. - **Regulatory Matters:** Ongoing litigation and regulatory proceedings could impact financial results. **Future Operations:** - **Capital Allocation:** SCI targets a leverage ratio of 3.5x to 4.0x and aims to return excess cash to shareholders through dividends and share repurchases. - **Growth Strategies:** Focus on strategic acquisitions, building new locations, and enhancing digital investments. - **Debt Management:** SCI maintains a favorable debt maturity profile and adequate liquidity to meet short-term and long-term financial obligations. **Key Metrics:** - **Average Revenue per Service:** Increased by 2.3% to $5,743. - **Services Performed:** Increased by 1.8% to 95,624. - **Backlog:** Total backlog of deferred revenue was $15.92 billion, with $6.67 billion in preneed receivables and trust investments. **Conclusion:** SCI demonstrated strong financial performance in Q1 2025, with notable increases in revenue, profit margins, and cash flow. The company continues to focus on strategic growth, effective capital allocation, and managing economic and regulatory uncertainties.