SERVICE CORP INTERNATIONAL
For the period ended Dec 31, 2025. Filed Feb 12, 2026.
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FY2025 · Filed Feb 12, 2026
Contents
Note
- Retirement Plans
We currently have a supplemental retirement plan for certain current and former key employees (SERP), a supplemental retirement plan for officers and certain key employees (Senior SERP), and a Stewart Supplemental Retirement Plan (collectively, the “Plans”). All of our Plans are unfunded and have a measurement date of December 31.
The Plans are frozen; therefore, the participants do not earn incremental benefits from additional years of service, and we do not incur any additional service cost.
Retirement benefits under the SERP are based on years of service and average monthly compensation, reduced by benefits under Social Security. The Senior SERP provides retirement benefits based on years of service and position.
We recognize pension related gains and losses in Other income, net on our Consolidated Statement of Operations in the year such gains and losses are incurred. The components of the Plans’ net periodic benefit cost were as follows:
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands) | |||
| Interest cost on projected benefit obligation | $678 | $674 | $797 |
| Recognized net actuarial (gain) loss | (154) | (995) | 654 |
| Total net periodic benefit (gain) cost | $524 | $(321) | $1,451 |
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The Plans’ funded status were as follows:
| Years Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In thousands) | ||
| Change in Benefit Obligation: | ||
| Benefit obligation at beginning of year | $13,332 | $15,363 |
| Interest cost | 678 | 674 |
| Actuarial gain | (154) | (995) |
| Benefits paid | (1,572) | (1,710) |
| Benefit obligation at end of year | $12,284 | $13,332 |
| Change in Plan Assets: | ||
| Fair value of plan assets at beginning of year | $— | $— |
| Employer contributions | 1,572 | 1,710 |
| Benefits paid, including expenses | (1,572) | (1,710) |
| Fair value of plan assets at end of year | $— | $— |
| Funded status of plan | $(12,284) | $(13,332) |
| Funding Summary: | ||
| Projected benefit obligation | $12,284 | $13,332 |
| Accumulated benefit obligation | $12,284 | $13,332 |
| Amounts Recognized in the Consolidated Balance Sheet: | ||
| Included in Accounts payable and accrued liabilities | $(1,518) | $(1,825) |
| Included in Other liabilities | (10,766) | (11,507) |
| Total accrued liability | $(12,284) | $(13,332) |
The retirement benefits under the Plans are unfunded obligations of the Company. We have purchased various life insurance policies on certain participants in the Plans with the intent to use the proceeds or any cash value buildup from these policies to assist in meeting, at least to the extent of such assets, the Plans' funding requirements. The face value of these insurance policies at December 31, 2025 and 2024 was$37.7 million and $37.1 million, respectively, and the cash surrender value was$30.8 million and $30.1 million, respectively. The outstan ding loans against the policies are minimal and there are no restrictions in the policies regarding loans.
The Plans’ weighted-average assumptions used to determine the benefit obligation and net periodic benefit cost are as follows:
| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Weighted-average discount rate used to determine obligations | 4.97% | 5.41% | 4.94% |
| Weighted-average discount rate used to determine net periodic benefit cost | 5.37% | 4.94% | 5.34% |
We determine our discount rate used to compute future benefit obligations using an analysis of expected future benefit payments. The reasonableness of our discount rate is verified by comparing the rate to the rate earned on high-quality fixed income investments, such as the Moody’s Aa index, plus 50 basis points. The assumed rate of return on plan assets was not applicable as we pay plan benefits as they come due. As all Plans are frozen, the assumed rate of compensation increase iszero.
76 Service Corporation International
PART II
The following benefit payments are expected to be paid over the next ten years related to our Plans (in thousands):
| 2026 | $1,518 |
| 2027 | 1,453 |
| 2028 | 1,384 |
| 2029 | 1,286 |
| 2030 | 1,230 |
| Years 2031 through 2035 | 5,413 |
| Total expected benefit payments | $12,284 |
We also have an employee savings plan that qualifies under Section 401(k) of the Internal Revenue Code for the exclusive benefit of our United States employees. Under the plan, participating employees may contribute a portion of their pretax and/or after-tax income in accordance with specified guidelines up to a maximum of 50%.
During 2025, 2024, and 2023, we matched a percentage of the employee contributions through contributions of cash. For these years, our matching contribution was based upon the following:
| Years of Vesting Service | Percentage of Deferred Compensation |
|---|---|
| 0 — 5 years | 75% of the first 6% of deferred compensation |
| 6 — 10 years | 100% of the first 6% of deferred compensation |
| 11 or more years | 125% of the first 6% of deferred compensation |
The amount of our matched contributions in 2025, 2024, and 2023 was $56.2 million, $54.5 million, and $52.8 million, respectively.
- Segment Reporting
Our operations are both product-based and geography-based, and the reportable and operating segments presented below include our funeral and cemetery operations. Our geographic areas include the United States and Canada, where we conduct both funeral and cemetery operations.
Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who is responsible for making key operating, finance, and capital allocation decisions and specifically uses segment gross profit to aid in the decision making and to assess the performance of the operating segments.
Our reportable segment information, including disaggregated revenue, was as follows and includes a reconciliation of gross profit to our consolidated income before income taxes.
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| Years Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| (In thousands) | |||
| Funeral revenue: | |||
| Atneed revenue | $1,209,585 | $1,185,801 | $1,185,413 |
| Matured preneed revenue | 769,136 | 725,810 | 715,298 |
| Core funeral revenue | 1,978,721 | 1,911,611 | 1,900,711 |
| Non-funeral home revenue | 107,630 | 94,763 | 85,904 |
| Non-funeral home preneed sales revenue | 93,195 | 104,763 | 134,770 |
| Core general agency and other revenue | 225,984 | 213,063 | 181,646 |
| Total funeral revenue | 2,405,530 | 2,324,200 | 2,303,031 |
| Direct cost | (344,053) | (344,133) | (351,327) |
| Selling compensation | (192,129) | (177,887) | (173,430) |
| Salaries & fringe expense | (670,790) | (653,753) | (636,763) |
| Facility expenses | (272,295) | (258,556) | (240,553) |
| Other costs and overhead | (430,496) | (424,609) | (403,852) |
| Total funeral expense | (1,909,763) | (1,858,938) | (1,805,925) |
| Funeral gross profit | $495,767 | $465,262 | $497,106 |
| Cemetery revenue: | |||
| Atneed revenue | 435,682 | 431,966 | 433,925 |
| Recognized preneed property revenue | 896,166 | 892,657 | 874,724 |
| Recognized preneed merchandise and services revenue | 421,696 | 402,972 | 365,018 |
| Core cemetery revenue | 1,753,544 | 1,727,595 | 1,673,667 |
| Other revenue | 150,160 | 134,584 | 123,080 |
| Total cemetery revenue | 1,903,704 | 1,862,179 | 1,796,747 |
| Direct cost | (252,144) | (258,339) | (261,826) |
| Selling compensation | (344,764) | (329,080) | (327,154) |
| Maintenance expense | (267,668) | (261,570) | (247,790) |
| Other costs and overhead | (394,821) | (387,795) | (365,276) |
| Total cemetery expense | (1,259,397) | (1,236,784) | (1,202,046) |
| Cemetery gross profit | $644,307 | $625,395 | $594,701 |
| Total revenue from customers | 4,309,234 | 4,186,379 | 4,099,778 |
| Total segment expenses | (3,169,160) | (3,095,722) | (3,007,971) |
| Gross profit from reportable segments | 1,140,074 | 1,090,657 | 1,091,807 |
| Corporate general and administrative expenses | (166,158) | (139,019) | (157,368) |
| Restructuring charge | (1,980) | (11,470) | — |
| Gains (loss) on divestitures and impairment charges, net | 6,151 | (12,488) | 9,816 |
| Operating income | 978,087 | 927,680 | 944,255 |
| Interest expense | (255,372) | (257,771) | (239,447) |
| Losses on early extinguishment of debt, net | (523) | (25) | (1,114) |
| Other income, net | 7,591 | 5,534 | 4,912 |
| Income before income taxes | $729,783 | $675,418 | $708,606 |
78 Service Corporation International
PART II
Other reportable segment information as of and for the year ended December 31 was as follows:
| Reportable Segments · Total | |||||
|---|---|---|---|---|---|
| Funeral | Cemetery | Segments | Corporate | Consolidated | |
| (In thousands) | |||||
| Interest expense | $7,810 | $1,104 | $8,914 | $246,458 | $255,372 |
| Depreciation and amortization | $153,928 | $55,733 | $209,661 | $9,993 | $219,654 |
| Amortization of intangibles | $10,082 | $6,285 | $16,367 | $3 | $16,370 |
| Amortization of cemetery property | $— | $104,262 | $104,262 | $— | $104,262 |
| Capital expenditures | $151,208 | $234,498 | $385,706 | $2,847 | $388,553 |
| Total assets | $7,296,780 | $10,690,258 | $17,987,038 | $667,474 | $18,654,512 |
| Interest expense | $4,073 | $893 | $4,966 | $252,805 | $257,771 |
| Depreciation and amortization | $145,759 | $51,254 | $197,013 | $11,198 | $208,211 |
| Amortization of intangibles | $10,544 | $6,670 | $17,214 | $8 | $17,222 |
| Amortization of cemetery property | $— | $102,510 | $102,510 | $— | $102,510 |
| Capital expenditures | $134,210 | $231,712 | $365,922 | $7,737 | $373,659 |
| Total assets | $6,996,897 | $9,868,033 | $16,864,930 | $514,508 | $17,379,438 |
| Interest expense | $2,092 | $764 | $2,856 | $236,591 | $239,447 |
| Depreciation and amortization | $133,544 | $46,713 | $180,257 | $11,015 | $191,272 |
| Amortization of intangibles | $12,025 | $6,706 | $18,731 | $5 | $18,736 |
| Amortization of cemetery property | $— | $101,234 | $101,234 | $— | $101,234 |
| Capital expenditures | $125,922 | $212,406 | $338,328 | $23,465 | $361,793 |
Our geographic area information as of and for the year ended December 31 was as follows:
| United States | Canada | Total | |
|---|---|---|---|
| (In thousands) | |||
| Revenue from external customers | $4,095,100 | $214,134 | $4,309,234 |
| Interest expense | $254,984 | $388 | $255,372 |
| Depreciation and amortization | $207,148 | $12,506 | $219,654 |
| Amortization of intangibles | $16,162 | $208 | $16,370 |
| Amortization of cemetery property | $100,976 | $3,286 | $104,262 |
| Operating income | $924,706 | $53,381 | $978,087 |
| Gain on divestitures and impairment charges, net | $6,046 | $105 | $6,151 |
| Long-lived assets | $8,122,372 | $360,941 | $8,483,313 |
| Revenue from external customers | $3,967,573 | $218,806 | $4,186,379 |
| Interest expense | $257,383 | $388 | $257,771 |
| Depreciation and amortization | $196,281 | $11,930 | $208,211 |
| Amortization of intangibles | $16,996 | $226 | $17,222 |
| Amortization of cemetery property | $98,610 | $3,900 | $102,510 |
| Operating income | $871,760 | $55,920 | $927,680 |
| (Loss) gain on divestitures and impairment charges, net | $(13,471) | $983 | $(12,488) |
| Long-lived assets | $7,786,598 | $322,146 | $8,108,744 |
| Revenue from external customers | $3,881,333 | $218,445 | $4,099,778 |
| Interest expense | $239,103 | $344 | $239,447 |
| Depreciation and amortization | $180,093 | $11,179 | $191,272 |
| Amortization of intangibles | $18,495 | $241 | $18,736 |
| Amortization of cemetery property | $97,471 | $3,763 | $101,234 |
| Operating income | $887,110 | $57,145 | $944,255 |
| Gain on divestitures and impairment charges, net | $8,512 | $1,304 | $9,816 |
FORM 10-K 79
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