SERVICE CORP INTERNATIONAL

Results of Operations — Three and Nine Months Ended September 30, 2025 and 2024

Three Months Ended September 30, 2025 and 2024

Management Summary

In the third quarter of 2025, we reported consolidated net income attributable to common stockholders of $117.5 million ($0.83 per diluted share) compared to net income attributable to common stockholders in the third quarter of 2024 of $117.8 million ($0.81 per diluted share). These results were impacted by certain items including:

In addition to the above items, the decrease from prior year is primarily due to lower funeral gross profit on lower services performed, and higher tax rate. This decline was partially offset by higher cemetery gross profit, lower corporate general and administrative expenses, and lower share count over the prior year quarter.

Funeral Results

(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2024 and ending September 30, 2025.

(2) We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of funeral services performed during the period. Recognized preneed revenue is excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.

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Funeral Revenue

Consolidated revenue from funeral operations was $574.1 million for the three months ended September 30, 2025 compared to $566.0 million for the same period in 2024. This $8.1 million increase is primarily attributable to the $10.8 million increase in revenue from acquired and newly constructed properties partially offset by the $1.9 million decrease in comparable revenue.

Comparable revenue from funeral operations was $558.5 million for the three months ended September 30, 2025 compared to $560.4 million for the same period in 2024. This $1.9 million, or 0.3%, decrease is primarily due to a $4.6 million decrease in non-funeral home preneed sales revenue partially offset by a $3.1 million increase in core general agency revenue and other revenue.

Adjusted comparable funeral revenue decreased $0.4 million due to a 3.1% decrease in funeral services performed, partially offset by a 3.1% increase in average revenue per service. The total comparable cremation rate increased slightly by 50 basis points to 64.4%.

Non-funeral home preneed sales revenue decreased $4.6 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This is short-term in nature as we will recognize deferred urn revenue from the backlog at the time of need as non-funeral home revenue. This decrease is partially offset by an increase in general agency revenue as we shift more production from trust to insurance-funded contracts.

Core general agency and other revenue grew $3.1 million, due to an 8.7% increase in core production primarily driven by higher preneed insurance production.

Funeral Gross Profit

Consolidated funeral gross profit decreased $8.3 million, or 7.7%, for the three months ended September 30, 2025 compared to the same period in 2024, primarily attributable to a decrease in comparable funeral gross profit. Comparable funeral gross profit decreased $9.5 million to $98.0 million, and the comparable gross profit percentage decreased from 19.2% to 17.5%. This is primarily due to a $6.0 million increase in selling compensation costs, on a $47.1 million increase in funeral preneed insurance sales production, which are expensed as incurred. In addition, there was a slight decrease in revenue mentioned above.

Cemetery Results

(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2024 and ending September 30, 2025.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $36.0 million, or 8.0%, for the three months ended September 30, 2025 compared to the same period in 2024 primarily due to a $31.0 million increase in comparable cemetery revenue and a $5.0 million increase in revenue contributed by newly constructed and acquired properties.

The comparable cemetery revenue increased $31.0 million, or 6.9%, for the three months ended September 30, 2025 primarily due to higher comparable core revenue of $27.5 million and higher comparable other revenue of $3.5 million. The comparable core revenue increase of $27.5 million was primarily due to a $27.3 million increase in recognized preneed revenue, from higher recognized preneed property revenue of $21.3 million and higher recognized preneed merchandise and service revenue of $6.0 million. Total recognized preneed revenue benefited from growth in comparable cemetery preneed sales production of $30.3 million, or 9.6%.

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Cemetery Gross Profit

Consolidated cemetery gross profit increased $21.1 million, or 14.6%, in the three months ended September 30, 2025 compared to the same period in 2024, which is primarily attributable to an $18.0 million increase in comparable cemetery gross profit and a $3.1 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased $18.0 million to $162.8 million. The gross profit percentage increased versus the prior year quarter from 32.4% to 34.0% primarily due to the growth in core revenue mentioned above.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $5.4 million to $38.3 million in the third quarter of 2025 compared to the third quarter of 2024 of $43.7 million. The decrease is primarily due to the timing of incentive compensation accruals versus the prior year quarter.

Other Income, Net

Other income, net decreased $2.7 million to $0.2 million for the three months ended September 30, 2025 primarily due to the change in foreign currency exchange rates compared to the prior year.

Provision for Income Taxes

Our effective tax rate was 26.9% and 21.1% for the three months ended September 30, 2025 and 2024, respectively. The higher effective tax rate in the current period was primarily due to a change in estimate recorded in the current year related to the finalization of the 2024 tax return, as well as less excess tax benefit recognized upon the settlement of employee share-based awards. The effective tax rate was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign tax expense.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 141.4 million for the three months ended September 30, 2025 compared to 146.2 million for the same period in 2024. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Nine Months Ended September 30, 2025 and 2024

Management Summary

In the first nine months of 2025, we reported consolidated net income attributable to common stockholders of $383.2 million ($2.68 per diluted share) compared to net income attributable to common stockholders for the same period in 2024 of $367.3 million ($2.50 per diluted share). These results were impacted by certain items including:

In addition to the above items, the increase from the prior year is primarily due to higher funeral gross profit driven by an increase in funeral average revenue per service and higher cemetery gross profit. The increase in corporate general and administrative expense and higher tax rate was partially offset by lower interest expense and a lower share count.

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Funeral Results

(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2024 and ending September 30, 2025.

(2) We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, non-funeral home preneed sales revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of funeral services performed during the period.

Funeral Revenue

Consolidated revenue from funeral operations was $1,804.9 million for the nine months ended September 30, 2025, compared to $1,736.5 million for the same period in 2024. This $68.4 million increase is primarily attributable to a $36.7 million increase in comparable revenue and $34.8 million growth in revenue contributed by acquired and newly constructed properties.

Comparable revenue from funeral operations was $1,760.6 million for the nine months ended September 30, 2025 compared to $1,723.9 million for the same period in 2024. The $36.7 million, or 2.1%, increase was due to a $32.0 million increase in adjusted comparable funeral revenue and a $18.8 million increase in core general agency and other revenue, partially offset by a $14.1 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $32.0 million, or 2.2%, primarily due to a 2.8% increase in total average revenue per service, partially offset by a 0.6% decrease in total services performed. The total comparable cremation rate increased 60 basis points over prior year to 64.3%.

Core general agency and other revenue grew $18.8 million, primarily due to growth in general agency revenue from higher commission rates as a result of the change in our preferred preneed insurance provider.

Non-funeral home preneed sales revenue decreased $14.1 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This is short-term in nature as we will recognize deferred urn revenue from the backlog at the time of need as non-funeral home revenue. This decrease is partially offset by an increase in general agency revenue as we shift more production from trust to insurance-funded contracts.

Funeral Gross Profit

Consolidated funeral gross profit increased $29.4 million, or 8.6%, in the first nine months of 2025 compared to the same period in 2024, primarily attributable to the increase in comparable funeral gross profit. Comparable funeral gross profit increased $26.0 million to $365.2 million, and the comparable gross profit percentage increased from 19.7% to 20.7%. This is primarily due to the growth in revenue described above, partially offset by a $7.5 million increase in selling compensation costs, on a $79.3 million increase in funeral preneed insurance sales production, which are expensed as incurred.

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Cemetery Results

(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2024 and ending September 30, 2025.

Cemetery Revenue

The consolidated revenue from our cemetery operations for the nine months ended September 30, 2025 increased $35.9 million, or 2.6%, compared to the same period in 2024, primarily due to a $24.9 million, or 1.8%, increase in comparable cemetery revenue and a $10.8 million increase in revenue contributed by newly constructed and acquired properties.

The $24.9 million increase in comparable cemetery revenue was primarily attributable to a $18.0 million increase in comparable cemetery core revenue and an increase in other revenue of $7.0 million. The increase in core revenue was primarily due to a $13.1 million increase in recognized preneed revenue and a $4.8 million increase in atneed revenue. Total recognized preneed revenue benefited from growth in comparable preneed sales production of $40.4 million, or 4.1%.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $14.2 million for the nine months ended September 30, 2025 compared to the same period in 2024, which is primarily attributable to a $7.9 million increase in comparable cemetery gross profit and a $6.0 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $445.0 million to $452.9 million. The gross profit percentage remained flat at 32.8% as the increase in revenue mentioned above was partially offset by higher selling compensation on higher sales production and by modest fixed cost growth versus the prior year as we continue to focus on managing our fixed cost structure.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses increased $8.4 million to $132.5 million for the nine months ended September 30, 2025. Of the increase, $6.4 million is due to the settlement of certain legal matters, with the remainder primarily due to higher auto and general liability claims, partially offset by lower salaries and incentive compensation accruals versus the prior year.

Gains on Divestitures and Impairment Charges, Net

We recognized a $8.6 million net pre-tax gain on asset divestitures and impairments in the nine months ended September 30, 2025 compared to a $4.8 million net pre-tax gain in 2024 on asset divestitures due to non-strategic asset divestitures.

Interest Expense

Interest expense decreased $3.3 million to $191.2 million for the nine months ended September 30, 2025 primarily due to lower interest rates on our floating rate debt, partially offset by higher average debt outstanding.

Provision for Income Taxes

Our effective tax rate was 26.1% and 23.1% for the nine months ended September 30, 2025 and 2024, respectively. The higher effective tax rate in the current period was primarily due to a change in estimate recorded in the current year related to the finalization of the 2024 tax return, as well as less excess tax benefit recognized upon the settlement of employee share-

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based awards. The effective tax rate was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign tax expense.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 143.2 million for the nine months ended September 30, 2025 compared to 147.0 million for the same period in 2024. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.