SERVICE CORP INTERNATIONAL

Results of Operations — Three and Six Months Ended June 30, 2026 and 2025

Three Months Ended June 30, 2026 and 2025

Management Summary

In the second quarter of 2026, we reported consolidated net income attributable to common stockholders of $124.8 million ($0.90 per diluted share) compared to net income attributable to common stockholders in the second quarter of 2025 of $122.9 million ($0.86 per diluted share). These results were impacted by certain items including:

In addition to the above items, the increase was due to higher cemetery gross profit combined with lower corporate general and administrative expenses and lower share count over prior year quarter. This increase was slightly offset by lower funeral gross profit as the impact of modest revenue growth was offset by higher selling compensation costs on increased production and normal increases in our fixed-cost structure.

34 Service Corporation International

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 June 30, 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 $604.8 million for the three months ended June 30, 2026 compared to $591.4 million for the same period in 2025. This $13.4 million increase is primarily attributable to a $9.4 million increase in revenue from acquired and newly constructed properties and a $5.1 million increase in comparable revenue, partially offset by a $1.1 million decrease in revenue associated with divested properties.

Comparable revenue from funeral operations was $592.9 million for the three months ended June 30, 2026 compared to $587.8 million for the same period in 2025. This $5.1 million, or 0.9%, increase was due to a $9.4 million increase in adjusted comparable funeral revenue and a $0.8 million increase in core general agency and other revenue, partially offset by a $5.1 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $9.4 million due to a 3.3% increase in comparable average revenue per service partially offset by a 1.4% decrease in comparable funeral services performed. The growth in the average revenue per service is primarily driven by consumer preferences for enhanced product and service offerings as well as an increase in trust fund income. The total comparable cremation rate increased by 50 basis points to 64.8%.

Non-funeral home preneed sales revenue decreased $5.1 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This transition was completed late in 2025, and this decrease 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.

Core general agency and other revenue grew $0.8 million. Core general agency revenue benefited from higher insurance sales production which was largely offset by a lower general agency commission rate quarter over quarter. The current commission rate is stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit decreased $5.7 million, or 4.9%, for the three months ended June 30, 2026 compared to the same period in 2025, primarily attributable to a decrease in comparable funeral gross profit. Comparable funeral gross profit decreased $6.8 million to $109.8 million, and the comparable gross profit percentage decreased from 19.8% to 18.5%. Gross profit was impacted by higher selling compensation associated with strong insurance-funded preneed sales production. Selling compensation costs associated with insurance-funded preneed sales production are expensed as incurred, while the benefit of these sales will be realized in future periods as the related funeral services are performed. In addition, the gross profit was impacted by the timing of incentive compensation accruals versus the prior year quarter.

FORM 10-Q 35

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 June 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $24.4 million, or 5.1%, for the three months ended June 30, 2026 compared to the same period in 2025 primarily due to a $22.8 million increase in comparable cemetery revenue and a $1.6 million increase in revenue contributed by newly constructed and acquired properties.

Comparable cemetery revenue increased $22.8 million, or 4.8%, for the three months ended June 30, 2026 primarily due to higher comparable core revenue of $14.4 million and higher comparable other revenue of $8.4 million. The comparable core revenue increase of $14.4 million was primarily due to a $15.2 million, or 4.7%, increase in recognized preneed revenue, of which $4.8 million resulted from higher property revenue and $10.4 million from higher merchandise and service revenue. Total recognized preneed revenue benefited from growth in comparable cemetery preneed sales production of $29.7 million, or 8.0%, a significant portion of which will benefit us in the future.

Other revenue was $8.4 million, or 22.8%, higher compared to the prior year quarter primarily from an increase in endowment care trust fund income based on market performance and higher total return distributions.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $7.7 million, or 5.0%, in the three months ended June 30, 2026 compared to the same period in 2025, which is primarily attributable to a $6.7 million increase in comparable cemetery gross profit and a $1.0 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $155.5 million to $162.2 million. The gross profit percentage decreased slightly from 32.8% to 32.6%. Gross profit was impacted by higher selling compensation, reflecting strong preneed sales production growth of 8.0%. While this strong production growth puts temporary pressure on cemetery gross margins, it grows our backlog with higher-margin deferred property sales which will benefit us in future periods. In addition, the gross profit was impacted by the timing of incentive compensation accruals versus the prior year quarter.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $7.7 million to $41.8 million in the second quarter of 2026 compared to the second quarter of 2025 of $49.5 million. The prior year included a $6.4 million charge related to the settlement of certain legal matters. The remaining decrease is partially due to lower auto and general liability claims in the current year.

(Losses) Gains on Divestitures and Impairment Charges, Net

We recognized a $0.1 million net pre-tax loss on asset divestitures and impairments in the second quarter of 2026 compared to a $4.1 million net pre-tax gain in the second quarter of 2025 on asset divestitures due to non-strategic asset divestitures.

Interest Expense

Interest expense increased $0.6 million to $64.7 million for the three months ended June 30, 2026. The average balances on our floating-rate debt increased approximately $189.0 million, partially offset by lower average floating rates decreasing from 6.8% to 5.8%.

FORM 10-Q 36

PART I

Other (Expense) Income, Net

Other (expense) income, net decreased $4.0 million, resulting in Other expense, net of $0.1 million for the three months ended June 30, 2026 primarily due to the change in foreign currency exchange rates compared to the prior year.

Provision for Income Taxes

Our effective tax rate was 25.1% and 25.2% for the three months ended June 30, 2026 and 2025, respectively. 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 138.3 million for the three months ended June 30, 2026 compared to 143.0 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Six Months Ended June 30, 2026 and 2025

Management Summary

In the first six months of 2026, we reported consolidated net income attributable to common stockholders of $260.6 million ($1.87 per diluted share) compared to net income attributable to common stockholders for the same period in 2025 of $265.7 million ($1.84 per diluted share). These results were impacted by certain items including:

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

FORM 10-Q 37

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 June 30, 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 $1,235.4 million for the six months ended June 30, 2026, compared to $1,230.9 million for the same period in 2025. This $4.5 million increase in revenue is primarily attributable to a $19.0 million increase in revenue contributed by newly constructed and acquired properties, partially offset by a $12.3 million decrease in comparable revenue and a $2.2 million decrease in revenue related to divested properties.

Comparable revenue from funeral operations was $1,213.1 million for the six months ended June 30, 2026 compared to $1,225.4 million for the same period in 2025. The $12.3 million, or 1.0%, decrease was due to a $6.5 million decrease in adjusted comparable funeral revenue, a $5.3 million decrease in non-funeral home preneed sales revenue, and a $0.5 million decrease in core general agency and other revenue.

Adjusted comparable funeral revenue decreased $6.5 million, or 0.6%, primarily due to a 3.8% decrease in comparable funeral services performed. This decrease was partially offset by a 3.4% increase in comparable average revenue per service. The growth in the average revenue per service is primarily driven by consumer preferences for enhanced product and service offerings as well as an increase in trust fund income. The total comparable cremation rate slightly increased 50 basis points over the prior year to 64.7%.

Non-funeral home preneed sales revenue decreased $5.3 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This transition was completed late in 2025, and this decrease 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.

Core general agency and other revenue decreased $0.5 million. Core general agency revenue benefited from higher insurance sales production which was largely offset by a lower general agency commission rate year over year. The current commission rate is stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit decreased $25.7 million, or 9.5%, in the first six months of 2026 compared to the same period in 2025. This decrease is primarily attributable to a $29.5 million, or 10.8%, decrease in comparable funeral gross profit, partially offset by a $2.7 million increase in gross profit contributed by acquired and newly constructed properties and a $1.1 million increase in gross profit related to divested properties. Comparable funeral gross profit decreased $29.5 million to $242.5 million, and the comparable gross profit percentage declined from 22.2% to 20.0%. The decline primarily reflects the impact of lower revenue combined with increases in our fixed-cost operating structure and higher selling compensation costs on increased preneed sales production.

FORM 10-Q 38

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 June 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $55.6 million, or 6.1%, in the six months ended June 30, 2026 compared to the same period in 2025, primarily due to a $53.7 million, or 5.9%, increase in comparable cemetery revenue and a $1.9 million increase in revenue contributed by acquired and newly constructed properties.

The $53.7 million increase in comparable cemetery revenue was attributable to a $39.6 million increase in comparable cemetery core revenue and an increase in other revenue of $14.1 million. The increase in core revenue was primarily due to a $43.7 million increase in recognized preneed revenue, partially offset by a $4.1 million decrease in atneed revenue. The increase in recognized preneed property revenue primarily related to increased preneed property production and the timing of newly constructed property versus the prior year. Preneed sales production increased $61.4 million, or 8.8%, a portion of which will benefit us in future periods, as we provide the products and services or as undeveloped property sold is constructed and recognized.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $22.8 million, or 7.8%, in the six months ended June 30, 2026 compared to the same period in 2025. This increase is primarily attributable to a $21.7 million increase in comparable cemetery gross profit and a $1.1 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $292.9 million to $314.6 million, and the gross profit percentage increased from 32.2% to 32.7% 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 $8.5 million to $85.7 million for the six months ended June 30, 2026. The prior year included a $6.4 million charge related to the settlement of certain legal matters. The remaining decrease is due in part to higher auto and general liability claims in the prior year.

(Losses) Gains on Divestitures and Impairment Charges, Net

We recognized a $1.1 million net pre-tax gain on asset divestitures and impairments in the six months ended June 30, 2026 compared to a $9.0 million net pre-tax gain in the six months ended June 30, 2025 on asset divestitures due to non-strategic asset divestitures.

Interest Expense

Interest expense increased $3.2 million to $128.7 million for the six months ended June 30, 2026 primarily due to higher average debt outstanding, partially offset by lower interest rates on our floating-rate debt.

Other (Expense) Income, Net

Other income, net decreased $5.7 million to $1.3 million for the six months ended June 30, 2026 primarily due to the change in foreign currency exchange rates compared to the prior year.

FORM 10-Q 39

PART I

Provision for Income Taxes

Our effective tax rate was 25.1% and 25.7% for the six months ended June 30, 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 first quarter of 2026. The effective tax rate 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 139.1 million for the six months ended June 30, 2026 compared to 144.1 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.