SERVICE CORP INTERNATIONAL

Results of Operations — Three and Nine months ended September 30, 2026 and 2025

Three Months Ended September 30, 2026 and 2025

Management Summary

In the third quarter of 2026, we reported consolidated net income attributable to common stockholders of $141.3 million ($1.03 per diluted share) compared to net income attributable to common stockholders in the third quarter of 2025 of $117.5 million ($0.83 per diluted share). These results were impacted by certain items including:

In addition to the above items, the increase was due to higher funeral and cemetery gross profit combined with lower corporate general and administrative expenses and a lower share count over prior-year quarter. This increase was offset by higher healthcare costs, selling compensation, and costs associated with targeted sales initiatives supporting our higher preneed production.

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 September 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 $602.6 million for the three months ended September 30, 2026 compared to $574.1 million for the same period in 2025. This $28.5 million increase is primarily attributable to an $18.7 million increase in comparable revenue and a $10.7 million increase in revenue from acquired and newly constructed properties, partially offset by a $0.9 million decrease in revenue associated with divested properties.

Comparable revenue from funeral operations was $588.2 million for the three months ended September 30, 2026 compared to $569.5 million for the same period in 2025. This $18.7 million, or 3.3%, increase was due to a $13.3 million increase in adjusted comparable funeral revenue and a $7.1 million increase in core general agency and other revenue, partially offset by a $1.7 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $13.3 million due to a 2.8% increase in comparable average revenue per service, partially offset by a 0.1% decrease in comparable funeral services performed. The total comparable cremation rate increased by 60 basis points to 65.0%.

Non-funeral home preneed sales revenue decreased $1.7 million, primarily due to a reduction in general agency revenue. While non-funeral home insurance sales production increased 9.3%, a lower general agency commission rate impacted revenue quarter over quarter.

Core general agency and other revenue grew $7.1 million. Core general agency revenue benefited from higher insurance sales production partially offset by a slightly lower general agency commission rate quarter over quarter. The current commission rate is generally stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit increased $5.3 million, or 5.3%, for the three months ended September 30, 2026 compared to the same period in 2025, primarily attributable to a $3.6 million, or 3.6%, increase in comparable funeral gross profit and a $1.6 million increase in gross profit contributed by newly constructed and acquired properties. Comparable funeral gross profit increased from $100.2 million to $103.8 million, and the comparable gross profit percentage was 17.6% in both periods. Comparable funeral revenue increased $18.7 million which was partially offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. In addition, we experienced an increase in health insurance expense.

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 September 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $20.6 million, or 4.3%, for the three months ended September 30, 2026 compared to the same period in 2025 primarily due to a $19.4 million increase in comparable cemetery revenue and a $1.2 million increase in revenue contributed by newly constructed and acquired properties.

Comparable cemetery revenue increased $19.4 million, or 4.0%, for the three months ended September 30, 2026 primarily due to higher comparable core revenue of $11.9 million and higher comparable other revenue of $7.5 million. The comparable core revenue increase of $11.9 million was primarily due to a $13.6 million, or 4.0%, increase in total recognized preneed revenue from higher property and merchandise and service revenue. This includes the benefit of increased trust fund income. Additionally, recognized preneed cemetery property revenue grew 1.2%, while preneed property sales production increased 4.2%. This dynamic puts near-term pressure on cemetery gross margins but builds the backlog of revenue to be recognized in future periods.

Other revenue was $7.5 million, or 19.7%, higher compared to the prior-year quarter, primarily due to 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 $1.5 million, or 0.9%, in the three months ended September 30, 2026 compared to the same period in 2025, which is primarily attributable to a $1.1 million increase in comparable cemetery gross profit. Comparable cemetery gross profit increased $1.1 million to $167.1 million. The gross profit percentage decreased from 34.3% to 33.2%. Comparable cemetery revenue increased $19.4 million which was largely offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. Changes to our sales compensation structure, which increased guaranteed hourly wages, resulted in a higher selling compensation rate. In addition, this resulted in more selling costs being recognized in the current period rather than deferred, which will reduce selling compensation expense recognized in subsequent periods. We also experienced an increase in health insurance expense. While these elevated costs are pressuring cemetery gross margins, the growth in preneed sales production continues to strengthen our backlog with high quality deferred property, merchandise and service revenue, which will benefit future periods.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $7.7 million to $30.6 million in the third quarter of 2026 compared to the third quarter of 2025 of $38.3 million. The decrease was driven primarily by lower long-term incentive compensation expense tied to total shareholder return and a favorable legal settlement.

Gains (losses) on Divestitures and Impairment Charges, Net

Gains (losses) on divestitures and impairment charges, net increased to $11.2 million in the third quarter of 2026 due to non-strategic asset divestitures of excess land compared to a $0.4 million net pre-tax loss in the third quarter of 2025.

Interest Expense

Interest expense decreased $0.7 million to $65.0 million for the three months ended September 30, 2026 due to lower rates on floating rate debt more than offsetting higher balances.

FORM 10-Q 36

PART I

Provision for Income Taxes

Our effective tax rate was 25.1% and 26.9% for the three months ended September 30, 2026 and 2025, respectively. The higher effective tax rate in the prior period was primarily due to a change in estimate recorded in the prior year related to the finalization of the 2024 tax return. 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 137.2 million for the three months ended September 30, 2026 compared to 141.4 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Nine Months Ended September 30, 2026 and 2025

Management Summary

In the first nine months of 2026, we reported consolidated net income attributable to common stockholders of $401.9 million ($2.90 per diluted share) compared to net income attributable to common stockholders for the same period in 2025 of $383.2 million ($2.68 per diluted share). These results were impacted by certain items including:

In addition to the above items, lower funeral gross profit resulting from lower funeral volumes during the year was more than offset by higher cemetery gross profit combined with lower corporate general and administrative expenses, 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 September 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 $1,838.0 million for the nine months ended September 30, 2026, compared to $1,804.9 million for the same period in 2025. This $33.1 million increase in revenue is primarily attributable to a $29.9 million increase in revenue contributed by newly constructed and acquired properties and a $6.3 million increase in comparable revenue, partially offset by a $3.1 million decrease in revenue related to divested properties.

Comparable revenue from funeral operations was $1,800.9 million for the nine months ended September 30, 2026 compared to $1,794.6 million for the same period in 2025. The $6.3 million, or 0.4%, increase was due to a $6.7 million increase in core general agency and other revenue, a $6.6 million increase in adjusted comparable funeral revenue, both partially offset by a $7.0 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $6.6 million, or 0.4%, primarily due to a 3.2% increase in comparable average revenue per service, partially offset by a 2.7% decrease in comparable funeral services performed. The total comparable cremation rate slightly increased 70 basis points over the prior year to 64.9%.

Non-funeral home preneed sales revenue decreased $7.0 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 revenue in future periods. This can be seen as our comparable non-funeral home average revenue per service increased 9.0% over the prior year.

Core general agency and other revenue increased $6.7 million. Core general agency revenue benefited from higher insurance sales production partially offset by a lower general agency commission rate year over year. The current commission rate is generally stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit decreased $20.4 million, or 5.5%, in the first nine months of 2026 compared to the same period in 2025. This decrease is primarily attributable to a $25.9 million, or 7.0%, decrease in comparable funeral gross profit, partially offset by a $4.4 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 $25.9 million to $346.5 million, and the comparable gross profit percentage declined from 20.8% to 19.2%. The decline primarily reflects lower funeral volumes, combined with increases in our fixed-cost operating structure. Higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production also contributed to the decline. In addition, we experienced an increase in health insurance expense.

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 September 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $76.2 million, or 5.5%, in the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to a $73.1 million, or 5.2%, increase in comparable cemetery revenue and a $3.2 million increase in revenue contributed by acquired and newly constructed properties.

The $73.1 million increase in comparable cemetery revenue was attributable to a $51.5 million increase in comparable cemetery core revenue and an increase in other revenue of $21.6 million. The increase in core revenue was primarily due to a $57.3 million increase in recognized preneed revenue, partially offset by a $5.7 million decrease in atneed revenue. Additionally, recognized preneed cemetery property revenue grew 4.4%, while preneed property sales production increased 7.1%. This dynamic puts near-term pressure on cemetery gross margins but builds the backlog of revenue to be recognized in future periods.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $24.2 million, or 5.3%, in the nine months ended September 30, 2026 compared to the same period in 2025. This increase is primarily attributable to a $22.8 million increase in comparable cemetery gross profit and a $1.5 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $458.9 million to $481.7 million, and the gross profit percentage slightly decreased from 33.0% to 32.9% primarily due to the growth in core revenue mentioned above, partially offset by the impact of higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. In addition, we experienced an increase in health insurance expense.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $16.2 million to $116.3 million for the nine months ended September 30, 2026. Of the decrease, $6.4 million was due to the settlement of certain legal matters in prior year, with the remainder primarily due to favorable adjustments to self-insurance actuarial reserves for workers’ compensation, general liability and auto based on improved claims experience.

Gains (losses) on Divestitures and Impairment Charges, Net

Gains (losses) on divestitures and impairment charges, net increased to $12.3 million in the nine months ended September 30, 2026 due to non-strategic asset divestitures of excess land compared to an $8.6 million net pre-tax gain in the nine months ended September 30, 2025.

Interest Expense

Interest expense increased $2.5 million to $193.7 million for the nine months ended September 30, 2026 primarily due to higher average debt outstanding, partially offset by lower interest rates on our floating-rate debt. During the nine months ended September 30, 2026, our floating-rate debt carried a weighted average rate of 4.1%, which is over 230 basis points lower than the weighted average rate for our floating rate debt in the prior year.

FORM 10-Q 39

PART I

Other Income, Net

Other income, net decreased $5.0 million to $2.2 million for the nine months ended September 30, 2026 primarily due to the change in foreign currency exchange rates and lower investment income compared to the prior year.

Provision for Income Taxes

Our effective tax rate was 25.1% and 26.1% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the effective tax rate in the current period was primarily due to a change in estimate recorded in the prior year related to the finalization of the 2024 tax return. 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 138.5 million for the nine months ended September 30, 2026 compared to 143.2 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.