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What changed in SERVICE CORP INTERNATIONAL's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of SERVICE CORP INTERNATIONAL's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+221 added−205 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-13)

Top changes in SERVICE CORP INTERNATIONAL's 2025 10-K

221 paragraphs added · 205 removed · 181 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

57 edited+14 added−10 removed51 unchanged
Biggest changeThe following table at December 31, 2024 provides the number of our funeral service locations and cemeteries by country, and by state, territory, or province: Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total United States Alabama 34 13 47 Arizona 39 12 51 Arkansas 11 3 14 California 170 42 212 Colorado 29 11 40 Connecticut 21 — 21 Delaware — 1 1 District of Columbia 1 — 1 Florida 140 64 204 Georgia 31 18 49 Hawaii 8 3 11 Idaho 1 — 1 Illinois 43 27 70 Indiana 48 14 62 Iowa 6 2 8 Kansas 8 5 13 Kentucky 12 4 16 Louisiana 33 11 44 Maine 8 — 8 Maryland 15 13 28 Massachusetts 27 — 27 Michigan 40 — 40 Minnesota 8 2 10 Mississippi 12 3 15 Missouri 25 10 35 Nebraska 8 2 10 Nevada 15 6 21 New Hampshire 4 — 4 New Jersey 21 — 21 New Mexico 1 1 2 New York 52 — 52 FORM 10-K 7 PART I Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total North Carolina 48 17 65 Ohio 48 14 62 Oklahoma 12 7 19 Oregon 14 4 18 Pennsylvania 25 16 41 Puerto Rico 6 9 15 Rhode Island 6 — 6 South Carolina 12 9 21 Tennessee 43 18 61 Texas 164 65 229 Utah 4 3 7 Virginia 37 24 61 Washington 35 15 50 West Virginia 6 6 12 Wisconsin — 7 7 Canada Alberta 9 — 9 British Columbia 37 11 48 Manitoba 4 3 7 New Brunswick 7 — 7 Nova Scotia 12 — 12 Ontario 42 — 42 Quebec 38 1 39 Saskatchewan 13 — 13 Total funeral service locations and cemeteries 1,493 496 1,989 We believe we have satisfactory title to the properties owned and used in our business, subject to various liens, encumbrances, and easements that are incidental to ownership rights and uses and do not materially detract from the value of the property.
Biggest changeThe following table at December 31, 2025 provides the number of our funeral service locations and cemeteries by country, and by state, territory, or province: Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total United States Alabama 35 13 48 Arizona 39 13 52 Arkansas 11 3 14 California 166 43 209 Colorado 29 11 40 Connecticut 21 — 21 Delaware — 1 1 District of Columbia 2 — 2 Florida 137 64 201 Georgia 30 18 48 Hawaii 8 3 11 Idaho 1 — 1 Illinois 42 27 69 Indiana 50 14 64 Iowa 6 2 8 Kansas 8 5 13 Kentucky 14 5 19 Louisiana 33 11 44 Maine 7 — 7 Maryland 16 13 29 Massachusetts 27 — 27 Michigan 40 — 40 Minnesota 8 2 10 Mississippi 12 3 15 Missouri 23 10 33 Nebraska 8 2 10 Nevada 15 6 21 New Hampshire 4 — 4 New Jersey 21 — 21 New Mexico 1 1 2 FORM 10-K 7 PART I Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total New York 54 — 54 North Carolina 51 17 68 Ohio 45 14 59 Oklahoma 11 7 18 Oregon 14 4 18 Pennsylvania 25 16 41 Puerto Rico 6 9 15 Rhode Island 6 — 6 South Carolina 12 9 21 Tennessee 42 18 60 Texas 164 65 229 Utah 4 3 7 Virginia 38 24 62 Washington 33 15 48 West Virginia 5 6 11 Wisconsin — 7 7 Canada Alberta 9 — 9 British Columbia 37 11 48 Manitoba 4 3 7 New Brunswick 6 — 6 Nova Scotia 12 — 12 Ontario 45 — 45 Quebec 36 2 38 Saskatchewan 12 — 12 Total funeral service locations and cemeteries 1,485 500 1,985 We believe we have satisfactory title to the properties owned and used in our business, subject to various liens, encumbrances, and easements that are incidental to ownership rights and uses and do not materially detract from the value of the property.
We own a building in Jefferson, Louisiana with approximately 96,200 square feet of office space that we use, in part, for corporate activities. 8 Service Corporation International PART I A map of our locations in North America is presented below: FORM 10-K 9 PART I Competition Although there are several public companies that own funeral service locations and cemeteries, the majority of deathcare businesses in North America are locally-owned, independent operations.
We also own a building in Jefferson, Louisiana with approximately 96,200 square feet of office space that we use, in part, for corporate activities. 8 Service Corporation International PART I A map of our locations in North America is presented below: FORM 10-K 9 PART I Competition Although there are several public companies that own funeral service locations and cemeteries, the majority of deathcare businesses in North America are locally-owned, independent operations.
While this branding process is intended to emphasize our seamless national network of funeral service locations and cemeteries, the original names associated with acquired operations, and their inherent goodwill and heritage, generally remain the same. For example, Geo. H. Lewis & Sons Funeral Directors is now Geo. H. Lewis & Sons Funeral Directors, a Dignity Memorial ® provider.
While this branding is intended to emphasize our seamless national network of funeral service locations and cemeteries, the original names associated with acquired operations, and their inherent goodwill and heritage, generally remain the same. For example, Geo. H. Lewis & Sons Funeral Directors is now Geo. H. Lewis & Sons Funeral Directors, a Dignity Memorial ® provider.
We expect to see a similar impact on our atneed results as these preneed contracts mature in the future. In every aspect of our business, we are listening and responding to our customer’s changing needs and leveraging our scale to deliver unparalleled experiences - both digitally and in person - to meet those changing needs.
We expect to see a similar impact on our atneed results as these preneed contracts mature in the future. In every aspect of our business, we are listening and responding to our customer’s changing needs and preferences, and leveraging our scale to deliver unparalleled experiences - both digitally and in person - to meet those changing needs.
Additionally, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many university partnerships. We are also proud to offer scholarship and apprentice programs to those interested in joining our profession.
Additionally, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many partnerships. We are also proud to offer scholarship and apprentice programs to those interested in joining our profession.
Baby Boomers have been influencing both our funeral and cemetery preneed sales for several years and are beginning to positively affect the growth of our preneed funeral sales programs. Our highly trained sales force of approximately 3,600 counselors provide customers with informed guidance about various service and merchandise options tailored for today’s consumers.
Baby Boomers have been influencing both our funeral and cemetery preneed sales for several years and are beginning to positively affect the growth of our preneed funeral sales programs. Our highly trained sales force of approximately 3,800 counselors provide customers with informed guidance about various service and merchandise options tailored for today’s consumers.
In each stage of life, Baby Boomers have set new trends, transformed society, and redefined norms, and we are already seeing the impact on our industry. Over the last five years, we have seen the impact of the Baby Boomers through the growth in both our preneed cemetery sales and our preneed funeral production.
In each stage of life, Baby Boomers have set new trends, transformed society, and redefined norms, and we are already seeing the impact on our industry. Over the last several years, we have seen the impact of the Baby Boomers through the growth in both our preneed cemetery sales and our preneed funeral production.
As our preneed backlog grows from the development of our sales organization, the backlog also realizes scale benefits from the ability to grow trust portfolios and from our our preferred preneed insurance provider agreement . Our scale also enables cost efficiencies through purchasing power and utilizing economies of scale through our supply chain channel.
As our preneed backlog grows from the development of our sales organization, the backlog also realizes scale benefits from the ability to grow trust portfolios and from our preferred preneed insurance provider agreement . In addition, scale also enables cost efficiencies through purchasing power and utilizing economies of scale through our supply chain channel.
The success of a single funeral service location or cemetery in any community is a function of the name, reputation, and location of that funeral service location or cemetery. Competitive pricing, professional service and attention, and well-maintained locations are also important.
The success of a single funeral service location or cemetery in any community is a function of the name, reputation, and location of that funeral service location or cemetery. Competitive pricing, professional service, attention to detail, and well-maintained locations are also important.
Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.30 per common share at the end of 2024. We target a dividend payout ratio of 30% to 40% of after-tax earnings excluding special items and intend to grow our cash dividend commensurate with the growth in our business.
Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.34 per common share at the end of 2025. We target a dividend payout ratio of 30% to 40% of after-tax earnings excluding special items and intend to grow our cash dividend commensurate with the growth in our business.
Although labor disputes occur from time to time, relations with associates are generally considered favorable. We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary surveys in an effort to determine if we are meeting the needs and expectations of our workforce.
Although labor disputes occur from time to time, relations with associates are generall y considered favorable. We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary employee surveys in an effort to determine if we are meeting the needs and expectations of our workforce.
From high-end family estates, many of which capture incredible views, to nicely landscaped hedge estates, we continue to develop property selections that resonate with our customers. For cemetery merchandise and services, we have developed relevant products such as customized cemetery property offerings, and specialized graveside service options.
From private high-end family estates, many of which capture incredible views and custom architectural features, to nicely landscaped hedge estates, we continue to develop property selections that resonate with our customers. For cemetery merchandise and services, we have developed relevant products such as customized cemetery property offerings, and specialized graveside service options.
The ARCs, which are available to all associates, allow colleagues with similar backgrounds or interests to connect for networking, provide opportunities for mentorship, and support the communities and customers we serve. Our leadership team embraces the many backgrounds and perspectives that make each of us unique, which allows us to remain relevant to the families we serve.
The ARCs, which are available to all associates, allow colleagues with similar backgrounds or interests to connect for networking, provide opportunities for mentorship, and support the communities and customers we serve. Our leadership team embraces the many backgrounds and perspectives that make each of us unique.
Associates covered by a collective bargaining agreement are typically covered by union health plans and, therefore, do not participate in our health insurance plan. At December 31, 2024 and 2023, there were 9,462 and 9,779 associates, respectively, who had elected to participate in our group health insurance plans.
Associates covered by a collective bargaining agreement are typically covered by union health plans and, therefore, do not participate in our health insurance plan. At December 31, 2025 and 2024, there were 9,526 and 9,462 associates, respectively, who had elected to participate in our group health insurance plans.
We continue to embrace cremation offerings for customers in our cemetery segment offering an increased variety of cremation property options, including glass-front cremation niches and cremation gardens. As we evolve to meet ever-changing customer preferences, we will continue to serve the numerous religious, ethnic, and cultural traditions important to many of our customers.
We continue to place strategic emphasis on cremation offerings for customers in our cemetery segment offering an increased variety of cremation property options, including glass-front cremation niches and cremation gardens. As we evolve to meet ever-changing customer preferences, we will continue to serve the numerous religious, ethnic, and cultural traditions important to many of our customers.
She also earned Juris Doctor, Master of Arts, and bachelor's degrees from the University of South Dakota. Ms. Nash was named Senior Vice President of Operations Services in 2010 and is currently responsible for a variety of support functions, including human resources, supply chain, centralized operations and program management.
She also earned Juris Doctor, Master of Arts, and bachelor's degrees from the University of South Dakota. FORM 10-K 13 PART I Ms. Nash was named Senior Vice President of Operations Services in 2010 and is currently responsible for a variety of support functions, including human resources, supply chain, centralized operations and program management.
We estimate that our funeral and cemetery market share in North America is approximately 17% based on estimated total industry revenue. Our funeral business has low to moderate barriers to entry, whereas the cemetery business barriers to entry are high due to the requirement of land and permitting along with the requirement of sufficient capital to develop cemetery property.
We estimate that our funeral and cemetery market share in North America is approximately 18% based on estimated total industry revenue. Our funeral business has low to moderate barriers to entry, whereas the cemetery business barriers to entry are high due to land requirements and permitting along with sufficient capital needed to develop cemetery property.
In July 2024, we finalized our agreement to change our preferred preneed insurance provider in the United States, which will allow us to further utilize our scale and streamline our processes across our network.
In July 2024, we finalized an agreement to change our preferred preneed insurance provider in the United States, which allows us to further utilize our scale and streamline our processes across our network.
Utilizing our scale, our counselors are reaching out to consumers through multiple lead channels, driving future revenue growth. We sponsor community events and seminars to educate and provide guidance around preplanning both funeral and cemetery services and merchandise.
Utilizing our scale, our counselors are reaching out to consumers through multiple lead channels, including growing digital lead channels, securing future revenue growth. We sponsor community events and seminars to educate and provide guidance around preplanning both funeral and cemetery services and merchandise.
In addition, the SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers where you may obtain a copy of all of the material we file publicly with the SEC.
In addition, the SEC also maintains a website that contains reports, proxy and information statements, and other information regarding issuers where you may obtain a copy of all of the material we file publicly with the SEC. The SEC website address is http://www.sec.gov .
At December 31, 2024, we operated 1,493 funeral service locations and 496 cemeteries (including 308 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. We are well known for our Dignity Memorial ® brand, North America's first transcontinental brand of deathcare products and services.
At December 31, 2025, we operated 1,485 funeral service locations and 500 cemeteries (including 312 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. We are well known for our Dignity Memorial ® brand, North America's first transcontinental brand of deathcare products and services.
Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and other cremation memorialization and interment options. Cemetery merchandise and services, including memorial cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and interments, are sold at our cemeteries.
Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and custom inventory, including private mausoleums, family estates, and exclusive cremation memorialization options. Cemetery merchandise and services, including memorial cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and interments, are sold at our cemeteries.
This investment in our future will allow us to continue creating cemetery offerings that appeal to varying preferences in those markets for many years to come. In 2024, we invested $181.2 million in acquiring 26 funeral service locations and 6 cemeteries, which included 3 combination locations.
This investment in our future will allow us to continue creating cemetery offerings that appeal to varying preferences in those markets for many years to come. In 2025, we invested $101.3 million in acquiring 22 funeral service locations and 2 cemeteries, which included 2 combination locations.
Preneed Backlog Scale Benefits Our preneed backlog, which includes both insurance and trust-funded merchandise and service products, allows us to grow future revenue in a more efficient manner than selling at the time of need.
Our scale allows us to operate and expand our sales organization in an efficient manner to bolster preneed sales growth. Preneed Backlog Scale Benefits Our preneed backlog, which includes both insurance and trust-funded merchandise and service products, allows us to grow future revenue in a more efficient manner than selling at the time of need.
As a result of such preneed sales, our preneed backlog of unfulfilled funeral and cemetery contracts was $16.0 billion and $14.8 billion at December 31, 2024 and 2023, respectively.
As a result of such preneed sales, our preneed backlog of unfulfilled funeral and cemetery contracts was $17.0 billion and $16.0 billion at December 31, 2025 and 2024, respectively.
For our cemetery businesses, we plan to pursue strategic acquisitions to create more opportunities to serve Baby Boomers through our tiered cemetery options. Additionally, we acquire land for future cemetery development in some of our largest markets.
For our cemetery businesses, we plan to pursue strategic acquisitions to create more opportunities to serve consumers through our tiered cemetery options. Additionally, we look for opportunities to acquire land for future cemetery development in certain of our largest markets.
FORM 10-K 5 PART I Training and Development We provide opportunities for career growth and supporting the personal and professional goals of our associates is a priority for us. Our associates have access to development programs and a robust online training portal offering thousands of courses, books, audiobooks, and videos.
FORM 10-K 5 PART I Training and Development We also believe in creating a culture of opportunity and career growth for all our associates and supporting the personal and professional goals of our associates is a priority for us. Our associates have access to development programs and a robust online training portal offering thousands of courses, books, audiobooks, and videos.
At December 31, 2024, we owned approximately 90% of the real estate and buildings used at our facilities, and the remainder of the facilities were leased under both financing and operating leases. At December 31, 2024, our 496 cemeteries contained a total of approximately 35,800 acres, of which approximately 66% was developed.
At December 31, 2025, we owned approximately 90% of the real estate and buildings used at our facilities, and the remainder of the facilities were leased under both financing and operating leases. At December 31, 2025, our 500 cemeteries contained a total of approximately 36,000 acres, of which approximately 66% was developed.
We also post announcements, updates, events and investor information and presentations on our website in addition to copies of all recent news releases. We may use the Investors section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed material information.
We also post announcements, updates, events, recent news releases and investor information and presentations on our website. We may 12 Service Corporation International PART I use the Investors section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed material information.
We believe in the power of inclusion and respecting our fellow associates’ work, ideas, beliefs, and lifestyles. We have developed programs such as our inclusive leadership training and Associate Resource Communities (ARCs).
We believe in the power of inclusion and respecting our fellow associates’ work, ideas, beliefs, and lifestyles. To further promote this inclusion, we have developed programs such as our Associate Resource Communities (ARCs).
In addition, we spent $62.1 million for several real estate acquisitions that will be utilized for new funeral service or cemetery locations during the twelve months ended December 31, 2024. Return Excess Cash to Shareholders In addition to any strategic acquisition or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program.
In addition, we spent $18.5 million for several real estate acquisitions that will be utilized for new funeral service or cemetery locations during 2025. Return Excess Cash to Shareholders In addition to any strategic acquisitions or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program.
Proceeds from this new bank credit agreement were used to settle our existing Term Loan and Bank Credit Facility due May 2024. Our new bank credit agreement provides us with flexibility for incremental liquidity, capital investment, working capital, and other general corporate purposes.
Proceeds from this new bank credit agreement were used to settle our existing Term Loan and Bank Credit Facility, which were both due January 2028. In addition to more favorable pricing, the new bank credit agreement provides us flexibility with incremental liquidity for capital investment, working capital, and other general corporate purposes.
We also expect that continued growth in our preneed sales will drive future revenue expansion. Remaining Relevant to the Customer Remaining relevant to our customer is key to generating revenue growth in a changing customer environment. We are constantly evolving to meet the varying preferences and needs of our customers.
Remaining Relevant to the Customer Remaining relevant to our customer is key to generating revenue growth in a changing customer environment. We are constantly evolving to meet the varying preferences and needs of our customers.
Prior to joining the Company, Mrs. Moore was a certified public accountant with PricewaterhouseCoopers LLP. She holds a bachelor's degree in business administration in accounting from the University of Texas at San Antonio and a Master of Accounting degree from the Kenan-Flagler Business School at the University of North Carolina. Since 2019, Mrs.
She holds a bachelor's degree in business administration in accounting from the University of Texas at San Antonio and a Master of Accounting degree from the Kenan-Flagler Business School at the University of North Carolina. Since 2019, Mrs.
He joined the Company in 1996 and served in a variety of financial management roles until November 2000, when he was asked to serve as Chief Executive Officer of European Operations based in Paris, France. In July 2002, Mr. Ryan returned to the United States where he was appointed President and Chief Operating Officer of SCI. Before joining SCI, Mr.
Ryan was elected Chairman of the Board of SCI effective in January 2016, appointed Chief Executive Officer in February 2005, and President in 2002. He joined the Company in 1996 and served in a variety of financial management roles until November 2000, when he was asked to serve as Chief Executive Officer of European Operations based in Paris, France.
Human Capital Management At December 31, 2024, we employed 17,685 full-time individuals and 7,268 part-time individuals. Of the full-time associates, 14,946 were employed in the funeral and cemetery operations and 2,739 were employed in corporate or other overhead areas of our business. Approximately 2.4% of our associates are represented by unions.
Human Capital Management At December 31, 2025, we employed 17,869 full-time individuals and 7,318 part-time individuals. Of the full-time associates, 16,556 were employed in the funeral and cemetery operations and 1,313 were employed in corporate areas of our business. Approximately 2.2% of our associates are represented by unions.
In 2024, we repurchased 3,439,551 shares of our common stock at an aggregate cost of $249.8 million, which is an average cost per share of $72.63. In 2023, we repurchased 8,700,767 shares of our common stock at an aggregate cost of $549.6 million, which is an average cost per share of $63.17.
In 2025, we repurchased 5,864,563 shares of our common stock at an aggregate cost of $464.2 million, which is an average cost per share of $79.15. In 2024, we repurchased 3,439,551 shares of our common stock at an aggregate cost of $249.8 million, which is an average cost per share of $72.63.
We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles. This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so.
This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so.
Ryan was a certified public accountant with Coopers & Lybrand LLP for eight years. He holds a bachelor's degree in business administration from the University of Texas at Austin. Mr.
In July 2002, Mr. Ryan returned to the United States where he was appointed President and Chief Operating Officer of SCI. Before joining SCI, Mr. Ryan was a certified public accountant with Coopers & Lybrand LLP for eight years. He holds a bachelor's degree in business administration from the University of Texas at Austin. Mr.
Leverage Our Unparalleled Scale As the largest deathcare company in North America, we leverage our scale by developing our sales organization and with the use of technology through out our network.
Leverage Our Unparalleled Scale As the largest deathcare company in North America, we leverage our unparalleled scale by developing our sales organization and optimizing and responsibly deploying digital innovation throughout our network.
This blended approach also helps our ability to grow our preneed backlog in a cash flow neutral manner as general agency commissions on our preneed insurance sales offset associated selling compensation for both preneed trust and insurance sales.
This blended approach also helps our ability to grow our preneed backlog in a cash flow neutral manner as general agency commissions on our preneed insurance sales offset associated selling compensation for combined preneed trust and insurance sales. Scale-Enabled Procurement and Supply Chain Efficiencies Our scale enables us to leverage purchasing power across merchandise and services driving more favorable pricing.
In addition, we have focused on making the entire cremation experience more meaningful for families, from the first point of contact to the return of a loved one’s ashes to the family.
The growing trend of cremation has resulted in new product and service offerings, including cremation-specific service packages, which may or may not include memorialization. In addition, we have focused on making the entire cremation experience more meaningful for families, from the first point of contact to the return of a loved one’s ashes to the family.
We responded to this trend by spending capital to repurpose traditional casket selection rooms to event rooms that can accommodate a celebration, while also updating existing locations to more contemporary, uplifting spaces. During the arrangement, we offer a customer-friendly digital presentation of options that allows the customer to choose merchandise and services including unique celebration, catering, and celebrant services.
We responded to this trend by spending capital to repurpose traditional casket selection rooms to event rooms that can accommodate a celebration, while also updating existing locations to more contemporary, uplifting spaces.
Waring serves on the Board of Directors of BankFive and the Greater Houston Partnership. Mr. Tanzberger was named Executive Vice President and Chief Financial Officer in 2024. In addition to his current responsibilities, he will now oversee business development, including mergers and acquisitions, construction and real estate, as well as pricing and revenue development.
Waring serves on the Board of Directors of BankFive and the Greater Houston Partnership. Mr. Tanzberger was named Executive Vice President and Chief Financial Officer in 2024. He oversees all finance and accounting functions, business and real estate development, revenue management and information technology.
In January 2023, we entered into a new bank credit agreement that consists of a $675.0 million Term Loan due January 2028 and an increased Bank Credit Facility due January 2028 providing for borrowings of up to $1.5 billion.
In November 2025, we entered into a new bank credit agreement due November 2030 consisting of a $750.0 million term loan, which is funded debt, and a revolving credit facility providing for borrowings of up to $1.75 billion.
The SEC website address is http://www.sec.gov . 12 Service Corporation International PART I Executive Officers of the Company The following table sets forth, as of February 13, 2025, the name and age of each executive officer of the Company, the office held, and the year first elected an officer. Officer Name Age Position Year First Became Officer Thomas L.
Executive Officers of the Company The following table sets forth, as of February 12, 2026, the name and age of each executive officer of the Company, the office held, and the year first elected an officer. Officer Name Age Position Year First Became Officer Thomas L. Ryan 60 Chairman of the Board and Chief Executive Officer 1999 Sumner J.
Ryan 59 Chairman of the Board and Chief Executive Officer 1999 Sumner J. Waring, III 56 President 2002 Eric D. Tanzberger 56 Executive Vice President, Chief Financial Officer 2000 Lori Spilde 54 Senior Vice President, General Counsel and Secretary 2019 Elisabeth G. Nash 63 Senior Vice President, Operations Services 2004 John H.
Waring, III 57 President 2002 Eric D. Tanzberger 57 Executive Vice President, Chief Financial Officer 2000 Lori Spilde 55 Senior Vice President, General Counsel and Secretary 2019 Elisabeth G. Nash 64 Senior Vice President, Operations Services 2004 John H. Faulk 50 Senior Vice President, Chief Operating Officer 2010 Tammy R. Moore 58 Vice President and Chief Accounting Officer 2010 Mr.
In 2018, he was named Senior Vice President of FORM 10-K 13 PART I Revenue and Business Development. His promotion expanded his role to include setting direction for the company’s pricing and cemetery development functions. Prior to joining the Company, Mr.
He joined SCI in March 2010 as Vice President, Business Development, to oversee the Company's strategic growth, including mergers and acquisitions, real estate, and construction. In 2018, he was named Senior Vice President of Revenue and Business Development. His promotion expanded his role to include setting direction for the company’s pricing and cemetery development functions.
Nash serves as Chair of the Board of Directors of Genesys Works Houston. Mr. Faulk was named Senior Vice President and Chief Operating Officer in 2024 and oversees SCI’s funeral and cemetery operations. He joined SCI in March 2010 as Vice President, Business Development, to oversee the Company's strategic growth, including mergers and acquisitions, real estate, and construction.
Nash serves on the Board of Directors of Genesys Works Houston and on the UpSkill Committee of Greater Houston Partnership. Mr. Faulk was named Senior Vice President and Chief Operating Officer in 2024 and oversees SCI’s funeral and cemetery operations.
These investments include a customer relationship management system, which drives improvements in productivity and sales production by leveraging data analytics, rigorous lead tracking, and effective follow-up campaigns. We continue to diversify our sales force to understand and serve the numerous religious, ethnic, and cultural traditions important to our customers.
Developing Our Sales Organization Over the last several years, we have continued to invest significantly in the development of our sales organization with best in class tools and technologies. These investments include a customer relationship management system, which drives improvements in productivity and sales production by leveraging data analytics, rigorous lead tracking, and effective follow-up campaigns.
The following strategies remain the core of our foundation: 1) grow revenue, 2) leverage our unparalleled scale, and 3) invest capital. Grow Revenue We plan to remain relevant to our customers as their preferences evolve through a combination of price, product, and service differentiation strategies to facilitate revenue growth.
The following strategies remain the core of our foundation: 1) grow revenue, 2) leverage our unparalleled scale, and 3) invest capital.
Faulk worked for Bain & Company, Inc. where he helped Fortune 500 Companies and specialty retailers identify profit growth opportunities and achieve strong operating results. He holds a master's degree in business administration from the Darden Graduate School of Business at the University of Virginia and a bachelor's degree in electrical engineering from the University of Virginia. Mrs.
Prior to joining the Company, Mr. Faulk worked for Bain & Company, Inc. where he helped Fortune 500 Companies and specialty retailers identify profit growth opportunities and achieve strong operating results.
Moore serves on the Board of Regents of Commonwealth Institute of Funeral Service.
Moore serves on the Board of Regents of Commonwealth Institute of Funeral Service and serves as a member of the University of North Carolina's Master of Accounting Advisory Council.
Our premier combination locations and other large and recognizable cemeteries and funeral homes, along with the selling tools we have available, attract high-quality sales talent. Our scale allows us to operate and expand our sales organization in an efficient manner to bolster preneed sales growth.
We continue to diversify our sales force to understand and serve the numerous religious, ethnic, and cultural traditions important to our customers. Our premier combination locations and other large and recognizable cemeteries and funeral homes, along with the contemporary selling tools we have available, attract high-quality sales talent.
Moore was named Vice President and Chief Accounting Officer in 2010 and oversees general accounting, trust and technical accounting, internal and external reporting, and customer service. She joined the Company in August 2002 as Manager of Financial Reporting and was promoted to Director of Financial Reporting in 2004 and Managing Director and Assistant Controller in June 2006.
She joined the Company in August 2002 as Manager of Financial Reporting and was promoted to Director of Financial Reporting in 2004 and Managing Director and Assistant Controller in June 2006. Prior to joining the Company, Mrs. Moore was a certified public accountant with PricewaterhouseCoopers LLP.
Subsequent to December 31, 2024, we repurchased 467,208 shares for $36.3 million at an average cost per share of $77.74. Managing Debt We continue to focus on maintaining optimal levels of liquidity and financial flexibility. Our flexible capital strategy allows us to manage our debt maturity profile by making open market debt repurchases when it is opportunistic to do so.
Subsequent to December 31, 2025, we repurchased 552,313 shares for $44.4 million at an average cost per share of $80.48. Managing Debt Foundational to our capital allocation strategy, we continue to focus on maintaining optimal levels of liquidity and financial flexibility.
In our funeral segment, we focus on merchandise and services that are meaningful to both our burial and cremation customers. The growing trend of cremation has resulted in new product and service offerings, including cremation-specific service packages, which may or may not include memorialization.
During the arrangement, we offer a contemporary and customer-friendly digital presentation of options that allows the customer to choose merchandise and services including unique celebration, catering, and celebrant services. In our funeral segment, we focus on merchandise and services that are meaningful to both our burial and cremation customers.
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As a result, we have been certified as a Great Place To Work since 2017 in the U.S. and since 2020 in Canada. Associate Benefits Eligible associates in the United States may elect coverage under our group health and life insurance plans.
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In 2025, building on our past workplace surveys, we launched our We Listen Survey, which measures engagement across areas including recognition, growth, communication, and leadership. This employee survey will help drive company-wide initiatives and improvements. Associate Benefits Eligible associates in the United States may elect coverage under our group health and life insurance plans.
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During the COVID-19 pandemic, we were able to continue to operate without any major disruptions to our business, which highlights the strength of our scale. Developing Our Sales Organization Over the last several years, we have continued to invest significantly in the development of our sales organization with best in class tools and technologies.
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Adjacent to this site on land owned by the Company, we are developing a new corporate headquarters building comprising approximately 250,000 square feet of office space. The facility is designed to support collaboration, innovation, and productivity.
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Optimizing Our Network and Deploying Customer-Facing Technology We continue driving operational discipline and leverage our scale through standardizing processes and capitalizing on new technologies to improve the customer experience. Our advancements in technology are changing the way we present our product and service offerings to customers.
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Upon completion of the new headquarters, the Company expects to monetize the existing corporate buildings, parking garage, and other land adjacent to the old headquarters buildings.
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Our atneed point of sale system, HMIS+, uses a digital platform enabled with high resolution video and photographs to create a seamless presentation of our products and service offerings. Our mobile preneed sales system, Beacon, provides customers with a full digital presentation experience in their home or other place of their choosing.
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Grow Revenue In addition to expected revenue growth as Baby Boomers begin impacting our atneed results, we plan to remain relevant to our customers as their preferences evolve through a combination of price, product, and service differentiation strategies to facilitate further growth. We also expect that continued growth in our preneed sales will drive future revenue expansion.
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Our Dignity Memorial® location websites feature a modern and user-friendly design. Our location-specific websites are designed for mobile use and optimized for better search engine ranking.
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Centralized procurement and long-standing supplier relationships allow us to capture economies of scale while maintaining high standards of quality. Advancing Customer-Facing Technology and Enhancing the User Experience Throughout the year, we invested in customer-facing technology initiatives designed to improve engagement while supporting operational efficiency and consistency at scale.
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In addition to the contemporary and sophisticated design, client families enjoy innovative features such as an interactive obituary experience, the ability to create and share personalized content in memory of their loved one, the ability to see venues, catering options, online pricing, and new self-service options like scheduling an appointment online.
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These investments focused on streamlining digital interactions, improving access to information, and enabling customers to complete transactions more efficiently. We enhanced key digital touchpoints, including websites and customer portals, to improve usability, content visibility, and payment flow.
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We have reduced the time it takes to receive customer feedback through digital surveys. Online reviews provide visibility of customer engagement at the location level and shorten our response time in addressing any customer concerns.
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In addition, we expanded technology capabilities that support both at-need and preneed sales across funeral and cemetery operations, improving consistency of tools and processes while supporting revenue-generating activities. Together, these initiatives are intended to reduce complexity, support more efficient service delivery, and strengthen the customer experience in a way that is scalable and aligned with long-term financial performance.
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We have established a social media presence for many of our funeral and cemetery businesses, including the ability to livestream services at many of our locations. These digital efforts have resulted in favorable customer satisfaction ratings and increased digital sales leads over the last several years.
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Digital Innovation and AI Governance As technology continues to evolve, the Company is thoughtfully adopting digital tools, including artificial intelligence (AI), to support its funeral, cremation, and cemetery operations, enhance service quality, and improve efficiency across both field FORM 10-K 11 PART I locations and corporate functions.
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We are encouraged by the increased digital opportunities and we are making great strides with internal projects leveraging technology and simplifying nearly every facet of service delivery. FORM 10-K 11 PART I Capital Allocation We consistently evaluate the best uses of our cash flow that will yield the highest value and return on capital.
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SCI’s approach to AI is grounded in responsible innovation, with a focus on deploying practical use cases while maintaining strong governance, risk management, and associate education to guide adoption. SCI believes AI-enabled tools will improve operational effectiveness, particularly in areas where technology can help associates focus more fully on care, compassion, and service.
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Faulk 49 Senior Vice President, Chief Operating Officer 2010 Tammy R. Moore 57 Vice President and Chief Accounting Officer 2010 Mr. Ryan was elected Chairman of the Board of SCI effective in January 2016, appointed Chief Executive Officer in February 2005, and President in 2002.
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Central to this approach is preparing our workforce to understand, use, and oversee AI responsibly and ethically, consistent with the Company’s values and commitment to Service Excellence. To support responsible use of AI by associates, SCI’s Employee Artificial Intelligence Use Policy outlines expectations for ethical, secure and appropriate use of AI-enabled tools.
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Oversight of AI use is provided through SCI’s AI Governance and Advisory Committee, which supports Company leadership by establishing governance practices and setting strategic guidance for the use of AI. The Committee helps identify and mitigate legal, ethical, data privacy, and cybersecurity risks, and facilitates the sharing of insights and learnings as AI initiatives are implemented.
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As AI technologies and regulatory expectations continue to evolve, SCI will regularly review and enhance its governance practices, policies, and workforce training efforts to support innovation while maintaining the trust of the families, communities, and associates we serve. Capital Allocation We consistently evaluate the best uses of our cash flow that will yield the highest value and return on capital.
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Our flexible capital strategy allows us to manage our debt maturity profile by making open market debt repurchases when it is opportunistic to do so. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe have a significant amount of indebtedness, which could have important consequences, including the following: • It may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures, acquisitions, debt service requirements, and general corporate or other purposes. • A portion of our cash flows from operations will be dedicated to the payment of principal and interest on our indebtedness, including indebtedness we may incur in the future, and may not be available for other purposes, including to finance our working capital, capital expenditures, acquisitions, and general corporate costs or other purposes. • It could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate and place us at a competitive disadvantage compared to our competitors that have less debt. • It could make us more vulnerable to downturns in general economic or industry conditions or in our business, or prevent us from carrying out activities that are important to our growth.
Biggest changeWe have a significant amount of indebtedness, which could have important consequences, including the following: • It may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures, acquisitions, debt service requirements, and general corporate or other purposes. • A portion of our cash flows from operations will be dedicated to the payment of principal and interest on our indebtedness, including indebtedness we may incur in the future, and may not be available for other purposes, including to finance our working capital, capital expenditures, acquisitions, and general corporate costs or other purposes. • It could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate and place us at a competitive disadvantage compared to our competitors that have less debt. • It could make us more vulnerable to downturns in general economic or industry conditions or in our business, or prevent us from carrying out activities that are important to our growth. • It could increase our interest expense if interest rates in general increase because a portion of our indebtedness, including all of our indebtedness under our Bank Credit Facilities, bears interest at floating rates. • It could make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including any financial and other restrictive covenants, could result in an event of default under the agreements governing our other indebtedness which, if not cured or waived, could result in the acceleration of our indebtedness.
The covenants limit, among other things, our and our subsidiaries’ ability to: • Incur additional indebtedness (including guarantee obligations); • Create liens on assets; • Engage in certain transactions with affiliates; • Enter into sale-leaseback transactions; • Engage in mergers, liquidations, and dissolutions; • Sell assets; • Pay dividends, distributions, and other payments in respect of our capital stock; • Purchase our capital stock in the open market; • Make investments, loans, or advances; • Repay indebtedness or amend the agreements relating thereto; FORM 10-K 15 PART I • Create restrictions on our ability to receive distributions from subsidiaries; and • Change our lines of business.
The covenants limit, among other things, our and our subsidiaries’ ability to: • Incur additional indebtedness (including guarantee obligations); • Create liens on assets; • Engage in certain transactions with affiliates; • Enter into sale-leaseback transactions; • Engage in mergers, acquisitions, liquidations, and dissolutions; • Sell assets; FORM 10-K 15 PART I • Pay dividends, distributions, and other payments in respect of our capital stock; • Purchase our capital stock in the open market; • Make investments, loans, or advances; • Repay indebtedness or amend the agreements relating thereto; • Create restrictions on our ability to receive distributions from subsidiaries; and • Change our lines of business.
We may be required to cover any such shortfall with cash flows from operations, which could have a material adverse effect on our financial condition, results of operations, and cash flows. For more information related to our trust investments, see Note 3 in Part II, Item 8. Financial Statements and Supplementary Data.
We may be required to cover any shortfall with cash flows from operations, which could have a material adverse effect on our financial condition, results of operations, and cash flows. For more information related to our trust investments, see Note 3 in Part II, Item 8. Financial Statements and Supplementary Data.
We may be adversely affected by the effects of inflation. Inflation has the potential to adversely affect our liquidity, business, financial condition and results of operations by increasing our overall cost structure or by reducing the amount of discretionary income consumers have available to spend on our services.
We may be adversely affected by the effects of inflation. Inflation has the potential to adversely affect our liquidity, business, financial condition and results of operations by increasing our overall cost structure or by reducing the amount of discretionary income consumers have available to spend on our merchandise and services.
In the event of market declines that result in a severe decrease in trust fund value, we may be required to replenish amounts in the respective trusts in some future period. As of December 31, 2024, we had unrealized losses of $2.6 million in the various trusts within these states, but no such replenishment is currently expected to be required.
In the event of market declines that result in a severe decrease in trust fund value, we may be required to replenish amounts in the respective trusts in some future period. As of December 31, 2025, we had unrealized losses of $0.6 million in the various trusts within these states, but no such replenishment is currently expected to be required.
Our Bank Credit Facilities require us to maintain a leverage ratio. This covenant may require us to take actions to reduce our indebtedness or act in a manner contrary to our strategic plan and business objectives. In addition, events beyond our control, including changes in general economic and business conditions, may affect our ability to satisfy this covenant.
Our Bank Credit Facilities require us not to exceed a maximum leverage ratio. This covenant may require us to take actions to reduce our indebtedness or act in a manner contrary to our strategic plan and business objectives. In addition, events beyond our control, including changes in general economic and business conditions, may affect our ability to satisfy this covenant.
Our cemetery segment, which has a goodwill balance of $396.0 million as of December 31, 2024, is more sensitive to market conditions and goodwill impairments because it is more reliant on preneed sales, which are impacted by customer discretionary spending. For additional information, see Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes in Part II, Item 7.
Our cemetery segment, which has a goodwill balance of $406.8 million as of December 31, 2025, is more sensitive to market conditions and goodwill impairments because it is more reliant on preneed sales, which are impacted by customer discretionary spending. For additional information, see Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes in Part II, Item 7.
Risks associated with our supply chain could materially adversely affect our financial performance. We are dependent on our supply chain to supply merchandise to our funeral home and cemetery locations.
Risks associated with our supply chain, such as tariffs, could materially adversely affect our financial performance. We are dependent on our supply chain to supply merchandise to our funeral home and cemetery locations.
The following table summarizes our investment returns (realized and unrealized), excluding certain fees, on our trust funds: Years Ended December 31, 2024 2023 2022 Preneed funeral merchandise and service trust funds 12.3 % 16.5 % (11.5) % Preneed cemetery merchandise and service trust funds 12.5 % 16.9 % (11.8) % Cemetery perpetual care trust funds 11.9 % 15.3 % (11.0) % Combined trust funds 12.3 % 16.3 % (11.5) % Generally, earnings or gains and losses on our trust investments are recognized and we withdraw cash when the underlying merchandise is delivered, service is performed, or upon contract cancellation.
The following table summarizes our investment returns (realized and unrealized), excluding certain fees, on our trust funds: Years Ended December 31, 2025 2024 2023 Preneed funeral merchandise and service trust funds 14.7 % 12.3 % 16.5 % Preneed cemetery merchandise and service trust funds 15.6 % 12.5 % 16.9 % Cemetery perpetual care trust funds 14.7 % 11.9 % 15.3 % Combined trust funds 15.1 % 12.3 % 16.3 % Generally, earnings or gains and losses on our trust investments are recognized and we withdraw cash when the underlying merchandise is delivered, service is performed, or upon contract cancellation.
In the event all of the surety companies canceled or did not renew our surety bonds, which generally have twelve-month renewal periods, we would be required to either obtain replacement coverage or fund approximately $277.4 million into state-mandated trust accounts as of December 31, 2024.
In the event all of the surety companies canceled or did not renew our surety bonds, which generally have twelve-month renewal periods, we would be required to either obtain replacement coverage or fund approximately $258.7 million into state-mandated trust accounts as of December 31, 2025.
We cannot predict how changes to trade policy may affect trade agreements or tariffs, nor can we predict the effects that any such changes would have on our supply chain. Regulatory and Legal Risks Regulation and compliance could have a material adverse impact on our financial results.
We cannot predict how changes to trade policy may affect trade agreements or tariffs, nor can we predict the effects that any such changes would have on our supply chain. FORM 10-K 19 PART I Regulatory and Legal Risks Regulation and compliance could have a material adverse impact on our financial results.
These unanticipated changes could have a material adverse effect on our financial condition, results of operations, and cash flows. 16 Service Corporation International PART I Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
These unanticipated changes could have a material adverse effect on our financial condition, results of operations, and cash flows. Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
Any such adverse outcomes, in pending cases or other lawsuits that may arise in the future, could have a material adverse impact on our financial position, results of operations, and cash flows. FORM 10-K 19 PART I Cemetery burial practice claims could have a material adverse impact on our financial results.
Any such adverse outcomes, in pending cases or other lawsuits that may arise in the future, could have a material adverse impact on our financial position, results of operations, and cash flows. Cemetery burial practice claims could have a material adverse impact on our financial results.
Changes in federal, state, or local tax laws, adverse tax audit results, or adverse tax rulings on positions taken could have a material adverse effect on the results of our operations, financial condition, or cash flows. Item 1B. Unresolved Staff Comments None.
Changes in federal, state, or local tax laws, adverse tax audit results, or adverse tax rulings on positions taken could have a material adverse effect on the results of our operations, financial condition, or cash flows. 20 Service Corporation International PART I Item 1B. Unresolved Staff Comments None.
As of December 31, 2024, no such charge was required in any reported period. 14 Service Corporation International PART I We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
As of December 31, 2025, no such charge was required in any reported period. We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
Additionally, there is a continuing upward trend in the number of cremations performed in North America as an alternative to traditional funeral service dispositions. In our operations during 2024, 63.8% of the comparable services we performed were cremation cases compared to 63.1% and 61.3% performed in 2023 and 2022, respectively.
Additionally, there is a continuing upward trend in the number of cremations performed in North America as an alternative to traditional funeral service dispositions. In our operations during 2025, 64.4% of the comparable services we performed were cremation cases compared to 63.9% and 63.1% performed in 2024 and 2023, respectively.
If the investments in our trust funds experience significant declines in 2025 or subsequent years or in a high inflation environment, there could be insufficient funds in the trusts to cover the costs of delivering merchandise and services or maintaining our cemeteries in the future.
If the investments in our trust funds experience significant declines in 2026 or subsequent years or in a high inflation environment, there could be insufficient funds in the trusts to cover the costs of delivering merchandise and services or 14 Service Corporation International PART I maintaining our cemeteries in the future.
A breach of our security measures or failure in our backup systems could adversely affect our reputation with our customers and their loved ones, our associates, and our vendors; as well as our operations, results of operations, financial condition, and cash flows; and could result in litigation or penalties. Our Canadian business exposes us to operational, economic, and currency risks.
A breach of our security measures or failure in our backup systems could adversely affect our reputation with our customers and their loved ones, our associates, and our vendors; as well as our operations, results of operations, financial condition, and cash flows; and could result in litigation or penalties.
These obligations could further increase the risks described above. A failure of a key information technology system or process could disrupt and adversely affect our business. We rely extensively on information technology systems, some of which are managed or provided by third-party service providers, to analyze, process, store, manage, and protect transactions and data.
FORM 10-K 17 PART I A failure of a key information technology system or process could disrupt and adversely affect our business. We rely extensively on information technology systems, some of which are managed or provided by third-party service providers, to analyze, process, store, manage, and protect transactions and data.
If we are unable to continue to expand our cremation memorialization products and services, and cremations increase as a significant percentage of our services, our financial condition, results of operations, and cash flows could be materially adversely affected. 18 Service Corporation International PART I Our funeral and cemetery businesses are high fixed-cost businesses.
Our average revenue for cremations is lower than that for traditional burials. If we are unable to continue to expand our cremation memorialization products and services, and cremations increase as a significant percentage of our services, our financial condition, results of operations, and cash flows could be materially adversely affected. Our funeral and cemetery businesses are high fixed-cost businesses.
Our Canadian operations represent approximately 5% of our revenue. Our ability to successfully conduct operations in Canada is affected by many of the same risks we face in our U.S. operations, as well as unique costs and difficulties of managing Canadian operations.
Our ability to successfully conduct operations in Canada is affected by many of the same risks we face in our U.S. operations, as well as unique costs and difficulties of managing Canadian operations. Our Canadian operations may be adversely affected by local laws, customs, and regulations, as well as political and economic conditions.
As a result, we or our service providers could experience errors, interruptions, delays, or cessations of service in key portions of our information technology infrastructure, which could significantly disrupt our operations and be costly, time consuming, and resource-intensive to remedy. Risks Related to Our Industry The funeral and cemetery industry is competitive.
As a result, we or our service providers could experience errors, interruptions, delays, or cessations of service in key portions of our information technology infrastructure, which could significantly disrupt our operations and be costly, time consuming, and resource-intensive to remedy. We may use artificial intelligence (“AI”) technologies in limited aspects of our operations and information technology systems.
If we are unable to successfully compete, our financial condition, results of operations, and cash flows could be materially adversely affected. If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
Our Canadian operations may be adversely affected by local laws, customs, and regulations, as well as political and economic conditions. Significant fluctuations in exchange rates between the U.S. dollar and the Canadian dollar may adversely affect our results of operations and cash flows.
Significant fluctuations in exchange rates between the U.S. dollar and the Canadian dollar may adversely affect our results of operations and cash flows.
The recent existence of higher inflation in the economy has resulted in, and may continue to result in, higher interest rates and capital costs, supply shortages, increased costs of labor, components, manufacturing and shipping, as well as weakening exchange rates and other similar effects.
Higher inflation in the economy may result in higher interest rates and capital costs, supply shortages, increased costs of labor, components, manufacturing and shipping, as well as weakening exchange rates and other similar effects. As a result of inflation, we may experience modest cost increases from certain vendors and suppliers on merchandise and goods.
Furthermore, the stringent licensing standards required for funeral professionals under various state regulations create a significant barrier to entry and make it especially challenging to find enough qualified talent. If we are unable to maintain a qualified and productive sales force and team of licensed funeral professionals, our revenues may decline and our cash available for distribution may decrease.
Furthermore, the stringent licensing standards required for funeral professionals under various state regulations create a significant barrier to entry and make it especially challenging to find qualified talent.
We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance. Our insurance coverage is subject to deductibles, self-insured retentions, limits of liability, and similar provisions that we believe are prudent based on our operations.
Our insurance coverage is subject to deductibles, self-insured retentions, limits of liability, and similar provisions that we believe are prudent based on our operations.
In North America, the funeral and cemetery industry is characterized by a large number of locally-owned, independent operations. To compete successfully, our funeral service locations and cemeteries must maintain good reputations and high professional standards, as well as offer attractive products and services at competitive prices.
To compete successfully, our funeral service locations and cemeteries must maintain good reputations and high professional standards, as well as offer attractive products and services at competitive prices. In addition, we must market ourselves in such a manner as to distinguish us from our competitors.
In addition, we must market ourselves in such a manner as to distinguish us from our competitors. We have historically experienced price competition from independent funeral service location and cemetery operators, monument dealers, casket retailers, low-cost funeral providers, and other nontraditional providers of merchandise and services.
We have historically experienced price competition from independent funeral service location and cemetery operators, monument dealers, casket retailers, low-cost funeral providers, and other nontraditional providers of merchandise and services. If we are unable to successfully compete, our financial condition, results of operations, and cash flows could be materially adversely affected.
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As a result of inflation, we have experienced modest cost increases from certain vendors and suppliers on merchandise and goods and may continue to experience additional cost increases in the future, which could be of greater magnitude than those experienced to date.
Added
If we are unable to maintain a qualified and productive sales force and team of licensed funeral professionals, our revenues may decline and our cash available for distribution may decrease. 16 Service Corporation International PART I We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
Removed
FORM 10-K 17 PART I • It could increase our interest expense if interest rates in general increase because a portion of our indebtedness, including all of our indebtedness under our Bank Credit Facilities, bears interest at floating rates. • It could make it more difficult for us to satisfy our obligations with respect to our indebtedness, and any failure to comply with the obligations of any of our debt instruments, including any financial and other restrictive covenants, could result in an event of default under the agreements governing our other indebtedness which, if not cured or waived, could result in the acceleration of our indebtedness.
Added
AI technologies are evolving and may give rise to operational, legal, regulatory, data security, and privacy risks. Such technologies may produce inaccurate, misleading, or biased outputs or be improperly used by employees, which could adversely affect our business, reputation, financial condition, or results of operations.
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Our average revenue for cremations is lower than that for traditional burials.
Added
In addition, increased governmental or regulatory scrutiny or legal claims related to AI could result in additional costs or liabilities, even where our use of AI is limited in our information technology systems and processes. Our Canadian business exposes us to operational, economic, and currency risks. Our Canadian operations represent approximately 5% of our revenue.
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These obligations could further increase the risks described above. 18 Service Corporation International PART I Risks Related to Our Industry The funeral and cemetery industry is competitive. In North America, the funeral and cemetery industry is characterized by a large number of locally-owned, independent operations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeEngage External Experts on Risk Management To effectively target emerging cybersecurity threats, our information security program engages with a diverse group of third-party external experts, including cybersecurity assessors, consultants, and auditors for cybersecurity risk management. Our partnerships with these third party professionals feature regular audits, assessments, and simulated testing.
Biggest changeThis forward-thinking strategy ensures that cybersecurity risk management awareness informs each stage of the business decision-making process. Engage External Experts on Risk Management To effectively target emerging cybersecurity threats, our information security program engages with a diverse group of third-party external experts, including cybersecurity assessors, consultants, and auditors for cybersecurity risk management.
Management’s Role in Managing Cybersecurity Risk The Assistant Vice President, Information Technology Security, who also functions as the company's data protection officer, reports to the Vice President of Information Technology and is responsible for briefing the Audit Committee on information security risks. The AVP, IT Security provides comprehensive briefings to the Audit Committee on a quarterly basis.
Management’s Role in Managing Cybersecurity Risk The Assistant Vice President, Information Technology Security (AVP, IT Security), who also functions as the company's data protection officer, reports to the Vice President of Information Technology and is responsible for briefing the Audit Committee on information security risks. The AVP, IT Security provides comprehensive briefings to the Audit Committee on a quarterly basis.
These briefings highlight various cybersecurity topics, including new cybersecurity threats, incidents, risks, risk management solutions, strategy pivots, or proposed governance changes. Risk Management Expertise With over 23 years of experience working on information technology and cybersecurity teams, the AVP, IT Security is the lead architect of the company’s security infrastructure.
These briefings highlight various cybersecurity topics, including new cybersecurity threats, incidents, risks, risk management solutions, strategy pivots, or proposed governance changes. Risk Management Expertise With over 24 years of experience working on information technology and cybersecurity teams, the AVP, IT Security is the lead architect of the company’s security infrastructure.
The AVP, IT Security presents quarterly briefings to the Cyber Security and Data Governance Executive Steering Committee on all issues related to cybersecurity risks and incidents. The Cyber Security and Data Governance Executive Steering Committee includes members from the senior leadership team, such as the Chief Operating Officer, the Senior Vice President of Operations Services and the General Counsel.
The AVP, IT Security presents quarterly briefings to the Cyber Security and Data Governance Executive Steering Committee on all issues related to cybersecurity risks and incidents. The Cyber Security and Data Governance Executive Steering Committee includes members from the senior leadership team, such as the Chief Financial Officer, the Senior Vice President of Operations Services and the General Counsel.
Third-party risks are documented as part of a risk management process that follows an industry standard framework with a goal of remediation or mitigation. 20 Service Corporation International PART I Cybersecurity Threat Risks We have not experienced a cybersecurity incident or data breach that has had a material impact on our operations or financial standing.
Third-party risks are documented as part of a risk management process that follows an industry standard framework with a goal of remediation or mitigation. Cybersecurity Threat Risks We have not experienced a cybersecurity incident or data breach that has had a material impact on our operations or financial standing.
In his role, the AVP, IT Security has built and developed effective and lasting information security solutions, establishing a robust framework of technical, administrative and physical controls while providing stakeholders such as executive management, operations leadership and legal counsel clear and constant visibility into rapidly evolving business threats.
In his role, the AVP, IT Security has built and developed effective and FORM 10-K 21 PART I lasting information security solutions, establishing a robust framework of technical, administrative and physical controls while providing stakeholders such as executive management, operations leadership and legal counsel clear and constant visibility into rapidly evolving business threats.
Oversee Third-Party Risk Risk assessments are conducted when we onboard new services and new vendors, including third-party vendors, applications, and other technology services, when there are significant changes to IT or security architecture, and when systems handle sensitive data.
Our partnerships with these third party professionals feature regular audits, assessments, and simulated testing. Oversee Third-Party Risk Risk assessments are conducted when we onboard new services and new vendors, including third-party vendors, applications, and other technology services, when there are significant changes to IT or security architecture, and when systems handle sensitive data.
Our information security program is designed to evaluate, identify, and manage risks from cybersecurity threats and vulnerabilities, including malware, phishing, hacking, social engineering, data breaches, and emerging risks associated with artificial intelligence. Our program is regularly assessed using the NIST Cybersecurity Framework, and mandatory information security training is provided to our employees.
Our information security program is designed to evaluate, identify, and manage risks from cybersecurity threats and vulnerabilities, including malware, phishing, hacking, social engineering, data breaches, and emerging risks associated with artificial intelligence. Assessment of risks may include tabletop exercises, control gap analyses, threat modeling, internal or external audits, vulnerability scans, and penetration tests.
Removed
Our information security team is empowered to assess and address cybersecurity risks in close collaboration with the operational teams. This forward-thinking strategy ensures that cybersecurity risk management awareness informs each stage of the business decision-making process.
Added
Our program is regularly assessed using the NIST Cybersecurity Framework, and our policies are reviewed periodically to align with current regulatory requirements and the evolving threat landscape. Our employees are required to take mandatory information security training. Our information security team is empowered to assess and address cybersecurity risks in close collaboration with the operational teams.
Added
Item 3. Legal Proceedings Information regarding legal proceedings is set forth in Note 9 of Part II, Item 8. Financial Statements and Supplementary Data. Item 4. Mine Safety Disclosures Not applicable. 22 Service Corporation International

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change(2) Includes 316 shares purchased in November 2024 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. Item 6. [Reserved]
Biggest change(2) Includes 158 shares purchased in November 2025 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. (3) Includes 519 shares purchased in December 2025 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans.
The following graph assumes the total return on $100 invested on December 31, 2019, in SCI Common Stock, the S&P 500 Index, the S&P MidCap 400 Index, and a peer group selected by the Company (the “Peer Group”). The Peer Group comprises Carriage Services, Inc. and Matthews International Corp. Total return data assumes reinvestment of dividends.
The following graph assumes the total return on $100 invested on December 31, 2020, in SCI Common Stock, the S&P 500 Index, the S&P MidCap 400 Index, and a peer group selected by the Company (the “Peer Group”). The Peer Group comprises Carriage Services, Inc. and Matthews International Corp. Total return data assumes reinvestment of dividends.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Our common stock has been traded on the New York Stock Exchange since May 14, 1974. On December 31, 2024, there were 2,939 holders of record of our common stock.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Our common stock has been traded on the New York Stock Exchange since May 14, 1974. On December 31, 2025, there were 2,807 holders of record of our common stock.
In calculating the number of stockholders, we consider clearing agencies and security position listings as one stockholder for each agency or listing. At December 31, 2024, we had 144,694,887 shares outstanding, net of 1,973,702 treasury shares. Our common stock is traded on the New York Stock Exchange under the symbol SCI.
In calculating the number of stockholders, we consider clearing agencies and security position listings as one stockholder for each agency or listing. At December 31, 2025, we had 139,678,199 shares outstanding, net of 2,278,805 treasury shares. Our common stock is traded on the New York Stock Exchange under the symbol SCI.
FORM 10-K 23 PART II The following table summarizes our share repurchases during the three months ended December 31, 2024: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Program October 1, 2024 — October 31, 2024 (1) 351,558 $ 75.72 337,273 $ 305,436,818 November 1, 2024 — November 30, 2024 (2) 54,657 $ 85.71 54,341 300,779,114 December 1, 2024 — December 31, 2024 244,171 $ 82.76 244,171 280,570,967 650,386 635,785 (1) Includes 14,285 shares purchased in October 2024 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans.
FORM 10-K 23 PART II The following table summarizes our share repurchases during the three months ended December 31, 2025: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Approximate Dollar Value of Shares That May Yet be Purchased Under the Program (4) October 1, 2025 — October 31, 2025 (1) 69,704 $ 82.24 55,859 $ 409,832,213 November 1, 2025 — November 30, 2025 (2) 98,113 $ 79.43 97,955 402,051,423 December 1, 2025 — December 31, 2025 (3) 582,546 $ 77.92 582,027 356,699,395 750,363 735,841 (1) Includes 13,845 shares purchased in October 2025 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans.
Added
(4) In May 2025, we announced an increase in our share repurchase authorization to $600.0 million. The share repurchase authorization does not obligate us to acquire a minimum amount of shares. Under the share repurchase authorization, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

75 edited+19 added−10 removed82 unchanged
Biggest changeThe $151.5 million increased outflow from 2024 over 2023 is primarily due to the following: • a $108.7 million increase in cash spent on business acquisitions, • a $27.3 million increase in total capital expenditures, which comprises: • a $23.4 million increase in maintenance capital expenditures, consisting of: • a $20.2 million increase in expenditures for capital improvements at existing field locations, • a $11.8 million increase in expenditures for cemetery property development, • a $8.6 million decrease in expenditures for digital investments and corporate, • a $3.9 million increase for growth capital expenditures/construction of new funeral service locations • a $7.3 million increase in other investing activities primarily for investments in renewable energy tax credits, • a $5.7 million increase in cash spent on real estate acquisitions, • a $1.4 million decrease in cash receipts from divestitures and asset sales, and • a $1.1 million decrease in proceeds for Company-owned life insurance policies, net of repayments.
Biggest changeThe $72.6 million decreased outflow from 2025 over 2024 is primarily due to the following: • a $79.9 million decrease in cash spent on business acquisitions, • a $43.6 million decrease in cash spent on real estate acquisitions, • a $10.3 million increase in net proceeds for Company-owned life insurance policies, • a $6.0 million increase in cash receipts from divestitures and asset sales, and • a $2.2 million decrease in other investing activities primarily for investments in renewable energy tax credits, partially offset by • a $54.5 million increase in capital expenditures related to construction of our new corporate headquarters which is financed through a separate construction loan facility, • a $14.9 million increase in total capital expenditures, which includes: • an $18.8 million increase for growth capital expenditures/construction of new funeral service locations, partially offset by • a $3.9 million decrease in maintenance capital expenditures, consisting of: • an $8.6 million decrease in expenditures for digital investments and corporate, partially offset by • a $3.1 million increase in expenditures for cemetery property development, and • a $1.6 million increase in expenditures for capital improvements at existing field locations.
Assumptions based on factors such as claim settlement patterns, claim development trends, claim frequency and severity patterns, inflationary trends, and data reasonableness will generally affect the analysis and determination of the “best estimate” of the projected ultimate claim losses. The results of these evaluations are used to both analyze and adjust our insurance loss reserves.
Assumptions based on factors such as claim settlement patterns, claim development trends, claim frequency, severity patterns, inflationary trends, and data reasonableness will generally affect the analysis and determination of the “best estimate” of the projected ultimate claim losses. The results of these evaluations are used to both analyze and adjust our insurance loss reserves.
Trust-Funded Preneed Contracts The funds collected from customers and required by state or provincial law are deposited into trusts. We retain any funds above the amounts required to be deposited into trust accounts and use them for working capital purposes, generally to offset the selling and administrative costs of our preneed programs.
Trust-Funded Preneed Contracts The funds collected from customers are deposited into trusts as required by state or provincial law. We retain any funds above the amounts required to be deposited into trust accounts and use them for working capital purposes, generally to offset the selling and administrative costs of our preneed programs.
We recognize revenue and record the cost of sales when control is transferred for the merchandise, which occurs upon delivery to the third-party storage facility or installation of the merchandise at the cemetery.
We recognize revenue and record the cost of sales when control of the merchandise is transferred, which occurs upon delivery to the third-party storage facility or installation of the merchandise at the cemetery.
As of December 31, 2024, approximately 95% of our trusts were under the control and custody of five large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), one for each merchandise and service trust type and two for the cemetery perpetual care trust type, each with an independent trustee as custodian.
As of December 31, 2025, approximately 95% of our trusts were under the control and custody of five large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), one for each merchandise and service trust type and two for the cemetery perpetual care trust type, each with an independent trustee as custodian.
Insurance-Funded Preneed Contracts Where permitted by state or provincial law, we may sell a life insurance or annuity policy from third-party insurance companies, for which we earn a commission as general sales agent for the insurance company.
Insurance- and Other Funded Preneed Contracts Where permitted by state or provincial law, we may sell a life insurance or annuity policy from third-party insurance companies, for which we earn a commission as a general sales agent for the insurance company.
This is especially true with respect to liability and workers’ compensation exposures due to the extended period of time that transpires between the time claim occurs and the full settlement of such claim, which is often many years. We continually evaluate loss estimates associated with claims and losses related to these insurance coverages falling within the deductible of each coverage.
This is especially true with respect to liability and workers’ compensation exposures due to the extended period of time that transpires between the time claim occurs and the full settlement of such claim, which may be many years. We continually evaluate loss estimates associated with claims and losses related to these insurance coverages falling within the deductible of each coverage.
Our unencumbered cash on hand, future operating cash flows, and the available capacity under our Bank Credit Facilities will give us adequate liquidity to meet our short-term needs as well as our long-term financial obligations. Due to cash balances residing in Canada and minimum operating cash requirements, a portion of our cash on hand is encumbered.
Our unencumbered cash on hand, future operating cash flows, and the available capacity under our Bank Credit Facilities gives us adequate liquidity to meet our short-term needs as well as our long-term financial obligations. Due to cash balances residing in Canada and minimum operating cash requirements, a portion of our cash on hand is encumbered.
We manage our footprint by focusing on strategic acquisitions and building new funeral service locations where the expected returns are attractive and exceed our weighted average cost of capital by a meaningful margin. We target businesses with favorable customer dynamics and/or where we can achieve the benefits of economies of scale.
We manage our footprint by focusing on strategic acquisitions and building new funeral service locations where the expected returns are attractive and exceed our weighted average cost of capital. We target businesses with favorable customer dynamics and/or where we can achieve the benefits of economies of scale.
We strive to offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves approximately 700,000 families each year with professionalism, compassion, and attention to detail. Our financial position is enhanced by our $16.0 billion backlog of future revenue from both trust and insurance-funded preneed sales at December 31, 2024.
We strive to offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves approximately 700,000 families each year with professionalism, compassion, and attention to detail. Our financial position is enhanced by our $17.0 billion backlog of future revenue from both trust and insurance-funded preneed sales at December 31, 2025.
We target a leverage ratio of 3.5x to 4.0x. Our financial covenant requirements and actual ratio as of December 31, 2024 are as follows: Per Credit Agreement Actual Leverage ratio 5.00 (Max) 3.65 We have the financial strength and flexibility to reward shareholders with dividends while maintaining a prudent capital structure and pursuing new opportunities for profitable growth.
We target a leverage ratio of 3.5x to 4.0x. Our financial covenant requirements and actual ratio as of December 31, 2025 are as follows: Per Credit Agreement Actual Leverage ratio 5.00 (Max) 3.67 We have the financial strength and flexibility to reward shareholders with dividends while maintaining a prudent capital structure and pursuing new opportunities for profitable growth.
As of December 31, 2024, the difference between the backlog and total assets at fair value represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.38 billion collected from customers that were not required to be deposited into trusts, and $0.20 billion in allowable cash distributions from trust assets partially offset by $1.57 billion in amounts due on delivered property and merchandise.
As of December 31, 2025, the difference between the backlog and total assets at fair value represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.39 billion collected from customers that were not required to be deposited into trusts, and $0.20 billion in allowable cash distributions from trust assets partially offset by $1.56 billion in amounts due on delivered property and merchandise.
In certain situations, as described above, where permitted by state or provincial laws, we may post a surety bond as financial assurance for a certain amount of the preneed contract in lieu of placing funds into trust accounts. Alternatively, we may sell a life insurance or annuity policy from third-party insurance companies.
In certain situations, as described above, where permitted by state or provincial laws, we may post a surety bond as financial assurance for a certain amount of the preneed contract in lieu of placing funds into trust accounts. Alternatively, we may sell a life insurance or annuity policy from third-party insurance companies or use other non-insurance funded third-party providers.
The majority of the equity allocation is managed by institutional investment managers that specialize in an objective-specific area of expertise. Our equity securities are exposed to market risk; however, we believe these securities are well-diversified. As of December 31, 2024, the largest single equity position represented less than 1% of the total securities portfolio.
The majority of the equity allocation is managed by institutional investment managers that specialize in an objective-specific area of expertise. Our equity securities are exposed to market risk; however, we believe these securities are well-diversified. As of December 31, 2025, the largest single equity position represented approximately 1% of the total securities portfolio.
An increase in the valuation allowance would result in additional income tax expense in such period. As of December 31, 2024, foreign withholding taxes have not been provided on the estimated $254.8 million of undistributed earnings and profits ("E&P") of our foreign subsidiaries as we intend to permanently reinvest these foreign E&P in the respective businesses outside the United States.
An increase in the valuation allowance would result in additional income tax expense in such period. As of December 31, 2025, foreign withholding taxes have not been provided on the estimated $306.5 million of undistributed earnings and profits ("E&P") of our foreign subsidiaries as we intend to permanently reinvest these foreign E&P in the respective businesses outside the United States.
As of December 31, 2024, we had $83.9 million in current maturities of long-term debt, which primarily consist of the current amounts due on our term loan, mortgage notes and other debt, and finance leases. Our Bank Credit Facility requires us to maintain a certain leverage ratio with which we were in compliance at December 31, 2024.
As of December 31, 2025, we had $56.8 million in current maturities of long-term debt, which primarily consist of the current amounts due on our term loan, mortgage notes and other debt, and finance leases. Our Bank Credit Facility requires us to maintain a certain leverage ratio with which we were in compliance at December 31, 2025.
These trustees, with input from SCI's wholly-owned registered investment advisor, establish an investment policy that serves as an operating document to guide the investment activities of the trusts including asset allocation and manager selection. The investments are also governed by state and provincial guidelines.
These trustees, with input from SCI's FORM 10-K 31 PART II wholly-owned registered investment advisor, establish an investment policy that serves as an operating document to guide the investment activities of the trusts including asset allocation and manager selection. The investments are also governed by state and provincial guidelines.
Gain and Loss on Divestitures and Impairment Charges, Net We recognized a $12.5 million net pre-tax loss and a $9.8 million net pre-tax gain on asset divestitures and impairments in 2024 and 2023, respectively, which includes the net impact from the sale of non-essential real estate and businesses as well as impairment of long-lived assets and intangibles.
Gain and Loss on Divestitures and Impairment Charges, Net We recognized a $6.2 million net pre-tax gain and a $12.5 million net pre-tax loss on asset divestitures and impairments in 2025 and 2024, respectively, which includes the net impact from the sale of non-essential real estate and businesses as well as impairment of long-lived assets and intangibles.
In addition to any strategic acquisition or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.30 per common share at the end of 2024.
In addition to any strategic acquisitions or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.34 per common share at the end of 2025.
The table does not include the backlog associated with businesses that are held for sale. The table also reflects our preneed receivables and trust investments associated with the backlog of deferred preneed contract revenue including the amounts due from customers for undelivered performance obligations on cancelable preneed contracts.
The table does not include the backlog associated with businesses that are held for sale. 30 Service Corporation International PART II The table also reflects our preneed receivables and trust investments associated with the backlog of deferred preneed contract revenue including the amounts due from customers for undelivered performance obligations on cancelable preneed contracts.
Results of Operations — Years Ended December 31, 2024 and 2023 Management Summary In 2024, we reported consolidated net income attributable to common stockholders of $518.6 million ($3.53 per diluted share) compared to net income attributable to common stockholders in 2023 of $537.3 million ($3.53 per diluted share).
Results of Operations — Years Ended December 31, 2025 and 2024 Management Summary In 2025, we reported consolidated net income attributable to common stockholders of $542.6 million ($3.80 per diluted share) compared to net income attributable to common stockholders in 2024 of $518.6 million ($3.53 per diluted share).
Valuation of Goodwill We record the excess of purchase price over the fair value of identifiable net assets acquired in business combinations as goodwill. Goodwill is tested annually during the fourth quarter for impairment by assessing the fair value of each of our reporting units. Our goodwill impairment test involves certain estimates and management judgment.
Valuation of Goodwill We record the excess of purchase price over the fair value of identifiable net assets acquired in business combinations as goodwill. Goodwill is tested annually during the fourth quarter for impairment by assessing the fair value of each of our reporting units. 36 Service Corporation International PART II Our goodwill impairment test involves estimates and management judgment.
As of December 31, 2024, insurance loss reserves were $105.8 million. Recent Accounting Pronouncements and Accounting Changes For discussion of recent accounting pronouncements and accounting changes, see Note 2 in Part II, Item 8. Financial Statements and Supplementary Data.
As of December 31, 2025, insurance loss reserves were $108.4 million. Recent Accounting Pronouncements and Accounting Changes For discussion of recent accounting pronouncements and accounting changes, see Note 2 in Part II, Item 8. Financial Statements and Supplementary Data.
FORM 10-K 29 PART II Independent trustees manage and invest the majority of the funds deposited into the funeral and cemetery merchandise and service trusts as well as the cemetery perpetual care trusts. The majority of the trustees are selected based on their respective geographic footprint and qualifications per state and provincial regulations.
Independent trustees manage and invest the majority of the funds deposited into the funeral and cemetery merchandise and service trusts as well as the cemetery perpetual care trusts. The majority of the trustees are selected based on their respective geographic footprint and qualifications per state and provincial regulations.
This compares to the SCI trusts that increased 12.3% during the same year-end period, which exceeded our internal custom benchmarks. The SCI trusts have a diversified allocation of approximately 59% equities, 27% fixed income securities, 10% alternative and other investments with the remaining 4% in money market funds.
This compares to the SCI trusts that increased 15.1% during the same year-end period, which exceeded our internal custom benchmarks. The SCI trusts have a diversified allocation of approximately 60% equities, 26% fixed income securities, 10% alternative and other investments with the remaining 4% in money market funds.
As of December 31, 2024, we had fixed lease payment obligations of $69.0 million, of which $10.1 million is due in the next twelve months. See Note 8 in Part II, Item 8. Financial Statements and Supplementary Data for additional details related to our leases.
As of December 31, 2025, we had fixed lease payment obligations of $65.6 million, of which $10.4 million is due in the next twelve months. See Note 8 in Part II, Item 8. Financial Statements and Supplementary Data for additional details related to our leases.
However, if we were to repatriate such foreign E&P, the foreign withholding tax liability is estimated to be $13.2 million.
However, if we were to repatriate such foreign E&P, the foreign withholding tax liability is estimated to be $15.8 million.
Debt & Finance Leases As of December 31, 2024, we had $4.8 billion in aggregate principal outstanding on our notes, term loan, revolving credit facility, finance leases, mortgage notes, and other debt (collectively "debt and finance leases"), of which $83.9 million is payable in the next twelve months.
Debt & Finance Leases As of December 31, 2025, we had $5.1 billion in aggregate principal outstanding on our notes, term loan, revolving credit facility, finance leases, mortgage notes, and other debt (collectively "debt and finance leases"), of which $56.8 million is payable in the next twelve months.
The trustees that have oversight of their respective alternative LLCs work closely with the investment advisor in making all investment decisions. 30 Service Corporation International PART II Trust Performance During the year ended December 31, 2024, the Standard and Poor’s 500 Index increased 25.0% and the Bloomberg’s US Aggregate Bond Index increased 1.3%.
The trustees that have oversight of their respective alternative LLCs work closely with the investment advisor in making all investment decisions. 32 Service Corporation International PART II Trust Performance During the year ended December 31, 2025, the Standard and Poor’s 500 Index increased 17.9% and the Bloomberg’s US Aggregate Bond Index increased 7.3%.
We continue to pursue strategic acquisitions and build new funeral service locations in areas that provide us with the potential for additional scale. In 2024, w e invested $181.2 million in acquiring 26 funeral service locations and 6 cemeteries, which included 3 combination locations. Return Excess Cash to Shareholders.
We continue to pursue strategic acquisitions and build new funeral service locations in areas that provide us with the potential for additional scale. In 2025, we invested $101.3 million in acquiring 22 funeral service locations and 2 cemeteries, which included 2 combination locations. Return Excess Cash to Shareholders.
At December 31, 2024, we operated 1,493 funeral service locations and 496 cemeteries (including 308 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico.
At December 31, 2025, we operated 1,485 funeral service locations and 500 cemeteries (including 312 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico.
For a discussion of our results of operations and liquidity and capital resources for the fiscal year ended December 31, 2023, see Management’s Discussion and Analysis of Financial Condition, Liquidity and Capital Resources and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year December 31, 2023, filed with the Securities and Exchange Commission on February 13, 2024. 24 Service Corporation International PART II Financial Condition, Liquidity, and Capital Resources Capital Allocation Considerations We rely on cash flow from operations as a significant source of liquidity.
For a discussion of our results of operations and liquidity and capital resources for the fiscal year ended December 31, 2024, see 24 Service Corporation International PART II Management’s Discussion and Analysis of Financial Condition, Liquidity and Capital Resources and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year December 31, 2024, filed with the Securities and Exchange Commission on February 13, 2025.
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $185.7 million and $158.2 million for the years ended December 31, 2024 and 2023, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $96.4 million and $86.6 million for the years ended December 31, 2024 and 2023, respectively.
Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $202.2 million and $185.7 million for the years ended December 31, 2025 and 2024, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $111.1 million and $96.4 million for the years ended December 31, 2025 and 2024, respectively.
Additionally, the table reflects our backlog of unfulfilled insurance-funded contracts (which are not included in our Consolidated Balance Sheet) at December 31, 2024 and 2023. The 28 Service Corporation International PART II backlog amounts presented include amounts due from customers for undelivered performance obligations on cancelable preneed contracts to arrive at our total backlog of deferred revenue.
Additionally, the table reflects our backlog of unfulfilled insurance-funded contracts and other non-insurance funded third-party contracts (which are not included in our Consolidated Balance Sheet) at December 31, 2025 and 2024. The backlog amounts presented include amounts due from customers for undelivered performance obligations on cancelable preneed contracts to arrive at our total backlog of deferred revenue.
December 31, 2024 December 31, 2023 Fair Value Cost Fair Value Cost (In billions) Deferred revenue, net $ 1.76 $ 1.76 $ 1.70 $ 1.70 Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts 0.99 0.99 0.95 0.95 Deferred receipts held in trust 5.16 4.50 4.67 4.18 Allowance for cancellation on trust investments (0.27) (0.24) (0.26) (0.24) Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation 7.64 7.01 7.06 6.59 Backlog of insurance-funded revenue (1) 8.37 8.37 7.78 7.78 Total backlog of deferred revenue $ 16.01 $ 15.38 $ 14.84 $ 14.37 Preneed receivables, net and trust investments $ 6.74 $ 6.08 $ 6.19 $ 5.70 Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts 0.99 0.99 0.95 0.95 Allowance for cancellation on trust investments (0.27) (0.24) (0.26) (0.24) Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation 7.46 6.83 6.88 6.41 Insurance policies associated with insurance-funded deferred revenue (1) 8.37 8.37 7.78 7.78 Total assets associated with backlog of preneed revenue $ 15.83 $ 15.20 $ 14.66 $ 14.19 (1) Amounts are not included in our Consolidated Balance Sheet.
December 31, 2025 December 31, 2024 Fair Value Cost Fair Value Cost (In billions) Deferred revenue, net $ 1.78 $ 1.78 $ 1.76 $ 1.76 Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts 1.01 1.01 0.99 0.99 Deferred receipts held in trust 5.78 4.83 5.16 4.50 Allowance for cancellation on trust investments (0.29) (0.24) (0.27) (0.24) Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation 8.28 7.38 7.64 7.01 Backlog of insurance- and other funded deferred revenue (1) 8.73 8.73 8.37 8.37 Total backlog of deferred revenue $ 17.01 $ 16.11 $ 16.01 $ 15.38 Preneed receivables, net and trust investments $ 7.36 $ 6.41 $ 6.74 $ 6.08 Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts 1.01 1.01 0.99 0.99 Allowance for cancellation on trust investments (0.29) (0.24) (0.27) (0.24) Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation 8.08 7.18 7.46 6.83 Policies associated with insurance- and other funded deferred revenue (1) 8.73 8.73 8.37 8.37 Total assets associated with backlog of preneed revenue $ 16.81 $ 15.91 $ 15.83 $ 15.20 (1) Amounts are not included in our Consolidated Balance Sheet.
As of December 31, 2024, the backlog of insurance-funded contracts of $8.37 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
As of December 31, 2025, the backlog of insurance-funded contracts of $8.73 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced by one of our operating locations.
The aggregate principal excludes $44.0 million in unamortized non-cash debt issuance costs and original issuance discounts and premiums. Future interest payments associated with the debt and finance leases 26 Service Corporation International PART II total $1.2 billion, of which $239.2 million is payable in the next twelve months.
The aggregate principal excludes $38.1 million in unamortized non-cash debt issuance costs and original issuance discounts and premiums. Future interest payments associated with the debt and finance leases FORM 10-K 27 PART II total $1.2 billion, of which $249.1 million is payable in the next twelve months.
Years Ended December 31, 2024 2023 (In millions) Preneed funeral $ 226.8 $ 67.8 Preneed cemetery: Merchandise and services 135.6 141.3 Pre-construction 56.4 54.6 Bonds supporting preneed funeral and cemetery obligations 418.8 263.7 Bonds supporting preneed business permits 8.1 7.6 Other bonds 27.5 25.4 Total surety bonds outstanding $ 454.4 $ 296.7 When selling preneed contracts, we may post surety bonds where allowed by state law.
Years Ended December 31, 2025 2024 (In millions) Preneed funeral $ 209.2 $ 226.8 Preneed cemetery: Merchandise and services 134.9 135.6 Pre-construction 64.5 56.4 Bonds supporting preneed funeral and cemetery obligations 408.6 418.8 Bonds supporting preneed business permits 8.7 8.1 Other bonds 76.5 27.5 Total surety bonds outstanding $ 493.8 $ 454.4 When selling preneed contracts, we may post surety bonds where allowed by state law.
We do not reflect the FORM 10-K 27 PART II unfulfilled insurance-funded preneed contract amounts in our Consolidated Balance Sheet. The proceeds of the life insurance policies or annuity contracts will be reflected in funeral revenue as we perform these funerals. The table below details our results of insurance-funded preneed production and maturities.
We do not reflect the 28 Service Corporation International PART II unfulfilled insurance- and other funded preneed contract amounts in our Consolidated Balance Sheet. The proceeds of the life insurance policies or annuity contracts will be reflected in funeral revenue as we perform these funerals.
Cemetery Revenue Consolidated revenue from our cemetery operations increased $65.5 million, or 3.6%, in 2024 compared to 2023 primarily due to a $53.2 million, or 3.0%, increase in comparable cemetery revenue and a $14.3 million increase in revenue contributed by newly constructed and acquired properties.
Cemetery Revenue Consolidated revenue from our cemetery operations increased $41.5 million, or 2.2%, in 2025 compared to 2024 primarily due to a $29.7 million, or 1.6%, increase in comparable cemetery revenue and a $11.6 million increase in revenue contributed by acquired and newly constructed properties.
The $53.2 million increase in comparable cemetery revenue was primarily attributable to a $42.0 million increase in comparable cemetery core revenue. This increase was primarily a result of a $45.1 million increase in recognized preneed revenue, which benefited from growth in comparable preneed sales production and trust fund income.
The $29.7 million increase in comparable cemetery revenue was primarily attributable to a $14.6 million increase in comparable cemetery core revenue. This increase was primarily a result of a $12.7 million increase in recognized preneed revenue, which benefited from growth in comparable preneed sales production and higher trust fund income.
Valuation of Trust Investments When available, we use quoted market prices for specific securities.
FORM 10-K 37 PART II Valuation of Trust Investments When available, we use quoted market prices for specific securities.
These results were impacted by certain significant items including: Years Ended December 31, 2024 2023 (In millions) Pre-tax (loss) gain on divestitures and impairment charges, net $ (12.5) $ 9.8 Pre-tax loss on early extinguishment of debt, net $ — $ (1.1) Pre-tax estimate of reduction in legal reserve (1) $ 20.3 $ — Pre-tax estimate of restructuring charge $ (11.5) $ — Tax effect from significant items $ 0.4 $ (2.3) Change in uncertain tax reserves and other (2) $ 4.0 $ 1.6 (1) The fourth quarter of 2024 includes a reduction of our legal reserve of $20.3 million related to previously disclosed legal matters in California that have now been resolved.
These results were impacted by certain significant items including: Years Ended December 31, 2025 2024 (In millions) Pre-tax gain (loss) on divestitures and impairment charges, net $ 6.2 $ (12.5) Pre-tax loss on early extinguishment of debt, net $ (0.5) $ — Pre-tax estimate of (growth) reduction in legal reserve (1) $ (6.4) $ 20.3 Pre-tax estimate of restructuring charge $ (2.0) $ (11.5) Tax effect from significant items $ 0.4 $ 0.4 Change in uncertain tax reserves and other (2) $ (3.9) $ 4.0 (1) Corporate general and administrative expenses in the fourth quarter of 2024, includes a reduction of our California legal reserve of $20.3 million as the primary claims period expired (2) See Note 5 in Part II, Item 8.
See Note 2 in Part II, Item 8. Financial Statements and Supplementary Data, for more information. Estimates and assumptions affect the carrying values of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date. Actual results could differ from such estimates due to uncertainties associated with the methods and assumptions underlying our critical accounting measurements.
Estimates and assumptions affect the carrying values of assets and liabilities and disclosures of contingent assets and liabilities at the balance sheet date. Actual results could differ from such estimates due to uncertainties associated with the methods and assumptions underlying our critical accounting measurements.
Investing Activities Cash flows from investing activities used $620.9 million and $469.4 million, in 2024, and 2023, respectively.
Investing Activities Cash flows from investing activities used $548.3 million and $620.9 million, in 2025, and 2024, respectively.
As of December 31, 2024, the fair value of the total backlog comprised $4.56 billion related to cemetery contracts and $11.45 billion related to funeral contracts. As of December 31, 2024, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $4.61 billion related to cemetery contracts and $2.85 billion related to funeral contracts.
As of December 31, 2025, the fair value of the total backlog comprised $5.04 billion related to cemetery contracts and $11.97 billion related to funeral contracts. As of December 31, 2025, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $5.10 billion related to cemetery contracts and $2.98 billion related to funeral contracts.
Cemetery Gross Profit Consolidated cemetery gross profit increased $30.7 million, or 5.2%, in 2024 compared to 2023 and is primarily attributable to an increase in comparable cemetery gross profit of $22.5 million, and an increase in gross profit contributed by newly constructed and acquired properties of $9.5 million.
Funeral Gross Profit Consolidated funeral gross profit increased $30.5 million, or 6.6%, in 2025 compared to 2024. This increase is primarily attributable to a $22.6 million, or 4.8%, increase in comparable funeral gross profit and a $7.6 million increase in gross profit contributed by acquired and newly constructed properties.
FORM 10-K 31 PART II Funeral Results Years Ended December 31, 2024 2023 (Dollars in millions, except average revenue per service) Consolidated funeral revenue $ 2,324.2 $ 2,303.0 Less: revenue associated with acquisitions/new construction 34.5 8.7 Less: revenue associated with divestitures 2.1 5.6 Comparable (1) funeral revenue 2,287.6 2,288.7 Less: non-funeral home preneed sales revenue 103.5 134.7 Less: core general agency and other revenue 211.3 180.2 Adjusted comparable funeral revenue $ 1,972.8 $ 1,973.8 Comparable services performed 347,894 356,782 Comparable average revenue per service (2) $ 5,671 $ 5,532 Consolidated funeral gross profit 465.3 497.1 Less: gross profit associated with acquisitions/new construction 1.5 0.5 Less: gross loss associated with divestitures (0.3) (0.1) Comparable (1) funeral gross profit $ 464.1 $ 496.7 (1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2023 and ending December 31, 2024.
FORM 10-K 33 PART II Funeral Results Years Ended December 31, 2025 2024 (Dollars in millions, except average revenue per service) Consolidated funeral revenue $ 2,405.5 $ 2,324.2 Less: revenue associated with acquisitions/new construction 62.7 17.3 Less: revenue associated with divestitures 2.8 7.1 Comparable (1) funeral revenue 2,340.0 2,299.8 Less: non-funeral home preneed sales revenue 92.2 103.8 Less: core general agency and other revenue 223.2 212.1 Adjusted comparable funeral revenue $ 2,024.6 $ 1,983.9 Comparable services performed 347,696 350,607 Comparable average revenue per service (2) $ 5,823 $ 5,658 Consolidated funeral gross profit 495.8 465.3 Less: gross profit associated with acquisitions/new construction 9.3 1.7 Less: gross loss associated with divestitures (2.3) (2.6) Comparable (1) funeral gross profit $ 488.8 $ 466.2 (1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2024 and ending December 31, 2025.
Years Ended December 31, 2024 2023 (Dollars in millions) Funeral: Preneed trust-funded (including bonded): Sales production $ 480.0 $ 541.5 Sales production (number of contracts) 113,686 132,268 Maturities $ 378.0 $ 372.7 Maturities (number of contracts) 84,373 84,572 Cemetery: Sales production: Preneed $ 1,356.3 $ 1,333.9 Atneed 425.9 421.9 Total sales production $ 1,782.2 $ 1,755.8 Sales production deferred to backlog: Preneed $ 636.7 $ 651.6 Atneed 301.1 297.2 Total sales production deferred to backlog $ 937.8 $ 948.8 Revenue recognized from backlog: Preneed $ 485.8 $ 503.0 Atneed 304.5 307.3 Total revenue recognized from backlog $ 790.3 $ 810.3 Backlog of Preneed Contracts The following table reflects our backlog of trust-funded deferred preneed contract revenue, including amounts related to Deferred receipts held in trust at December 31, 2024 and 2023.
FORM 10-K 29 PART II Years Ended December 31, 2025 2024 (Dollars in millions) Funeral: Preneed trust-funded (including bonded): Sales production $ 339.7 $ 480.0 Sales production (number of contracts) 57,295 113,686 Maturities $ 403.6 $ 378.0 Maturities (number of contracts) 84,699 84,373 Cemetery: Sales production: Preneed $ 1,421.0 $ 1,356.3 Atneed 429.9 425.9 Total sales production $ 1,850.9 $ 1,782.2 Sales production deferred to backlog: Preneed $ 713.9 $ 636.7 Atneed 299.7 301.1 Total sales production deferred to backlog $ 1,013.6 $ 937.8 Revenue recognized from backlog: Preneed $ 496.4 $ 485.8 Atneed 303.0 304.5 Total revenue recognized from backlog $ 799.4 $ 790.3 Backlog of Preneed Contracts The following table reflects our backlog of trust-funded deferred preneed contract revenue, including amounts related to Deferred receipts held in trust at December 31, 2025 and 2024.
The income approach, which is a discounted cash flow method, uses projections of 34 Service Corporation International PART II future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows.
We determine fair value of each reporting unit using an income approach. The income approach, which is a discounted cash flow method, uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows.
In 2024, we repurchased 3,439,551 shares of our common stock at an aggregate cost of $249.8 million, which is an average cost per share of $72.63. In 2023, we repurchased 8,700,767 shares of our common stock at an aggregate cost of $549.6 million, which is an average cost per share of $63.17.
In 2025, we repurchased 5,864,563 shares of our common stock at an aggregate cost of $464.2 million, which is an average cost per share of $79.15. In 2024, we repurchased 3,439,551 shares of our common stock at an aggregate cost of $249.8 million, which is an average cost per share of $72.63.
Funeral Revenue Consolidated revenue from funeral operations was $2,324.2 million for the year ended December 31, 2024, compared to $2,303.0 million in 2023. This $21.2 million, or 0.9%, increase in revenue is primarily attributable to a $25.8 million increase in revenue contributed by newly constructed and acquired properties, partially offset by a $1.1 million decrease in comparable funeral revenue.
Funeral Revenue Consolidated revenue from funeral operations was $2,405.5 million for the year ended December 31, 2025, compared to $2,324.2 million in 2024. This $81.3 million, or 3.5%, increase in revenue is primarily attributable to a $45.4 million increase in revenue contributed by newly constructed and acquired properties, and a $40.2 million increase in comparable funeral revenue.
Financing Activities Financing activities used $319.6 million in 2024 compared to $381.1 million in 2023.
Financing Activities Financing activities used $374.7 million in 2025 compared to $319.6 million in 2024.
The $61.5 million decreased outflow from 2024 over 2023 is primarily due to the following: • a $291.1 million decrease in the purchase of Company common stock, and • a $32.5 million increase in proceeds from exercises of stock options, partially offset by • a $253.3 million increase in debt repayments, net of proceeds, • a $6.3 million increase in payments of dividends, and • a $2.5 million change in bank overdrafts and other.
The $55.1 million increased outflow from 2025 over 2024 is primarily due to the following: • a $207.3 million increase in purchase of Company common stock, • a $27.3 million decrease in proceeds from exercises of stock options, and • a $9.3 million increase in payments of dividends, partially offset by • a $132.4 million increase in debt proceeds, net of repayments, • a $54.8 million increase in borrowings from our corporate headquarters debt facility, and • a $1.6 million decrease in bank overdrafts and other.
The federal statutes of limitations have expired for all tax years prior to 2021, and we are not currently under audit by the IRS. Various state and foreign jurisdictions are auditing years 2020 through 2022.
The federal statutes of limitations have expired for all tax years prior to 2022. Our 2022 federal income tax return is currently under audit by the IRS. Various state and foreign jurisdictions are auditing years 2020 through 2023. The outcome of each of these audits cannot be predicted at this time.
Other Financial Statement Items Corporate General and Administrative Expenses Corporate general and administrative expenses were $139.0 million in 2024 compared to $157.4 million in 2023. During the fourth quarter, we recognized a $20.3 million reduction in our California legal reserve as the primary claim period expired.
Other Financial Statement Items Corporate General and Administrative Expenses Corporate general and administrative expenses were $166.2 million in 2025 compared to $139.0 million in 2024. In the prior year, we recognized a $20.3 million reduction in our California legal reserve. Additionally, we recognized a $6.4 million settlement of certain legal matters in the current year.
FORM 10-K 25 PART II The $75.9 million increase in operating cash flow during 2024 comprises: • a $66.4 million increase in General Agency (GA) commission and other receipts, • a $62.9 million decrease in cash tax payments, and • a $54.6 million increase in cash receipts from customers, partially offset by • a $35.4 million increase in net trust deposits, • a $30.0 million increase in employee compensation payments, • a $16.2 million increase in payments for certain legal matters, • a $13.0 million increase in vendor and other payments, • a $11.1 million increase in cash interest payments, and • a $2.3 million increase in restructuring payments.
Operating Activities Net cash provided by operating activities was $942.8 million and $944.9 million for the years ended December 31, 2025, and 2024, respectively. 26 Service Corporation International PART II The $2.1 million decrease in operating cash flow during 2025 comprises: • a $119.2 million increase in cash tax payments, • a $20.2 million increase in employee compensation payments, • a $19.3 million increase in restructuring payments, • a $12.2 million increase in net trust deposits, • a $11.2 million increase in cash interest payments, and • a $3.9 million increase in vendor and other payments, partially offset by • a $116.9 million increase in cash receipts from customers, • a $38.6 million increase in General Agency (GA) commission and other receipts, and • a $28.4 million decrease in payments for certain legal matters.
On certain preneed contracts, we sell memorialization merchandise, which consists of urns and urn-related products, that we deliver to the customer at the time of sale. Revenue is recognized at the time of delivery when control of the memorialization merchandise is transferred.
On certain preneed contracts, we historically sold memorialization merchandise, which consists of urns and urn-related products, that we delivered to the customer at the time of sale. In 2024, we began a transition and operational shift to defer the delivery of urns on preneed contracts to the time of need.
This cash flow stream and our significant liquidity allow us to opportunistically manage our debt maturity profile as we maintain a target leverage ratio of 3.5x to 4.0x. Cash Flow Our ability to generate strong operating cash flow is one of our fundamental financial strengths and provides us with substantial flexibility in meeting operating and investing needs.
Cash Flow Our ability to generate strong operating cash flow is one of our fundamental financial strengths and provides us with substantial flexibility in meeting operating and investing needs.
This decrease in gross profit is due to the decline in revenue mentioned above combined with higher employee-related inflationary costs, higher overhead costs including incentive compensation costs, and higher facility costs on increased maintenance expenses from damages incurred at locations impacted by natural disasters during the year. 32 Service Corporation International PART II Cemetery Results Years Ended December 31, 2024 2023 (In millions) Consolidated cemetery revenue $ 1,862.2 $ 1,796.7 Less: revenue associated with acquisitions/new construction 14.5 0.2 Less: revenue associated with divestitures (0.2) 1.8 Comparable (1) cemetery revenue $ 1,847.9 $ 1,794.7 Consolidated cemetery gross profit $ 625.4 $ 594.7 Less: gross profit (loss) associated with acquisitions/new construction 7.5 (2.0) Less: gross (loss) profit associated with divestitures (0.3) 1.0 Comparable (1) cemetery gross profit $ 618.2 $ 595.7 (1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2023 and ending December 31, 2024.
Fixed selling compensation is expensed as incurred. 34 Service Corporation International PART II Cemetery Results Years Ended December 31, 2025 2024 (In millions) Consolidated cemetery revenue $ 1,903.7 $ 1,862.2 Less: revenue associated with acquisitions/new construction 13.7 2.1 Less: revenue associated with divestitures 0.1 (0.1) Comparable (1) cemetery revenue $ 1,889.9 $ 1,860.2 Consolidated cemetery gross profit $ 644.3 $ 625.4 Less: gross profit (loss) associated with acquisitions/new construction 6.1 0.6 Less: gross (loss) profit associated with divestitures 0.1 (0.2) Comparable (1) cemetery gross profit $ 638.1 $ 625.0 (1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2024 and ending December 31, 2025.
The tables below detail our results of preneed production and maturities, excluding insurance contracts, for the years ended December 31, 2024 and 2023.
As discussed above in Insurance- and Other Funded Preneed Contracts, we have shifted our non-funeral home preneed sales production from trust to insurance-funded contracts. The tables below detail our results of preneed production and maturities, excluding insurance contracts, for the years ended December 31, 2025 and 2024.
Core general agency and other revenue grew $31.1 million, primarily due to growth in general agency revenue from higher commission rates, primarily as a result of our new preneed insurance marketing agreement. Funeral Gross Profit Consolidated funeral gross profit decreased $31.8 million, or 6.4%, in 2024 compared to 2023.
Core general agency and other revenue increased $11.1 million, primarily due to growth in general agency revenue from higher commission rates as a result of the change in our preferred preneed insurance provider in mid-2024.
Additionally, comparable other revenue increased $11.3 million, primarily from higher endowment care trust fund income.
Additionally, comparable other revenue increased $15.0 million, primarily from higher endowment care trust fund income. Cemetery Gross Profit Consolidated cemetery gross profit increased $18.9 million, or 3.0%, in 2025 compared to 2024.
Income Taxes We compute income taxes using the liability method. Our ability to realize the benefit of our deferred tax assets requires us to achieve certain future earnings levels.
Financial Statements and Supplementary Data, our legal exposures and the ultimate outcome of these legal proceedings could be material to operating results or cash flows in any given quarter or year. Income Taxes We compute income taxes using the liability method. Our ability to realize the benefit of our deferred tax assets requires us to achieve certain future earnings levels.
Subsequent to December 31, 2024, we repurchased 467,208 shares for $36.3 million at an average cost per share of $77.74. Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles.
Subsequent to December 31, 2025, we repurchased 552,313 shares for $44.4 million at an average cost per share of $80.48. Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility.
The valuation of certain investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity, and the long-term nature of such assets.
The valuation of certain investments requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity, and the long-term nature of such assets. Legal Liability Reserves Contingent liabilities, principally for legal matters, are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
(2) See Note 5 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information related to change in uncertain tax reserves and other. In addition to the above items, the decrease over the prior year is due to lower gross profit from lower services performed combined with higher expenses, including facility and maintenance expenses from natural disasters.
Financial Statements and Supplementary Data, for additional information related to change in uncertain tax reserves and other. In addition to the above items, the increase over the prior year is due to higher funeral gross profit driven by an increase in funeral average revenue per service and higher cemetery gross profit.
Our cash flow from operating activities provided $944.9 million in 2024. In addition, as of December 31, 2024, we have $1,341.0 million in borrowing capacity under our revolving credit facility.
FORM 10-K 25 PART II Financial Condition, Liquidity, and Capital Resources Capital Allocation Considerations We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $942.8 million in 2025. In addition, as of December 31, 2025, we have $1,448.0 million in borrowing capacity under our revolving credit facility.
Additionally, fewer shares outstanding and a lower tax rate helped to offset the impact of higher interest.
Additionally, the higher tax rate was partially offset by lower interest expense and a lower share count.
Comparable revenue from funeral operations was $2,287.6 million for the year ended December 31, 2024 compared to $2,288.7 million in 2023. Our comparable funeral services performed decreased 2.5%, which was primarily offset by a 2.5% growth in the comparable average revenue per service.
Comparable revenue from funeral operations was $2,340.0 million for the year ended December 31, 2025 compared to $2,299.8 million in 2024.
We perform our goodwill impairment test by comparing the fair value of a reporting unit to its carrying amount, including goodwill. We determine fair value of each reporting unit using an income approach.
If we determine that it is more likely than not that the fair value of the reporting unit is less that its carrying value, a quantitative test is the performed. For those reporting units tested using a quantitative approach, we compare the fair value of a reporting unit to its carrying amount, including goodwill.
FORM 10-K 33 PART II Provision for Income Taxes The 2024 consolidated effective tax rate was 23.2%, compared to 24.1% in 2023. The decrease in the effective tax rate in 2024 was primarily due to an increase in excess tax benefits recognized on the settlement of employee share-based awards .
The increase in the effective tax rate in 2025 was primarily due to a de crease in excess tax benefits recognized on the settlement of employee share-based awards . The effective tax rate for the year ended December 31, 2025 was higher than the federal statutory tax rate of 21% primarily due to state and foreign income taxes.
Years Ended December 31, 2024 2023 (Dollars in millions) Preneed insurance-funded: Sales production (1) $ 725.0 $ 704.8 Sales production (number of contracts) (1) 120,434 113,095 General agency revenue $ 232.5 $ 185.6 Maturities $ 408.0 $ 394.5 Maturities (number of contracts) 65,202 63,839 (1) Amounts are not included in our Consolidated Balance Sheet.
Years Ended December 31, 2025 2024 (Dollars in millions) Preneed insurance-funded: Sales production (1) $ 816.9 $ 681.4 Sales production (number of contracts) (1) 160,342 115,853 General agency revenue $ 292.1 $ 230.9 Maturities $ 404.9 $ 380.1 Maturities (number of contracts) 65,452 62,138 Other non-insurance funded third-party: Sales production (1) $ 41.5 $ 43.6 Sales production (number of contracts) (1) 4,249 4,581 Maturities $ 30.7 $ 27.9 Maturities (number of contracts) 3,079 3,064 (1) Amounts are not included in our Consolidated Balance Sheet.
The effective tax rate for the year ended December 31, 2024 was higher than the federal statutory tax rate of 21% primarily due to state and foreign income taxes. Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes Our consolidated financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation.
FORM 10-K 35 PART II Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes Our consolidated financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. See Note 2 in Part II, Item 8. Financial Statements and Supplementary Data, for more information.
FORM 10-K 35 PART II Legal Liability Reserves Contingent liabilities, principally for legal matters, are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Liabilities accrued for legal matters require judgments regarding projected outcomes and a range of loss based on historical experience and recommendations of legal counsel.
Liabilities accrued for legal matters require judgments regarding projected outcomes and a range of loss based on historical experience and recommendations of legal counsel. However, litigation is inherently unpredictable and excessive verdicts do occur. As disclosed in Note 9 in Part II, Item 8.
Removed
Operating Activities Net cash provided by operating activities was $944.9 million and $869.0 million for the years ended December 31, 2024, and 2023, respectively.
Added
While economic conditions, inflation, and consumer confidence may affect the timing or mix of customer purchases, demand is generally deferred rather than lost. Accordingly, demand for these products and services has historically been less sensitive to economic cycles than other discretionary consumer purchases.
Removed
As of December 31, 2024, we had an increase of $161.7 million in surety bonds supporting preneed funeral obligations related to certain legal matters discussed in Note 9 in Part II, Item 8. Financial Statements and Supplementary Data.
Added
Our recent $325.0 million increase in availability under our bank credit facility bolsters our flexible capital strategy and allows us to further manage our debt maturity profile by making open market debt repurchases when it is opportunistic to do so. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles.
Removed
Our total comparable cremation rate increased 70 basis points to 63.8% for the year ended December 31, 2024. Non-funeral home preneed sales revenue decreased by $31.1 million primarily due to a decline of non-funeral home preneed sales production impacted by our transition from trust to insurance-funded contracts.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeMarketable Equity and Debt Securities — Price Risk In connection with our preneed funeral operations and preneed cemetery merchandise and service sales, the related funeral and cemetery trust funds own investments in equity and debt securities and mutual funds, which are sensitive to current market prices. 36 Service Corporation International PART II Cost and market values as of December 31, 2024 are presented in Note 3 in Part II, Item 8, Financial Statements and Supplementary Data.
Biggest changeActual fair value movements related to changes in equity markets, interest rates, and currencies, along with the timing of such movements, may differ from those estimated. 38 Service Corporation International PART II Marketable Equity and Debt Securities — Price Risk In connection with our preneed funeral operations and preneed cemetery merchandise and service sales, the related funeral and cemetery trust funds own investments in equity and debt securities and mutual funds, which are sensitive to current market prices.
Market-Rate Sensitive Instruments — Currency Risk At December 31, 2024 and 2023, our foreign currency exposure was primarily associated with the Canadian dollar. At December 31, 2024, approximately 6% of our stockholders’ equity and debt and 6% of our operating income was denominated in the Canadian dollar.
Market-Rate Sensitive Instruments — Currency Risk At December 31, 2025 and 2024, our foreign currency exposure was primarily associated with the Canadian dollar. At December 31, 2025, approximately 7% of our stockholders’ equity and debt and 6% of our operating income was denominated in the Canadian dollar.
Approximately 6% of our stockholders’ equity and debt and 6% of our operating income was denominated in the Canadian dollar at December 31, 2023. We do not have any investments in foreign operations considered to be in highly inflationary economies. FORM 10-K 37 PART II
Approximately 6% of our stockholders’ equity and debt and 6% of our operating income was denominated in the Canadian dollar at December 31, 2024. We do not have any investments in foreign operations considered to be in highly inflationary economies. FORM 10-K 39 PART II
A hypothetical increase in interest rates by 10% of the rates associated with our floating rate debt would increase our interest expense by $4.9 million. See Notes 6 and 7 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information.
A hypothetical increase in interest rates by 10% of the rates associated with our floating rate debt would increase our interest expense by $5.9 million. See N otes 6 and 7 in Part II, Item 8. Financial Statements and Supplementary Data, for additional information.
Market-Rate Sensitive Instruments — Interest Rate Risk At December 31, 2024 and 2023, approximately 84% and 69%, respectively, of our total debt consisted of fixed rate debt at a weighted average rate of 4.64% and 4.35%, respectively.
Market-Rate Sensitive Instruments — Interest Rate Risk At December 31, 2025 and 2024, approximately 79% and 84%, respectively, of our total debt consisted of fixed rate debt at a weighted average rate of 4.67% and 4.64%, respectively.
Our views on market risk are not necessarily indicative of actual results that may occur, and they do not represent the maximum possible gains or losses that may occur. Actual fair value movements related to changes in equity markets, interest rates, and currencies, along with the timing of such movements, may differ from those estimated.
Our views on market risk are not necessarily indicative of actual results that may occur, and they do not represent the maximum possible gains or losses that may occur.
Also see " Trust Investments " in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Financial Conditions, Liquidity, and Capital Resources, for discussion of trust investments.
Cost and market values as of December 31, 2025 are presented in Note 3 in Part II, Item 8, Financial Statements and Supplementary Data. Also see " Trust Investments " in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, Financial Conditions, Liquidity, and Capital Resources, for discussion of trust investments.

Other SCI 10-K year-over-year comparisons