Question · Q3 2025
Donnie Longfellow, on behalf of Scott Schneeberger, inquired about the trends in cemetery preneed sales production velocity, year-on-year comparisons, implications for consumers, and the sustainability of these trends into the next year. He also asked about the confidence level in achieving the 8-12% EPS growth target for next year and any unique cash flow considerations.
Answer
Tom Ryan, Chairman and CEO, Service Corporation International, highlighted strong velocity in cemetery sales, driven by flexible financing and effective sales management, with significant growth in large sales and core sales. He expressed confidence in sustaining these trends and achieving the 8-12% EPS growth, citing historical performance and revenue drivers. Eric Tanzberger, CFO, Service Corporation International, elaborated on cash flow, particularly cash taxes, noting a $40 million reduction due to new federal tax legislation and accelerated depreciation, while maintaining expectations for maintenance capital expenditures and strong free cash flow per share.