On this page of StockholderLetter.com we present the latest annual shareholder letter from SERVICE CORP INTERNATIONAL — ticker symbol SCI. Reading current and past SCI letters to shareholders can bring important insights into the investment thesis.

 •  3/26/2026 Letter Continued (Full PDF)
 •  3/23/2023 SCI Stockholder Letter
 •  3/27/2024 SCI Stockholder Letter
 •  3/26/2025 SCI Stockholder Letter
 •  More "Consumer Services" Category Stockholder Letters
 •  SCI Benford's Law Stock Score = 85

SCI Shareholder/Stockholder Letter Transcript:

2025: Delivering
Shareholder Value
OPERATIONAL HIGHLIGHTS
INVESTED CAPITAL AND LIQUIDITY
Revenue (in millions)
Growth Investments (in millions)
$2,406
Funeral
$1,904
Cemetery
$79
Growth Capital (1)
Gross Profit %
Value Returned to Shareholders (in millions)
20.6%
Funeral
Preneed Sales Production (in millions)
Total Liquidity (in millions)
$1,448
Credit Facility
$1,421
Cemetery
$461
Share Repurchases
$1,198
Funeral
$184
Dividends
33.8%
Cemetery
(1)
$101
Business Acquisitions
Cash on Hand
$244
Growth capital includes growth capital expenditures/construction of new facilities and real estate acquisitions
TOTAL SHAREHOLDER RETURN (TSR) COMPARED TO S&P MidCap 400  (2)
18%
3 Year
43%
10-Year Total
Shareholder Return
72%
+255%
5 Year
55%
2015-2025
255%
10 Year
177%
SCI
(2)
S&P MidCap 400  
As of December 31, 2025 and includes the reinvestment of dividends | Source: S&P Capital IQ
PERFORMANCE MEASURES
Earnings Per Share (EPS)
Operating Cash Flow (OPCF) (in millions)
GAAP EPS
$3.80
GAAP OPCF
$943
Adjusted EPS
$3.85
Adjusted OPCF
$966
GAAP - Generally Accepted Accounting Principles in the United States
Adjusted Earnings Per Share and Adjusted Operating Cash Flow are non-GAAP financial measures. Please see Annex A in this Proxy Statement
for disclosures and reconciliations to the appropriate GAAP measure.
2026 Proxy Statement
1

Letter to Shareholders from
CEO and Lead Director
Dear Shareholders,
Looking ahead to the 2026 Annual Meeting, we are proud to build on the strong momentum in 2025 and further strengthen our performance.
During the year, we concentrated on Board succession planning, advancing priority initiatives, and carrying out our strategic framework to
enhance growth, realize operational efficiencies, and deploy capital with discipline. These efforts supported a year of healthy financial performance
and underscored our continued focus on delivering enduring value for our shareholders.
Financial Performance
In 2025, we advanced our strategic objectives and produced solid financial results amid an evolving macroeconomic backdrop. Adjusted earnings
per share totaled $3.85, representing a 12% compound annual growth rate since 2019, which we achieved despite elevated interest and tax rates
and inflationary pressures.
The preneed insurance marketing agreement entered into in July 2024 has delivered significant benefits, including improved general agency
commission rates, enhanced service support, and expanded product features, while contributing meaningfully to our financial performance.
Our blended trust and insurance preneed model is supported by approximately $17 billion of preneed backlog, supporting growth and providing
stable future revenue streams. Within this framework, we are increasingly emphasizing insurance-funded preneed funeral offerings, reflecting a
strategic focus on streamlined administration and regulatory efficiency.
Adjusted operating cash flow of $966 million in 2025 enabled us to deploy capital in support of growth and shareholder returns. We invested in
strategic acquisitions, growth and development initiatives across our portfolio, while returning $645 million to shareholders through dividends and
share repurchases. Our acquisition spend included $101 million for 22 funeral service locations and two cemeteries, and we invested
approximately $79 million toward real estate, new construction, and existing facility expansions. Additionally, we invested approximately
$328 million in cemetery development, property maintenance supporting best-in-class facilities across our portfolio, digital strategy investments,
and other corporate investments. In 2025, we also executed a new credit facility agreement that meaningfully improved liquidity, reduced pricing,
extended our average debt maturities, and provided increased flexibility in our terms and covenants. Our disciplined approach to capital allocation
has driven a 255% total shareholder return over the past decade, significantly outperforming our peer group and the S&P MidCap 400  .
Board Succession Planning
The Board of Directors remains focused on governance and succession planning. We are pleased to nominate Carl Loredo for election at the 2026
Annual Meeting. Earlier this year, we welcomed Thad Hill, adding new perspective and experience that further strengthens the Board   s overall
capabilities. In addition, Alan R. Buckwalter has announced that he will not stand for reelection as a director in 2026. Mr. Buckwalter has served
SCI with distinction for 22 years, providing steady leadership and meaningful insight throughout his tenure. We are grateful for his many
contributions to the Company and its shareholders. Collectively, these changes reflect the Board   s continued commitment to thoughtful succession
planning and effective governance in support of SCI   s long-term strategy.
Client Family Experience
As North America   s leading funeral and cemetery services company, we leverage the scale of our network to enhance operational effectiveness,
manage expenses, and deliver a consistent, high-quality experience for the families we serve. Continued investment in digital capabilities has
simplified the preplanning process while improving day-to-day efficiency across our organization. Notably, we completed a technology realignment
that we believe will improve the client service experience in the future.
Through ongoing innovation in memorialization and technology-enabled solutions, we offer personalized options at accessible price points, helping
families honor loved ones in ways that are both meaningful and convenient. We are deeply grateful for the more than 25,000 associates who bring
care, professionalism, and commitment to the communities in which we serve. We support associates' growth and long-term career development
through structured training and development programs, mentoring opportunities, targeted leadership initiatives, and continued investment in
learning resources. Their focus on supporting families during moments of remembrance and celebration distinguishes SCI.
Conclusion
As a company dedicated to serving families and strengthening the communities we operate in, we remain focused on putting our clients first,
supporting our associates, and maintaining strong governance and financial discipline. Our strategy emphasizes sustainable growth and long-term
shareholder returns, and we are confident in our ability to continue executing against these priorities. We appreciate your continued confidence in
SCI and look forward to strengthening our position and creating lasting value in the years ahead.
2
Service Corporation International

Message From Our
Board of Directors
We invite you, our shareholders, to the Service Corporation International 2026 Annual Shareholder Meeting on Wednesday, May 6, 2026
at 9:00 a.m. Central Time, at the Company's Headquarters in Houston, TX. This Annual Meeting will be an important one. After 22 years of
dedicated service, Alan R. Buckwalter has decided that he will not stand for reelection as a member of the Board. We will be presenting a new
Director nominee, Carl Loredo, for shareholder consideration.
Shareholders and other interested parties may communicate with any of the independent Directors, including Committee Chairs and the Lead
Independent Director, by using the following address:
Service Corporation International
Lead Independent Director c/o Office of Corporate Secretary
1929 Allen Parkway
Houston, TX 77019
Email: leaddirector@sci-us.com
Thank you for the trust you place in us and for your continued investment in Service Corporation International.
Sincerely,
Marcus A. Watts
Lead Independent Director
Thomas L. Ryan
Chairman and CEO
Alan R. Buckwalter, III
Anthony L. Coelho
Jakki L. Haussler
Victor L. Lund
Ellen Ochoa
C. Park Shaper
Sara Martinez Tucker
Thad Hill
2026 Proxy Statement
3

3/26/2026 Letter Continued (Full PDF)

 

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