SERVICE CORP INTERNATIONAL

Results of Operations — Three Months Ended March 31, 2026 and 2025

Management Summary

In the first three months of 2026, we reported consolidated net income attributable to common stockholders of $135.8 million ($0.97 per diluted share) compared to net income attributable to common stockholders for the same period in 2025 of $142.9 million ($0.98 per diluted share). These results were impacted by certain items including:

In addition to the above items, higher cemetery gross profit combined with a lower share count and a favorable tax rate slightly offset lower funeral gross profit resulting from a decline in funerals performed during the quarter.

FORM 10-Q 33

PART I

Funeral Results

(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2025 and ending March 31, 2026.

(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 $630.6 million for the three months ended March 31, 2026, compared to $639.5 million for the same period in 2025. This $8.9 million decrease in revenue is primarily attributable to a $17.4 million decrease in comparable revenue, partially offset by a $9.7 million increase in revenue contributed by newly constructed and acquired properties.

Comparable revenue from funeral operations was $620.2 million for the three months ended March 31, 2026 compared to $637.6 million for the same period in 2025. The $17.4 million, or 2.7%, decrease was due to a $16.1 million decrease in adjusted comparable funeral revenue and a $1.2 million decrease in core general agency and other revenue, partially offset by a $0.1 million increase in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue decreased $16.1 million, or 2.9%, primarily due to a 6.0% decrease in comparable funeral services performed reflecting the impact of a strong prior year flu season, which aligns with broader industry and demographic trends. This decrease was partially offset by a 3.4% increase in total average revenue per service. The total comparable cremation rate increased 40 basis points over the prior year to 64.5%.

Core general agency and other revenue decreased $1.2 million. Core general agency revenue benefitted from higher insurance sales production which was more than offset by a lower general agency commission rate quarter over quarter. The current commission rate has now stabilized and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit decreased $20.0 million, or 13.0%, in the first three months of 2026 compared to the same period in 2025. This decrease is primarily attributable to a $22.8 million, or 14.7%, decrease in comparable funeral gross profit, partially offset by a $2.2 million increase in gross profit contributed by acquired and newly constructed properties. Comparable funeral gross profit decreased $22.8 million to $132.6 million, and the comparable gross profit percentage declined 300 basis points from 24.4% to 21.4%. This is primarily attributable to the $17.4 million decline in comparable funeral revenue applied to our high fixed cost operating structure. This decline was slightly offset by our focus on disciplined controllable cost management, limiting fixed cost growth to approximately 1% versus the prior year quarter.

34 Service Corporation International

PART I

Cemetery Results

(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2025 and ending March 31, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $31.2 million, or 7.2%, in the three months ended March 31, 2026 compared to the same period in 2025, primarily due to a $30.8 million, or 7.1%, increase in comparable cemetery revenue and a $0.4 million increase in revenue contributed by acquired and newly constructed properties.

The $30.8 million increase in comparable cemetery revenue was primarily attributable to a $25.2 million increase in comparable cemetery core revenue and an increase in other revenue of $5.6 million. The increase in core revenue was primarily due to an increase of $20.7 million from higher property revenue and $7.8 million from higher merchandise and service revenue. Total recognized preneed revenue benefited from growth in comparable preneed sales production of $31.6 million, or 9.7%. The increase in other revenue was primarily from an increase in endowment care trust fund income related to higher total return distributions.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $15.1 million, or 11.0%, in the three months ended March 31, 2026 compared to the same period in 2025. This increase is primarily attributable to a $15.0 million increase in comparable cemetery gross profit. Comparable cemetery gross profit increased from $137.5 million to $152.5 million, and the gross profit percentage increased from 31.6% to 32.8% 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 $0.8 million to $43.9 million for the three months ended March 31, 2026.

Interest Expense

Interest expense increased $2.5 million to $64.0 million for the three months ended March 31, 2026. The average balances on our floating rate debt increased approximately $250.0 million, partially offset by lower average floating rates decreasing from 6.8% to 5.8%.

Provision for Income Taxes

Our effective tax rate was 25.0% and 26.1% for the three months ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate in the current period was primarily due to tax benefits from an investment in a renewable energy project recognized in the quarter. The effective tax rate for the three months ended March 31, 2026 was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign taxes.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 139.9 million for the three months ended March 31, 2026 compared to 145.3 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

FORM 10-Q 35