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Service Corporation Revenue Mix: What's Powering the Top Line?
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Key Takeaways
SCI's cemetery revenue rose to $484M, driven by higher recognized preneed sales.
SCI's funeral revenue edged up, but comparable revenue fell as core services declined, offset by pricing.
SCI posted double-digit non-funeral revenue growth, while preneed sales dipped.
Service Corporation International (SCI - Free Report) reported third-quarter 2025 revenue of $1.06 billion, up 4.4% from the prior-year quarter. The increase reflects how the company’s revenue mix is evolving across its cemetery and funeral operations, with certain categories contributing more meaningfully to the top line than others.
Cemetery operations were a significant contributor during the third quarter. Cemetery revenue rose to $484.0 million from $448.0 million a year ago. The increase was largely driven by higher recognized preneed cemetery revenue, which totaled $338.5 million compared with $307.0 million in the prior-year period. This included growth in both recognized preneed property revenue and recognized preneed merchandise and service revenue.
On a comparable basis, cemetery revenue increased 6.9%, while comparable core cemetery revenue grew 6.7%. Cemetery preneed sales production increased about 10%, supporting higher revenue recognition as contracts matured.
Funeral operations showed more mixed trends. Total funeral revenue increased to $574.1 million from $566.0 million in the third quarter of 2024. However, comparable funeral revenue declined 0.3%. Core funeral services performed fell 3.5% on a comparable basis, which weighed on at-need revenue. This decline was partially offset by higher average revenue per service. Comparable total average revenue per service increased 3.1%, reflecting higher pricing and mix across both at-need and matured preneed services.
Non-funeral home sales channels also influenced the revenue mix. Comparable non-funeral home revenue increased 12.6%, driven by a 13.4% rise in average revenue per service, despite a slight decrease in services performed. At the same time, comparable non-funeral home preneed sales revenue declined, primarily due to the company’s operational decision to defer delivery of certain merchandise until the time of need. Management stated that this affected the timing of revenue recognition rather than underlying contract values.
The Bottom Line
Overall, the quarter’s revenue growth highlights how Service Corporation’s top line is being shaped by changes in mix. Higher recognized preneed cemetery revenue, rising average revenue per service and growth in non-funeral home revenue helped support the Zacks Rank #3 (Hold) company’s consolidated revenue growth, even as funeral service volumes declined on a comparable basis.
Shares of SCI have gained 3.9% in the past year, outperforming the industry’s growth of 2.3%.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
United Natural Foods, Inc. (UNFI - Free Report) engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products. It currently carries a Zacks Rank #1. United Natural Foods delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets, and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It carries a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings implies growth of 1.6% and 2.4%, respectively, from the year-ago figures.
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Service Corporation Revenue Mix: What's Powering the Top Line?
Key Takeaways
Service Corporation International (SCI - Free Report) reported third-quarter 2025 revenue of $1.06 billion, up 4.4% from the prior-year quarter. The increase reflects how the company’s revenue mix is evolving across its cemetery and funeral operations, with certain categories contributing more meaningfully to the top line than others.
Cemetery operations were a significant contributor during the third quarter. Cemetery revenue rose to $484.0 million from $448.0 million a year ago. The increase was largely driven by higher recognized preneed cemetery revenue, which totaled $338.5 million compared with $307.0 million in the prior-year period. This included growth in both recognized preneed property revenue and recognized preneed merchandise and service revenue.
On a comparable basis, cemetery revenue increased 6.9%, while comparable core cemetery revenue grew 6.7%. Cemetery preneed sales production increased about 10%, supporting higher revenue recognition as contracts matured.
Funeral operations showed more mixed trends. Total funeral revenue increased to $574.1 million from $566.0 million in the third quarter of 2024. However, comparable funeral revenue declined 0.3%. Core funeral services performed fell 3.5% on a comparable basis, which weighed on at-need revenue. This decline was partially offset by higher average revenue per service. Comparable total average revenue per service increased 3.1%, reflecting higher pricing and mix across both at-need and matured preneed services.
Non-funeral home sales channels also influenced the revenue mix. Comparable non-funeral home revenue increased 12.6%, driven by a 13.4% rise in average revenue per service, despite a slight decrease in services performed. At the same time, comparable non-funeral home preneed sales revenue declined, primarily due to the company’s operational decision to defer delivery of certain merchandise until the time of need. Management stated that this affected the timing of revenue recognition rather than underlying contract values.
The Bottom Line
Overall, the quarter’s revenue growth highlights how Service Corporation’s top line is being shaped by changes in mix. Higher recognized preneed cemetery revenue, rising average revenue per service and growth in non-funeral home revenue helped support the Zacks Rank #3 (Hold) company’s consolidated revenue growth, even as funeral service volumes declined on a comparable basis.
Shares of SCI have gained 3.9% in the past year, outperforming the industry’s growth of 2.3%.
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3 Solid Consumer Staple Stocks
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, it sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
United Natural Foods, Inc. (UNFI - Free Report) engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products. It currently carries a Zacks Rank #1. United Natural Foods delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets, and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It carries a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings implies growth of 1.6% and 2.4%, respectively, from the year-ago figures.