[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_99":100},"en-item",{"_9":10,"_10":11},"kind","item",{"_12":13,"_14":15,"_16":17,"_18":19,"_20":21,"_22":23,"_24":25,"_26":27,"_28":29,"_30":31,"_32":31,"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":-5,"_48":49,"_50":-5,"_51":-5,"_52":53,"_54":55,"_56":57,"_58":42,"_59":42,"_60":61,"_62":42,"_63":64},"id","n5vs9aaot28g8paatc59dd43x","revision",2,"title","Service Corporation International公布截至2026年9月30日季度及前九个月业绩：第三季度收入11.073亿美元，净利润1.413亿美元","originalTitle","SERVICE CORP INTERNATIONAL (0000089089) (Filer)","summary","Service Corporation International截至2026年9月30日的第三季度收入为11.073亿美元，同比增长4.6%；归属普通股股东净利润为1.413亿美元，摊薄每股收益1.03美元。","reason","材料提供了SCI截至2026年9月30日季度及前九个月的收入、利润、现金流和分部经营数据，也披露了债务、信托资产及监管审计等事项。","source",{"_12":90,"_91":92,"_9":93,"_94":42,"_95":96,"_97":98},"links",{"_87":88,"_77":89},"publishedAt","2026-10-29T18:00:58.000Z","discoveredAt","2026-10-29T18:13:52.965Z","timelineAt","category","ai-products","tags",[83,84,85,86],"stockSymbols",[82],"score",64,"selected",true,"channel","news","story",{"_72":73,"_16":74},"x","readingMode","full","author","language","body",{"_64":76,"_77":-5,"_78":79,"_80":81},"outline",[],"relatedStories",[75],"indexable","markdownAvailable","group",{"_65":66,"_45":67,"_68":15,"_69":70,"_71":70},"hasTranslation","bodyLanguage","zh","factId","f1Twh3ZvW2ig",{"_72":73,"_16":74},"reportCount","additionalSourceCount",0,"developmentCount","publicId","5230d721-e3ab-4512-a832-22d02f474458","SCI公布三季度业绩并给出四季度指引",{"_72":73,"_16":74},"

美国证券交易委员会

华盛顿特区 20549

Form 10-Q


☒		根据《1934年证券交易法》第 13 或 15(d) 条提交的季度报告
		截至以下日期的季度期间	2026年9月30日
	或
☐		根据《1934年证券交易法》第 13 或 15(d) 条提交的过渡期报告过渡期：自至

委员会档案编号 1-6402-1

$\"SCI_Logo_Icon_Symbol_RGB_Black.jpg\"$

SERVICE CORPORATION INTERNATIONAL

（注册人章程中规定的确切名称）

得克萨斯州

74-1488375

（注册成立或组织所在州或其他司法管辖区）

（美国国税局雇主识别号）

1929 Allen Parkway

休斯敦

得克萨斯州

77019

（主要行政办公室地址）

（邮政编码）

注册人电话号码（含区号）：(713) 522-5141

根据本法第 12(b) 条注册的证券：

各类证券名称

交易代码

上市交易所名称

普通股（面值 $1）

SCI

纽约证券交易所

根据本法第 12(g) 条注册的证券：无

请勾选以表明注册人是否 (1) 已在过去 12 个月内（或注册人被要求提交此类报告的更短期间内）提交了《1934年证券交易法》第 13 或 15(d) 条要求提交的所有报告，且 (2) 在过去 90 天内一直受此类申报要求约束。

是

否

请勾选以表明注册人在过去 12 个月内（或注册人被要求提交此类文件的更短期间内），是否已通过电子方式提交根据 S-T 条例第 405 条（本章 § 232.405）要求提交的所有交互式数据文件。

是

否

请勾选以表明注册人属于大型加速申报公司、加速申报公司、非加速申报公司、较小申报公司还是新兴成长型公司。参见《交易法》规则 12b-2 中“大型加速申报公司”“加速申报公司”“较小申报公司”和“新兴成长型公司”的定义。（勾选一项）：

大型加速申报公司

加速申报公司

非加速申报公司

较小申报公司

☐

新兴成长型公司

☐

如果是新兴成长型公司，请勾选注册人是否选择不使用《交易法》第 13(a) 条规定的、遵守任何新的或修订的财务会计准则的延长过渡期。

请勾选以表明注册人是否为壳公司（定义见本法规则 12b-2）。

是

☐

否

截至2026年10月29日，注册人的普通股流通股数为135,907,343股（扣除库存股后）。


SERVICE CORPORATION INTERNATIONAL 目录

页码
术语表	3
第一部分财务信息	5
第1项。	财务报表	5
	未经审计的简明合并经营报表 - 截至2026年和2025年9月30日的三个月和九个月	5
	未经审计的简明合并综合收益表 - 截至2026年和2025年9月30日的三个月和九个月	6
	未经审计的简明合并资产负债表 - 2026年9月30日和2025年12月31日	7
	未经审计的简明合并现金流量表 - 截至2026年和2025年9月30日的九个月	8
	未经审计的简明合并权益变动表 - 截至三个月和九个月 2026年和2025年9月30日	9
	未经审计的简明合并财务报表附注	11
	1. 经营性质	11
	2. 重要会计政策摘要	11
	3. 预先安排活动	13
	4. 所得税	19
	5. 债务	20
	6. 金融工具的信用风险与公允价值	22
	7. 权益	22
	8. 分部报告	23
	9. 承诺与或有事项	25

	10. 每股收益	25

第2项。	管理层对财务状况和经营成果的讨论与分析	27
	公司	27
	财务状况、流动性和资本资源	27
	经营成果 - 截至三个月和九个月 2026年和2025年9月30日	34
	关键会计政策	40
	前瞻性陈述警示声明	40
第3项。	有关市场风险的定量和定性披露	42
第4项。	控制与程序	42
第二部分. 其他信息	43
第1项。	法律诉讼	43
第1A项。	风险因素	43
第2项。	未注册的股权证券销售及所得款项用途	43
第3项。	优先证券违约	43
第4项。	矿山安全披露	43
第5项。	其他信息	43
第6项。	附件	44
签名	45

2 Service Corporation International

术语表

以下术语为殡葬服务行业的常用术语，在本报告中贯穿使用，含义如下：

身后服务 — 死亡发生后售出的殡葬服务（包括火化）和墓园安排。

单项服务平均收入 — 每项已提供殡葬服务的平均收入，不包括非殡仪馆预需销售收入、核心总代理收入及某些其他收入的影响。

取消 — 终止预需合同，从而免除我们提供合同所含商品和服务的义务。客户可以申请取消；如果客户未遵守合同付款条款，我们也可以主动取消。州或省法律规定应退还给客户的金额（如有）。

护理信托本金 — 纳入墓园永久护理信托、可能无法提取的存款和已实现净资本利得。在某些州，部分或全部已实现净资本利得可以分配给我们。此外，一些州允许进行总回报分配，其中可能包含收入、资本增值和本金。

墓园墓碑 — 用于标识特定墓位、墓室、骨灰龛或火化纪念场所中逝者身份的物品。永久墓葬和火化纪念用墓园标记通常由青铜或石材制成。

墓园商品和服务 — 与墓园安葬相关的商品和服务，包括石制和青铜纪念碑、墓园标记、外置棺椁、鲜花摆放、墓旁服务、商品安装、骨灰瓮和安葬服务。

墓园永久护理信托或捐赠护理基金（ECF） — 为永久维护墓园场地和物业而设立的信托基金。对于这些信托，本金通常永久留在信托中；投资收益或选定的分配款会定期提取，旨在抵销我们维护墓园所产生的费用。在某些州，部分或全部已实现净资本利得也可以分配。此外，一些州通常允许进行总回报分配，其中可能包含收入、资本增值和本金。

墓园物业 — 已开发墓位、草坪墓室、陵墓空间、骨灰龛和火化纪念场所项目（已建成并可供安葬），以及我们计划开发并出售安葬权的未开发土地。包括新建已开发物业项目处于施工前和施工阶段期间的在建工程余额。

墓园物业摊销或墓园物业摊销额 — 墓园物业安葬权确认的非现金费用，按具体合同与墓园物业收入对应记录。

墓园物业安葬权 — 决定将在特定墓园物业空间内安葬何人遗骸的专有权。另见下文“墓园物业收入”。

墓园物业收入 — 当应收款被认定为可收回，且物业已全部建成并可供安葬时，确认的墓园物业安葬权销售收入。

组合地点（组合体） — 殡葬服务场所位于 SCI 自有墓园场所内或毗邻该场所的地点。

火化 — 通过高温将人体遗骸化为骨骼碎片。

火化纪念 — 专为纪念和缅怀已火化者而设计的产品。这些产品包括墓园内用于安置火化遗骸的墓园产权项目，例如长椅、巨石、雕像、火化骨灰龛等。还包括纪念墙和纪念碑，刻有逝者姓名，但遗骸已撒葬或由家人保管。

火化骨灰龛 — 地上安葬空间，用于放置并封存装有逝者火化遗骸及其他纪念物的骨灰 urn。

殡葬商品与服务 — 商品包括棺木及相关配件、外置墓葬容器、骨灰 urn 及其他火化容器、棺木和火化纪念产品、鲜花；殡葬专业服务包括安排和主持仪式、使用殡仪设施和车辆、遗体接运、遗体处理、防腐、火化、纪念服务、吊唁、旅行保障及餐饮。

已提供的殡葬服务 — 死亡日期之后提供的殡葬服务数量，包括火化，有时也称为殡葬业务量。

一般代理（GA）收入 — 我们从第三方人寿保险公司获得的佣金，这些公司向预先安排客户出售人寿保险保单，用于为预先安排的殡葬服务提供资金。佣金率根据所售产品类型、缴费期限以及被保险人/年金领取人的健康状况和年龄确定。

FORM 10-Q 3

安葬 — 将人体遗骸最终安置于地下（埋葬）、陵墓中（入葬），或火化骨灰龛或火化纪念墓园产权中（安放骨灰）。

草坪墓穴 — 墓园产权，其中指定区域已预先安装由混凝土和钢筋建造的地下外置墓葬容器。

到期 — 底层合同约定的商品交付或服务履行之时，通常发生在死亡时。此时，预先安排的殡葬合同转为按需殡葬合同（注：某些商品和服务可在死亡前交付或提供）。

陵墓 — 地上建筑，专为存放棺木和/或火化骨灰 urn 而设计。

商品与服务信托 — 根据州或省法律设立的信托账户，我们将客户为预先安排的殡葬、火化或墓园商品与服务所支付款项中的规定比例存入该账户，以供我们将来交付或提供。只有在我们履行完预先安排合同义务或合同取消后，方可提取存入款项。也称为预先安排信托。

非殡仪馆预先安排销售收入 — 来自非殡仪馆一般代理业务的收入，以及向预先安排客户销售并在死亡发生前交付的商品和旅行保障收入净额。

外部墓葬容器 — 一种加固容器，旨在防止地面下陷，并在棺木入土后容纳棺木，也称为墓穴外棺。

预先安排 — 在死亡发生前，或在产品和服务交付前购买墓园土地安葬权或任何殡葬、墓园商品及服务。

预先安排积压额或预先安排收入积压额 — 尚未履行的预先安排殡葬、火化及墓园合同安排所产生的未来收入。

预先安排墓园销售业绩 — 预先安排墓园合同的销售额。这些销售额计入递延收入净额，直至商品交付、服务履行，或墓地建成并可供安葬，且应收款被认定为可收回。

预先安排殡葬销售业绩 — 预先安排殡葬信托出资和保险出资合同的销售额。预先安排殡葬信托出资合同计入递延收入净额，直至商品交付或服务履行。由于合同由客户与保险提供商签订，我们不会在合并资产负债表中反映未履行的保险出资预先安排殡葬合同金额。此类保单的收入在我们履行服务并交付商品时确认。人寿保险保单的款项将在保单到期时通过死亡赔偿金索赔收到。

预先安排应收款净额 — 在死亡发生前我们已交付商品、履行服务或转让墓园土地安葬权控制权时应向我们支付的客户款项，以及不可撤销预先安排合同项下应向我们支付的客户款项。

旅行保障 — 由第三方提供的一项服务；如果购买者在其住所一定半径范围外去世，该服务会将遗体运送至其选择的服务殡仪馆。

信托基金收入 — 我们的商品、服务及永久护理信托投资所确认的投资收益。

本文中的“SCI”“Company”“we”“our”和“us”均指 Service Corporation International 及其直接或间接拥有的公司，除非上下文另有要求。管理层已在公司网站发布白皮书，以进一步说明预先安排销售的会计处理。您可在 http://investors.sci-corp.com 的 Featured Documents 栏目查看该白皮书。我们网站上的文件和信息不以引用方式纳入本文。

4 Service Corporation International


第一部分：财务信息

第1项。财务报表

Service Corporation International

简明合并经营报表（未经审计）


	截至9月30日的三个月			截至9月30日的九个月
	2026		2025			2026	2025
	（单位：千，股份金额除外）
收入
墓园和商品收入	$	533,278			$	519,210		$	1,568,796	$	1,530,876
服务收入	452,922			431,785			1,392,321		1,351,994
其他收入	121,062			107,101			345,887		314,837
总收入	1,107,262			1,058,096			3,307,004		3,197,707

收入成本
墓园和商品成本	(287,263)			(269,857)			(840,556)		(806,641)
服务成本	(259,299)			(242,007)			(767,408)		(731,562)
间接费用及其他支出	(288,427)			(280,689)			(866,815)		(831,106)
收入总成本	(834,989)			(792,553)			(2,474,779)		(2,369,309)
毛利润	272,273			265,543			832,225		828,398
公司一般及行政费用	(30,593)			(38,332)			(116,279)		(132,499)
重组费用	—			(405)			—		(1,980)
资产剥离收益（损失）及减值费用，净额	11,210			(415)			12,346		8,618



营业收入	252,890			226,391			728,292		702,537
利息费用	(64,993)			(65,683)			(193,710)		(191,237)

其他收入，净额	902			153			2,243		7,219
税前收入	188,799			160,861			536,825		518,519
所得税拨备	(47,478)			(43,339)			(134,754)		(135,146)


净利润	141,321			117,522			402,071		383,373
归属于非控股权益的净利润	(45)			(49)			(162)		(155)
归属于普通股股东的净利润	$	141,276			$	117,473		$	401,909	$	383,218
基本每股收益：
归属于普通股股东的净利润	$	1.04			$	0.84		$	2.92	$	2.70
基本加权平均股数	136,439			140,318			137,652		142,097
摊薄每股收益：
归属于普通股股东的净利润	$	1.03			$	0.83		$	2.90	$	2.68
摊薄加权平均股数	137,226			141,424			138,484		143,227

（参见未经审计简明合并财务报表附注）

10-Q 表格 5

第一部分

Service Corporation International

简明合并综合收益表（未经审计）


	截至9月30日的三个月	截至9月30日的九个月
		2026		2025		2026		2025
		（单位：千）
净利润		$	141,321			$	117,522		$	402,071	$	383,373
其他综合收益：
外币折算调整		389			(8,130)			(15,756)		12,992

综合收益总额		141,710			109,392			386,315		396,365
归属于非控股权益的综合收益总额		(45)			(49)			(162)		(155)
归属于普通股股东的综合收益总额		$	141,665			$	109,343		$	386,153	$	396,210

（参见未经审计简明合并财务报表附注）

6 Service Corporation International

第一部分

Service Corporation International

简明合并资产负债表（未经审计）


	2026年9月30日		2025年12月31日
	（单位：千，股份数额除外）

资产
流动资产：
现金及现金等价物	$	172,653			$	243,581
应收款项，扣除准备金分别为$3,270和$3,944	103,103			100,415
存货	37,921			35,246

其他	47,144			32,551
流动资产总额	360,821			411,793
预先安排业务应收款项，扣除准备金分别为$34,768和$34,680，以及信托投资	7,585,365			7,360,793
墓园资产	2,278,344			2,201,967
物业及设备，净额	2,875,899			2,751,761
商誉	2,188,137			2,169,055
递延费用及其他资产，扣除准备金分别为$2,975和$2,460	1,339,115			1,360,530
墓园永久护理信托投资	2,465,566			2,398,613
资产总额	$	19,093,247			$	18,654,512

负债及权益
流动负债：
应付账款及应计负债	$	708,721			$	685,156
长期债务的流动部分	195,060			56,847
应付所得税	261			3,701
流动负债总额	904,042			745,704
长期债务	4,977,888			5,082,970
递延收入，净额	1,820,555			1,779,266
递延税项负债	718,681			691,033
其他负债	590,529			550,793
递延薪酬计划股份奖励	7,186			—
信托持有的递延收款	6,050,706			5,784,398
护理信托本金	2,448,379			2,381,507
承诺及或有事项（附注9）

权益：
普通股，面值每股 $1，授权发行 500,000,000 股，分别已发行 142,534,193 股和 141,957,004 股，分别发行在外 136,051,688 股和 139,678,199 股	136,052			139,678
超过面值的资本	990,639			987,210
留存收益	451,446			498,958
累计其他综合收益	(3,331)			12,425
普通股股东权益总额	1,574,806			1,638,271
非控股权益	475			570
权益总额	1,575,281			1,638,841
负债和权益总额	$	19,093,247			$	18,654,512

（参阅未经审计的简明合并财务报表附注）

10-Q 表格 7

第一部分

Service Corporation International

简明合并现金流量表（未经审计）


	截至 9 月 30 日的九个月
	2026		2025
	（单位：千）
经营活动产生的现金流量：
净利润	$	402,071			$	383,373
将净利润调节为经营活动提供的现金净额：



折旧和摊销	172,429			163,462
无形资产摊销	10,465			12,353
墓园资产摊销	74,592			73,785
贷款成本摊销	6,743			6,605
预期信用损失准备	7,254			7,394
递延所得税准备	28,492			32,310
资产剥离收益和减值费用，净额	(12,346)			(8,618)

股份薪酬	14,786			13,624

资产和负债变动，扣除收购和资产剥离的影响：
应收款项减少（增加）	8,495			(2,487)
其他资产减少（增加）	54,640			(18,115)
应付款项和其他负债增加	35,175			26,006
预售业务销售和到期的影响：
预售应收款项净额和信托投资增加	(4,902)			(34,056)
递延收入净额增加	23,046			29,994
信托持有的递延收款增加	48,348			44,230



经营活动提供的现金净额	869,288			729,860
投资活动产生的现金流量：
资本支出	(275,047)			(262,818)
企业收购，扣除取得的现金	(73,262)			(65,098)
房地产收购	(16,506)			(6,610)
公司总部	(72,419)			(44,942)
资产剥离及出售不动产和设备所得款项	18,648			28,267

支付公司自有人寿保险保单款项	(10,818)			(216)
公司自有人寿保险保单及其他所得款项	—			11,433
税收抵免股权投资	(40,737)			(1,435)


投资活动使用的现金净额	(470,141)			(341,419)
融资活动产生的现金流量：
发行长期债务所得款项	530,000			655,011

计划偿还债务	(20,622)			(19,117)
提前偿还债务	(550,000)			(490,000)
公司总部债务融资安排所得款项	56,086			33,533

融资租赁本金偿付	(30,122)			(28,590)
行使股票期权所得款项	23,424			20,904

购买公司普通股	(318,942)			(402,093)
支付股息	(145,421)			(135,977)

银行透支及其他	(11,533)			(2,548)

融资活动使用的现金净额	(467,130)			(368,877)


外币汇率影响	(4,043)			3,522
现金、现金等价物及受限现金净（减少）增加额	(72,026)			23,086
期初现金、现金等价物及受限现金	246,468			221,399
期末现金、现金等价物及受限现金	$	174,442			$	244,485

（参阅未经审计的简明合并财务报表附注）

8 Service Corporation International

第一部分

Service Corporation International

简明合并权益变动表（未经审计）


	普通股		库存股股票，面值		超过面值的实收资本		留存收益	累计其他综合收益（亏损）		非控股权益	总计
	（单位：千美元，每股金额除外）
2024年12月31日余额	$	146,670			$	(1,975)		$	986,830		$	553,701		$	(7,221)		$	664	$	1,678,669
综合收益	—			—			—		142,880		527		47			143,454
已宣派普通股股息（每股$0.32）	—			—			—		(45,991)		—		—			(45,991)
已赚取的股份支付薪酬	—			—			3,841		—		—		—			3,841
行使股票期权	95			—			3,812		—		—		—			3,907
限制性股票奖励，扣除没收部分	120			—			(120)		—		—		—			—
回购公司普通股	—			(1,636)			(12,619)		(116,558)		—		—			(130,813)

向非控股权益付款	—			—			—		—		—		(166)			(166)

其他	—			—			(1,281)		—		—		—			(1,281)
2025年3月31日余额	$	146,885			$	(3,611)		$	980,463		$	534,032		$	(6,694)		$	545	$	1,651,620
综合收益	—			—			—		122,865		20,595		59			143,519
已宣派普通股股息（每股$0.32）	—			—			—		(45,138)		—		—			(45,138)
已赚取的股份支付薪酬	22			—			5,726		—		—		—			5,748
行使股票期权	3			—			130		—		—		—			133

回购公司普通股	—			(2,493)			(18,988)		(174,007)		—		—			(195,488)

向非控股权益付款	—			—			—		—		—		(40)			(40)

其他	—			—			(2)		—		—		1			(1)
2025年6月30日余额	$	146,910			$	(6,104)		$	967,329		$	437,752		$	13,901		$	565	$	1,560,353
综合收益	—			—			—		117,473		(8,130)		49			109,392
已宣派普通股股息（每股$0.32）	—			—			—		(44,848)		—		—			(44,848)
已赚取的股份支付薪酬	—			—			4,035		—		—		—			4,035
行使股票期权	424			—			16,440		—		—		—			16,864

回购公司普通股	—			(985)			(7,207)		(70,316)		—		—			(78,508)



其他	1			—			(3)		—		—		(2)			(4)
2025年9月30日余额	$	147,335			$	(7,089)		$	980,594		$	440,061		$	5,771		$	612	$	1,567,284

（参见未经审计的简明合并财务报表附注）

FORM 10-Q 9

第一部分


	普通股		库存股股票，面值		超过面值的实收资本		留存收益	累计其他综合收益（亏损）		非控股权益	总计
	（单位：千美元，每股金额除外）
2025年12月31日余额	$	141,957			$	(2,279)		$	987,210		$	498,958		$	12,425		$	570	$	1,638,841
综合收益（亏损）	—			—			—		135,808		(7,116)		65			128,757
已宣派普通股股息（每股$0.34）	—			—			—		(47,080)		—		—			(47,080)
已赚取的股份支付薪酬	—			—			4,163		—		—		—			4,163
行使股票期权	136			—			5,893		—		—		—			6,029
限制性股票奖励，扣除没收部分	122			—			(122)		—		—		—			—
回购公司普通股	—			(1,789)			(13,881)		(128,706)		—		—			(144,376)

向非控股权益付款	—			—			—		—		—		(97)			(97)

其他	—			—			(1,288)		—		—		—			(1,288)
2026年3月31日余额	$	142,215			$	(4,068)		$	981,975		$	458,980		$	5,309		$	538	$	1,584,949
综合收益（亏损）	—			—			—		124,825		(9,029)		52			115,848
已宣派普通股股息（每股$0.36）	—			—			—		(49,283)		—		—			(49,283)
已赚取的股份支付薪酬	25			—			6,199		—		—		—			6,224
行使股票期权	9			—			561		—		—		—			570

回购公司普通股	—			(1,562)			(12,294)		(106,622)		—		—			(120,478)

向非控股权益付款	—			—			—		—		—		(81)			(81)

其他	—			—			11		—		—		—			11
2026年6月30日余额	$	142,249			$	(5,630)		$	976,452		$	427,900		$	(3,720)		$	509	$	1,537,760
综合收益	—			—			—		141,276		389		45			141,710
已宣派普通股股息（每股$0.36）	—			—			—		(49,058)		—		—			(49,058)
已赚取的股份支付薪酬	—			—			4,399		—		—		—			4,399
行使股票期权	379			—			16,446		—		—		—			16,825

回购公司普通股	—			(658)			(4,935)		(47,175)		—		—			(52,768)
递延薪酬计划股份的返还及重新分类	(94)			(194)			(1,776)		(21,497)		—		—			(23,561)
向非控股权益付款	—			—			—		—		—		(79)			(79)

其他	—			—			53		—		—		—			53
2026年9月30日余额	$	142,534			$	(6,482)		$	990,639		$	451,446		$	(3,331)		$	475	$	1,575,281

（参见未经审计的简明合并财务报表附注）

10 Service Corporation International

第一部分

Service Corporation International

未经审计的简明合并财务报表附注

1. 经营性质

Service Corporation International（SCI）是一家控股公司，所有业务均由其子公司开展。我们是北美最大的殡葬产品和服务提供商，在美国和加拿大拥有殡仪服务地点和墓园网络。我们的殡仪服务和墓园业务包括殡仪服务地点、墓园、殡仪服务与墓园组合地点、火葬场及其他相关业务，使我们能够满足客户的广泛需求。我们按需及预先安排销售墓园产权，以及殡葬和墓园商品与服务。我们致力于为家庭提供卓越服务，协助他们策划人生庆典并留下个性化纪念。

殡仪服务地点提供与葬礼和火葬相关的所有专业服务，包括使用殡仪设施和机动车辆、安排和主持仪式、遗体接运、遗体处理、防腐、火葬、纪念服务、旅行保障和餐饮服务。殡葬商品包括棺材及相关配件、骨灰 urn 及其他火化容器、外置墓葬容器、鲜花、在线和视频纪念内容、文具产品、棺材和火化纪念产品及其他辅助商品，均在我们的殡仪服务地点销售。

我们的墓园提供墓园安葬权，包括已开发墓地、草坪墓穴、陵墓空间、骨灰安放龛位及定制库存，包括私人陵墓、家族墓园和专属火化纪念选项。墓园商品和服务包括墓园纪念碑及基座、外置墓葬容器、鲜花和花艺摆放、其他辅助商品、墓穴旁服务、商品安装和安葬，均在我们的墓园销售。

2. 重要会计政策摘要

合并原则和列报基础

我们的未经审计简明合并财务报表包括 SCI 及我们拥有控制性财务权益的所有子公司的账目。合并时已抵销公司间余额和交易。

我们的未经审计简明合并财务报表还包括我们拥有可变权益且为主要受益人的商品、服务和墓园永久护理信托的账目。合并这些信托时，我们保留了行业专用会计原则。这些信托属于可变利益实体；我们认定自己是主要受益人，因为我们承担了与这些信托相关的大部分损失并获得大部分回报。尽管我们合并了这些信托，但这不会改变信托、我们或客户之间的法律关系。客户是这些信托的法定受益人，因此他们在这些信托中的权益对我们而言代表一项负债。

我们的中期简明合并财务报表未经审计，但包含所有调整，包括正常的经常性应计项目以及管理层认为为公允列报这些期间业绩所必需的任何其他调整。除非本文另有披露，我们未经审计的简明合并财务报表按照我们截至2025年 12月 31日止年度的10-K表年度报告中所述会计政策编制，并应与该报告一并阅读。所附年末简明合并资产负债表数据源自经审计的财务报表，但未包含美国公认会计原则要求的所有披露。中期经营业绩不一定代表全年期间可能取得的业绩。

我们对以前期间的金额进行了某些重新分类，以符合本期披露的列报方式，但对合并净收益、现金流或权益没有影响。

编制财务报表时使用估计

按照美国公认会计原则编制合并财务报表，要求管理层作出估计和假设，这些估计和假设可能影响合并财务报表日资产和负债以及或有资产和负债的报告金额和披露，以及报告期内收入和费用的报告金额。因此，实际结果可能与这些估计不同。

现金、现金等价物及受限现金

我们将所有原始到期日为三个月或以下的高流动性投资视为现金等价物。由于这些工具期限较短，我们的现金和现金等价物账面金额接近其公允价值。

10-Q表 11

第一部分

现金、现金等价物及受限现金的构成如下：


	2026年9月30日		2025年12月31日
	（千美元）
现金及现金等价物	$	172,653			$	243,581
受限现金(1)：
计入其他流动资产	1,136			2,231
计入递延费用及其他资产净额	653			656
受限现金总额	1,789			2,887
现金、现金等价物及受限现金总额	$	174,442			$	246,468

(1) 两个期间的受限现金主要包括根据美国国税局法规第1031条存入托管账户的资产剥离所得款项，以及某些保险单项下的抵押债务。

应收款项净额

我们未经审计的简明合并资产负债表中应收款项净额的构成如下：


	2026年9月30日
	需丧葬服务的丧葬应收款		需丧葬服务的墓园应收款		杂项		票据流动部分	总计
	（千美元）
应收款项	$	29,089			$	22,952		$	54,155	$	177	$	106,373
信用损失准备	(1,450)			(1,525)			(198)		(97)	(3,270)
应收款项净额	$	27,639			$	21,427		$	53,957	$	80	$	103,103


	2025年12月31日
	需丧葬服务的丧葬应收款		需丧葬服务的墓园应收款		杂项		票据流动部分	合计
	（千美元）
应收款项	$	38,830			$	20,396		$	44,960	$	173	$	104,359
信用损失准备金	(1,866)			(1,799)			(170)		(109)	(3,944)
应收款项净额	$	36,964			$	18,597		$	44,790	$	64	$	100,415

12 Service Corporation International

第一部分

近期发布的会计准则

利润表费用的细分披露

2024年11月，FASB发布了相关指引，要求披露利润表正文所列费用项目中包含的特定类型费用，以及销售费用。该指引适用于2026年12月15日之后开始的年度报告期间，允许提前采用，可采用未来适用法或追溯法。采用后，我们将在财务报表及相关附注中增加披露；但该指引不会对我们的财务状况或经营业绩产生重大影响。

内部使用软件

2025年9月，FASB发布了相关指引，以更新根据《子主题350-40：无形资产——商誉及其他——内部使用软件》核算的软件成本会计处理。该新指引自2028年度期间起对我们生效，允许提前采用，可采用未来适用法、修订追溯法或追溯法。我们目前正在评估该指引的影响，并将在采用后将修订应用于财务报表及相关附注。

3. 预先安排业务

预先安排应收款项净额及信托投资

未经审计的合并简明资产负债表中预先安排应收款项净额及信托投资的组成部分如下：



	2026年9月30日		2025年12月31日
	（千美元）
预先安排应收款项净额	$	1,526,368			$	1,561,836

信托投资，按公允价值计量	8,296,929			7,965,010

保险支持的固定收益证券及其他	227,634			232,560
信托投资	8,524,563			8,197,570
减：墓园永久护理信托投资	(2,465,566)			(2,398,613)
预先安排信托投资	6,058,997			5,798,957

预先安排应收款项净额及信托投资	$	7,585,365			$	7,360,793

10-Q 表格 13

第一部分

预先安排应收款项净额包括以下内容：


	2026年9月30日
	殡葬		墓园		合计
	（千美元）
预先安排应收款项	$	122,778			$	1,487,628		$	1,610,406
未赚取融资费用	(15,465)			(33,805)			(49,270)
预先安排应收款项，按摊余成本计量	107,313			1,453,823			1,561,136
信用损失准备金	(20,707)			(14,061)			(34,768)
预先安排应收款项净额	$	86,606			$	1,439,762		$	1,526,368

	2025年12月31日
	殡葬		墓园		合计
	（千美元）
预先安排应收款项	$	142,485			$	1,482,721		$	1,625,206
未赚取融资费用	(13,486)			(15,204)			(28,690)
预先安排应收款项，按摊余成本计量	128,999			1,467,517			1,596,516
信用损失准备金	(20,632)			(14,048)			(34,680)
预先安排应收款项净额	$	108,367			$	1,453,469		$	1,561,836

截至2026年9月30日，我们的预先安排应收款项按发放年份划分的摊余成本基础如下：



	2026		2025		2024		2023	2022		此前	合计
	（千美元）
预先安排应收款项，按摊余成本计量：
殡葬	$	17,620			$	15,149		$	25,085		$	19,551		$	9,906		$	20,002	$	107,313
墓园	412,617			449,960			298,832		175,528		77,233		39,653			1,453,823
预先安排应收款项摊余成本总额	$	430,237			$	465,109		$	323,917		$	195,079		$	87,139		$	59,655	$	1,561,136

截至2026年9月30日，我们的预先安排应收款项付款状态如下：


	逾期
	<30天		30-90 天		90-180 天		>180 天	总计		当前	总计
	（单位：千）
预先安排应收款项，按摊余成本计量：
殡葬	$	2,336			$	2,456		$	759		$	31,389		$	36,940		$	70,373	$	107,313
墓园	51,245			43,163			15,902		6,515		116,825		1,336,998			1,453,823
预先安排应收款项总额，按摊余成本计量	$	53,581			$	45,619		$	16,661		$	37,904		$	153,765		$	1,407,371	$	1,561,136

14 国际服务公司

第一部分

下表汇总了截至2026年9月30日的九个月内预先安排应收款项信用损失准备的变动情况：



	2025年12月31日		预期信用损失拨备				核销额		外币折算影响		2026年9月30日
	（单位：千）
殡葬	$	(20,632)			$	(2,441)			$	2,364			$	2	$	(20,707)
墓园	(14,048)			(745)				725				7	(14,061)
预先安排应收款项信用损失准备总额	$	(34,680)			$	(3,186)			$	3,089			$	9	$	(34,768)

下表列示了与我们的信托相关的若干投资活动：


	截至9月30日的三个月		截至9月30日的九个月
	2026		2025	2026		2025
	（单位：千）
存入	$	186,164		$	172,169		$	533,715	$	488,925
提取	$	160,270		$	161,288		$	485,267	$	437,892
证券购买	$	754,731		$	468,919		$	1,963,948	$	1,854,184
证券出售	$	653,627		$	401,392		$	1,812,250	$	1,728,555
证券出售实现的收益(1)	$	110,678		$	114,746		$	487,268	$	344,420
证券出售实现的损失(1)	$	(45,278)		$	(20,908)		$	(117,107)	$	(96,108)

(1)所有已实现收益和损失均计入信托投资的其他净收益，并通过在其他净收益中进行相应的重新分类予以抵销，重新分类至信托持有的递延收入和护理信托本金。

FORM 10-Q 15

第一部分

按市值计量的信托投资的成本和市值详列如下。成本反映控制持有人对信托的投资。公允价值代表信托持有的相关证券的价值。


		2026年9月30日
	公允价值层级级别	成本		未实现收益		未实现损失		价值
				（单位：千）
固定收益证券：
美国国债	2	$	51,652			$	23		$	(1,063)	$	50,612
加拿大政府债券	2	24,952			—			—		24,952
公司债券	2	10,536			31			(41)		10,526
住宅抵押贷款支持证券	2	2,958			—			(73)		2,885
资产支持证券	2	306			—			(50)		256
股权证券：
优先股	2	19,906			1,026			(962)		19,970
普通股：
美国	1	2,190,561			750,889			(130,484)		2,810,966
加拿大	1	41,307			33,170			(2,417)		72,060
其他国际市场	1	169,181			37,960			(16,100)		191,041
共同基金：
股权	1	973,691			308,425			(7,788)		1,274,328
固定收益	1	717,924			1,303			(50,291)		668,936

按公允价值计量的信托投资		4,202,974			1,132,827			(209,269)		5,126,532
集合基金
固定收益		1,507,309			302			(113,759)		1,393,852
股权		408,414			137,248			(1,511)		544,151
货币市场基金		405,758			—			—		405,758
另类投资		533,097			305,718			(12,179)		826,636
按资产净值计量的信托投资		2,854,578			443,268			(127,449)		3,170,397
按市值计量的信托投资		$	7,057,552			$	1,576,095		$	(336,718)	$	8,296,929

截至2026年9月30日和2025年12月31日，我们私募股权投资的未出资承诺分别为5.326亿美元和4.357亿美元；如被要求出资，将由信托资产提供资金。

16 国际服务公司

第一部分


		2025年12月31日
	公允价值层级级别	成本		未实现收益		未实现损失		价值
				（单位：千）
固定收益证券：
美国国债	2	$	50,233			$	305		$	(488)	$	50,050
加拿大政府债券	2	26,086			—			—		26,086
公司债券	2	10,352			310			(7)		10,655
住宅抵押贷款支持证券	2	3,202			68			(28)		3,242
资产支持证券	2	279			—			(41)		238
权益证券：
优先股	2	13,831			2,428			—		16,259
普通股：
美国	1	2,071,402			745,982			(95,511)		2,721,873
加拿大	1	41,650			34,904			(1,219)		75,335
其他国际市场	1	167,881			43,880			(5,910)		205,851
共同基金：
权益	1	938,778			253,372			(5,546)		1,186,604
固定收益	1	671,067			8,531			(27,280)		652,318

信托投资，按公允价值计量		3,994,761			1,089,780			(136,030)		4,948,511
集合基金
固定收益		1,387,350			14,443			(50,208)		1,351,585
权益		362,862			155,590			—		518,452
货币市场基金		423,957			—			—		423,957
另类投资		503,898			228,320			(9,713)		722,505
信托投资，按资产净值计量		2,678,067			398,353			(59,921)		3,016,499
信托投资，按市值计量		$	6,672,828			$	1,488,133		$	(195,951)	$	7,965,010

我们的另类投资包括投资于有限合伙企业的基金，其投资涉及私募股权、私募市场房地产、能源和自然资源、基础设施、交通运输以及包括不良债务和夹层融资在内的私人债务。这些投资永远不能由基金赎回。相反，由于此类投资的性质，基金通过清算底层资产获得分配。基金管理人尚未告知任何清算的时间。

我们的固定收益证券到期日从2026年到2082年不等。2026年9月 30日固定收益证券（不包括共同基金）的到期情况估计如下：


	公允价值
	（单位：千）
一年以内到期	$	48,955
一至五年内到期	34,012
五至十年内到期	5,900
此后到期	364
固定收益证券估计到期总额	$	89,231

截至2026年和2025年9月30日止三个月，与我们的预先安排信托投资相关的已确认信托基金收入（已实现和未实现）分别为6,270万美元和5,100万美元。截至2026年和2025年9月30日止三个月，与我们的墓园永久护理信托投资相关的已确认信托基金收入（已实现和未实现）分别为3,360万美元和2,770万美元。

10-Q 表格 17

第一部分

截至2026年和2025年9月30日止九个月，与我们的预先安排信托投资相关的已确认信托基金收入（已实现和未实现）分别为1.816亿美元和1.469亿美元。截至2026年和2025年9月30日止九个月，与我们的墓园永久护理信托投资相关的已确认信托基金收入（已实现和未实现）分别为9,910万美元和8,080万美元。

递延收入净额

递延收入净额代表未来收入，包括与尚未履行的信托资助预先安排合同相关、但未存放在信托账户中的已分配信托投资收益。存放在信托账户中的未来收入和信托投资收益净额计入信托持有的递延收款。

未经审计的简明合并资产负债表中的递延收入净额构成如下：


	2026年9月30日		2025年12月31日
	（单位：千）
递延收入	$	2,817,425			$	2,790,149
因可取消的预先安排合同未履行履约义务而应收客户的款项	(996,870)			(1,010,883)
递延收入净额	$	1,820,555			$	1,779,266

下表汇总了合同负债的活动情况，这些负债反映在递延收入净额和以信托形式持有的递延收款中：


	截至9月30日的九个月
	2026		2025
	（千美元）
期初余额 — 递延收入净额和以信托形式持有的递延收款	$	7,563,664			$	6,917,695
预先安排合同销售净额	1,028,049			988,477
收购业务净额	7,120			6,841
投资收益（亏损）净额(1)	215,584			496,097
确认的积压收入(2)	(472,833)			(416,911)
确认的本期销售收入	(469,712)			(483,301)
未履行履约义务应付款项的变动	13,080			(17,012)
取消准备金的变动	(715)			(1,259)
外币折算影响及其他	(12,976)			3,598
期末余额 — 递延收入净额和以信托形式持有的递延收款	$	7,871,261			$	7,494,225

(1)包括已实现和未实现的投资收益（亏损）

(2)包括截至履约日期的本年度信托基金收入

18 Service Corporation International

第一部分

4. 所得税

中期期间的所得税费用基于我们估计的年度有效所得税率，并加上任何离散项目；离散项目在其发生期间入账。离散项目包括但不限于因纳税申报表最终确定而导致的估计变更、税务审计和解、诉讼时效届满，以及递延所得税资产估值备抵的增加或减少。截至2026年和2025年9月30日止三个月，我们的有效税率分别为25.1%和26.9%。截至2026年和2025年9月30日止九个月，我们的有效税率分别为25.1%和26.1%。截至2025年9月30日止三个月和九个月的有效税率较高，主要是由于上一年度记录了一项与2024年纳税申报表最终确定相关的估计变更。截至2026年9月30日止三个月和九个月的有效税率高于21.0%的联邦法定税率，主要是由于州税和外国税费用。

我们参与符合联邦投资税收抵免条件的可再生能源项目的税务股权投资。这些投资采用比例摊销法进行会计处理。税收抵免及其他相关税务优惠在实现时确认为所得税费用的减项，同时按照收到的税务优惠比例摊销投资。在截至2026年9月30日的九个月内，我们确认了5210万美元的投资税收抵免及其他税务优惠，并记录了与这些投资相关的4990万美元摊销。税收抵免及相关摊销在合并经营报表的所得税拨备中以净额列示。截至2026年9月 30日，可再生能源税收抵免投资的未摊销余额为110万美元，计入递延费用及其他资产。截至2025年12月 31日，可再生能源税收抵免投资的未摊销余额为5110万美元，与这些投资相关的未出资承诺总额为4080万美元。这些金额分别计入合并资产负债表中的递延费用及其他资产和应付账款及应计负债。

2022年以前所有纳税年度的联邦法定时效均已届满。目前，我们的2022年联邦所得税申报表正接受美国国税局审计，2022年至2024年的部分州所得税申报表也正在接受审计。目前加拿大没有联邦或省级审计，但2021年之后的年度仍可能接受审查。目前无法预测这些审计的结果。

10-Q表 19

第一部分

5. 债务

债务构成如下：


	2026年9月30日		2025年12月31日
	（单位：千）
7.500% 2027年4月到期优先票据	$	136,924			$	136,924
4.625% 2027年12月到期优先票据	550,000			550,000
5.125% 2029年6月到期优先票据	750,000			750,000
3.375% 2030年8月到期优先票据	850,000			850,000
4.000% 2031年5月到期优先票据	800,000			800,000

5.750% 2032年10月到期优先票据	800,000			800,000
2030年11月到期定期贷款	735,938			750,000

2030年11月到期银行信贷额度	235,000			255,000
2037年2月到期总部债务融资额度	110,852			54,766
融资租赁义务	160,547			151,061
抵押票据及其他债务，到期日不晚于2050年	76,092			80,142

未摊销债务发行成本	(32,405)			(38,076)
债务总额	5,172,948			5,139,817
减：长期债务的流动部分	(195,060)			(56,847)
长期债务总额	$	4,977,888			$	5,082,970

截至2026年9月 30日的债务流动部分包括未来一年内到期的7.50% 2027年4月到期优先票据、定期贷款、抵押票据及其他债务和融资租赁款项，以及预计将在未来十二个月内确认的未摊销债务发行成本部分。本公司认为，现有流动性足以偿付这些债务，并且能够继续进入债务资本市场。

截至2026年9月 30日和2025年12月 31日，我们的债务总额中约有79%采用固定利率。

加权平均利率的构成如下：


	2026年9月30日		2025年12月31日
固定利率债务	4.67	%		4.67	%
浮动利率债务	5.68	%		5.54	%
债务总额	4.88	%		4.85	%

截至2026年和2025年9月30日的九个月内，我们分别支付了1.629亿美元和1.595亿美元的现金利息。

银行信贷协议

银行信贷协议在需要时为我们提供营运资金灵活性，并由我们大多数国内子公司提供担保。子公司担保涵盖未偿还的总贷款承诺额（包括信用证）的偿付。银行信贷协议包含最高杠杆率财务契约以及某些股息和股票回购限制。截至2026年9月30日，我们遵守了所有债务契约。在截至2026年9月30日的九个月内，我们结清了与可再生能源税收抵免投资相关且已全额出资的4,600万美元信用证。此举部分被新开立的净额30万美元信用证所抵消。截至2026年9月30日，我们开立了130万美元信用证，并按未使用额度支付季度费用，费率为0.20%。截至2026年9月30日，我们在该授信额度下有1,513.7百万美元的借款能力。银行信贷协议在2026年9月30日和2025年12月31日的利率分别为5.65%和5.44%。截至2025年12月31日，我们有4,700万美元未偿信用证。

20 Service Corporation International

第一部分

债务发行与新增

截至2026年9月30日的九个月内，我们发行或新增了5.861亿美元债务，包括：

•5.300亿美元，来自于2030年11月到期的银行信贷额度；以及

•5,610万美元，来自于2037年2月到期的公司总部债务额度。

所得净款项用于一般公司用途及新公司总部的建设资金。

截至2025年9月30日的九个月内，我们发行或新增了6.885亿美元债务，包括：

•6.550亿美元，来自于2028年1月到期的银行信贷额度；以及

•3,350万美元，来自于2037年2月到期的公司总部债务额度。

所得净款项用于一般公司用途及新公司总部的建设资金。

债务偿还

截至2026年9月30日的九个月内，我们为按期偿还和提前偿还债务支付了总计5.707亿美元，包括：

•偿还2030年11月到期的银行信贷额度本金总额5.500亿美元；

•偿还2030年11月到期的定期贷款本金总额1,410万美元；以及

•偿还其他债务660万美元。

截至2025年9月30日的九个月内，我们为按期偿还和提前偿还债务支付了总计5.092亿美元，包括：

•偿还2028年1月到期的银行信贷额度本金总额4.900亿美元；

•偿还2028年1月到期的定期贷款本金总额1,270万美元；以及

•偿还其他债务650万美元。

10-Q表格 21

第一部分

6. 信用风险与金融工具公允价值

公允价值估算

The fair value estimates of the following financial instruments have been determined using available market information and appropriate valuation methodologies. The carrying values of cash and cash equivalents, trade receivables, and trade payables approximate the fair values of those instruments due to the short-term nature of the instruments. The carrying values of receivables on preneed funeral and cemetery contracts approximate fair value as the terms and conditions of these contracts are comparable to our current contract offerings.

The fair value of our debt instruments was as follows:


	September 30, 2026		December 31, 2025
	(In thousands)
7.500% Senior Notes due April 2027	$	138,043			$	141,725
4.625% Senior Notes due December 2027	544,087			549,417
5.125% Senior Notes due June 2029	731,062			755,040
3.375% Senior Notes due August 2030	767,049			796,815
4.000% Senior Notes due May 2031	725,776			763,592
5.750% Senior Notes due October 2032	770,896			815,416
Term Loan due November 2030	735,938			750,000
Bank Credit Facility due November 2030	235,000			255,000
Corporate Headquarters Debt Facility due February 2037	110,852			54,766
Mortgage notes and other debt, maturities through 2050	74,514			80,762
Total fair value of debt instruments	$	4,833,217			$	4,962,533

The fair values of our long-term, fixed-rate loans were estimated using market prices for those loans, and therefore they are classified within Level 2 of the fair value measurements hierarchy. The Term Loan, Bank Credit Facility, Corporate Headquarters Debt Facility, and the mortgage notes and other debt are classified within Level 3 of the fair value measurements hierarchy. The fair values of these instruments have been estimated using discounted cash flow analysis based on our incremental borrowing rate for similar borrowing arrangements. An increase (decrease) in the inputs results in a directionally opposite change in the fair value of the instruments.

7. Equity

(All shares reported in whole numbers)

Share Repurchase Program

Subject to market conditions, normal trading restrictions, and limitations in our debt covenants, we may make purchases of our common stock in the open market or through privately negotiated transactions under our share repurchase program. On June 11, 2026, we announced that our Board of Directors increased the authorized level of repurchases of our common stock by approximately $472.0 million.

During the nine months ended September 30, 2026, we repurchased 4,009,333 shares of common stock at an aggregate cost of $317.6 million, which is an average cost per share of $79.22. The remaining dollar value of shares authorized to be purchased under the share repurchase program was $498.8 million at September 30, 2026.

Subsequent to September 30, 2026, we repurchased 232,968 shares for $18.2 million at an average cost per share of $78.21.

22 Service Corporation International

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8. Segment Reporting

Our operations are both product-based and geographically-based, and the reportable operating segments presented below include our funeral and cemetery operations. Our geographic areas include the United States and Canada, where we conduct both funeral and cemetery operations.

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who is responsible for making key operating, finance, and capital allocation decisions and specifically uses segment gross profit to aid in the decision making and to assess the performance of the operating segments.

Our reportable segment information, including disaggregated revenue, was as follows and includes a reconciliation of gross profit to our consolidated income before income taxes.

FORM 10-Q 23

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	Three months ended September 30,		Nine months ended September 30,
	2026		2025		2026		2025
	(In thousands)
Revenue from customers:
Funeral revenue:
Atneed revenue	$	293,318			$	284,997		$	912,192	$	910,182
Matured preneed revenue	195,273			183,332			597,153		572,677
Core funeral revenue	488,591			468,329			1,509,345		1,482,859
Non-funeral home revenue	28,373			26,181			84,809		79,538
Non-funeral home preneed sales revenue	20,885			22,548			64,358		71,169
Core general agency and other revenue	64,767			57,005			179,492		171,356
Total funeral revenue	602,616			574,063			1,838,004		1,804,922
Direct cost	(84,892)			(82,099)			(260,361)		(259,882)
Selling compensation	(53,757)			(48,919)			(156,517)		(141,840)
Salaries & fringe expense	(176,867)			(167,098)			(519,852)		(502,413)
Facility expenses	(70,939)			(69,220)			(213,375)		(203,838)




Other costs and overhead	(111,240)			(107,128)			(338,714)		(327,395)
Total funeral expense	(497,695)			(474,464)			(1,488,819)		(1,435,368)
Funeral gross profit	$	104,921			$	99,599		$	349,185	$	369,554

Cemetery revenue:
Atneed revenue	$	106,457			$	107,503		$	326,266	$	330,823
Recognized preneed property revenue	231,750			228,609			666,790		637,690



Recognized preneed merchandise and services revenue	120,945			109,948			343,472		314,266
Core cemetery revenue	459,152			446,060			1,336,528		1,282,779
Other revenue	45,494			37,973			132,472		110,006
Total cemetery revenue	504,646			484,033			1,469,000		1,392,785
Direct cost	(66,937)			(63,549)			(191,305)		(188,571)
Selling compensation	(93,140)			(84,747)			(273,832)		(251,817)
Maintenance expense	(70,105)			(67,758)			(205,977)		(198,696)



Other costs and overhead	(107,112)			(102,035)			(314,846)		(294,857)
Total cemetery expense	(337,294)			(318,089)			(985,960)		(933,941)
Cemetery gross profit	$	167,352			$	165,944		$	483,040	$	458,844

Total revenue from customers	$	1,107,262			$	1,058,096		$	3,307,004	$	3,197,707
Total segment expenses	(834,989)			(792,553)			(2,474,779)		(2,369,309)
Gross profit from reportable segments	$	272,273			$	265,543		$	832,225	$	828,398
Corporate general and administrative expenses	(30,593)			(38,332)			(116,279)		(132,499)
Restructuring charge	—			(405)			—		(1,980)
Gains (losses) on divestitures and impairment charges, net	11,210			(415)			12,346		8,618

Operating income	$	252,890			$	226,391		$	728,292	$	702,537
Interest expense	(64,993)			(65,683)			(193,710)		(191,237)

Other income, net	902			153			2,243		7,219
Income before income taxes	$	188,799			$	160,861		$	536,825	$	518,519

24 Service Corporation International

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Our geographic area information was as follows:


	United States		Canada		Total
	(In thousands)
Three months ended September 30,
Revenue from external customers:
2026	$	1,059,498			$	47,764		$	1,107,262
2025	1,010,103			47,993			1,058,096
Nine months ended September 30,
Revenue from external customers:
2026	$	3,148,755			$	158,249		$	3,307,004
2025	3,039,956			157,751			3,197,707

9. Commitments and Contingencies

Insurance Loss Reserves

We purchase various insurance products with high deductibles including: comprehensive general liability, morticians and cemetery professional liability, automobile liability, and workers’ compensation. The high-deductible insurance program means we are primarily self-insured for claims and associated costs and losses covered by these policies. As of September 30, 2026 and December 31, 2025, we had self-insurance reserves of $113.5 million and $108.4 million, respectively.

Litigation and Regulatory Matters

We are a party to various litigation and regulatory matters, investigations, and proceedings. Some of the more frequent routine litigation matters incidental to our business are based on operational claims and employment-related matters, including discrimination, harassment, and wage and hour laws and regulations. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome. We vigorously defend ourselves in all matters; however, if we determine that an unfavorable outcome is probable and can be reasonably estimated, or if we determine an amount for which we would be willing to settle the matter to avoid further costs and risk, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of these matters. We accrue such insurance recoveries when they become probable of being paid and can be reasonably estimated.

Unclaimed Property Audits

We have received notices from auditors representing the unclaimed property departments of approximately forty states regarding the potential escheatment of preneed trust funds associated with unused preneed funeral and cemetery contracts (\"Unused Preneed Trust Funds\"). The states generally assert that all or a portion of these Unused Preneed Trust Funds may be subject to applicable unclaimed property or escheatment laws if the beneficiary and/or purchaser is deceased or presumed deceased and no merchandise or services have been provided. To date, audits have been resolved in nineteen states, with no additional property required to be reported. The remaining state audits are in various stages of the audit process.

Aside from these formal property audits, we may periodically review contracts to identify amounts that may be reportable under applicable unclaimed property laws. In limited circumstances, applicable laws permit us to retain trust earnings when property is escheated. As a result, our unclaimed property reporting has generated net trust fund income in each year from 2023 through 2026 as contracts are canceled and escheated.

We have reserved all of our rights, claims, and defenses with respect to these matters. Given the nature of the audits and the varying state laws involved, we are unable to reasonably estimate the total possible loss or range of loss, if any.

10. Earnings Per Share

Basic earnings per common share (EPS) excludes dilution and is computed by dividing Net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share

FORM 10-Q 25

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reflects the potential dilution that could occur if securities or other obligations to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in our earnings.

A reconciliation of the numerators and denominators of basic and diluted EPS is presented below:


	Three months ended September 30,	Nine months ended September 30,
	2026		2025	2026		2025
	(In thousands, except per share amounts)
Amounts attributable to common stockholders:







Net income — basic and diluted	$	141,276			$	117,473	$	401,909	$	383,218
Weighted average shares:
Weighted average shares — basic	136,439			140,318		137,652		142,097
Stock options	730			1,045		780		1,073
Restricted share units	57		61	52		57

Weighted average shares — diluted	137,226		141,424	138,484		143,227
Amounts attributable to common stockholders:






Earnings per share:
Basic	$	1.04			$	0.84	$	2.92	$	2.70
Diluted	$	1.03			$	0.83	$	2.90	$	2.68

The computation of diluted EPS excludes outstanding stock options and restricted share units in certain periods in which the inclusion of such equity awards would be antidilutive to the periods presented. Total antidilutive options not currently included in the computation of diluted earnings per share are as follows (in shares):


	Three months ended September 30,	Nine months ended September 30,
	2026		2025	2026	2025
	(In thousands)

Antidilutive options	696			331	632	623

26 Service Corporation International

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Company

We are North America’s largest provider of deathcare products and services, with a network of funeral service locations and cemeteries unequaled in geographic scale and reach. At September 30, 2026, we operated 1,491 funeral service locations and 506 cemeteries (including 317 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Our funeral and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. We strive to offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves approximately 700,000 combined preneed and atneed families each year with professionalism, compassion, and attention to detail.

Our financial position is enhanced by our $17.7 billion backlog of future revenue from both trust and insurance-funded preneed sales at September 30, 2026. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for revenue recognition to the extent that the property is developed and available for use.

We believe we have adequate liquidity and a favorable debt maturity profile, which allow us to reinvest and grow our business as well as return capital to shareholders through share repurchases and dividends.

Factors affecting our operating results include: demographic trends in terms of population growth and average age, which impact death rates; establishing and maintaining leading market share positions supported by strong local heritage and relationships; effectively responding to increasing cremation trends by selling complementary services and merchandise; controlling salary and merchandise costs; and exercising pricing leverage. The average revenue per funeral contract is influenced by the mix of traditional versus cremation services as our average revenue for cremations is lower than that for traditional burials. To further enhance revenue opportunities, we continue to focus on our cremation customers' preferences, and remaining relevant by developing additional cemetery property, memorialization merchandise and services that specifically appeal to cremation customers. We believe the presentation of these additional offerings through our customer-facing technology improves our customers' experience by allowing them to visualize the enhanced product and service offerings. In addition, we believe this will help drive increases in the average revenue for a cremation or incremental cemetery property sales in future periods. While general 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.

For further discussion of our key operating metrics, see our \"Cash Flow\" and “Results of Operations” sections below.

Financial Condition, Liquidity, and Capital Resources

We have adequate liquidity and a favorable debt maturity profile, which allow us to reinvest and grow our business as well as return capital to shareholders through share repurchases and dividends.

Capital Allocation Considerations

We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $869.3 million in the first nine months of 2026. As of September 30, 2026, we had $1,513.7 million in remaining borrowing capacity under our Bank Credit Facility.

Our Bank Credit Facility requires us to maintain a certain leverage ratio with which we were in compliance at September 30, 2026. We target a leverage ratio of 3.5x to 4.0x.

Our financial covenant requirement and actual ratio as of September 30, 2026 were as follows:


	Per Credit Agreement	Actual
Leverage ratio	5.00 (Max)	3.69

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.

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Our unencumbered cash on hand, future operating cash flows, and the available capacity under our Bank Credit Facilities 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.

We consistently evaluate the best uses of our cash flow that will yield the highest value and return on capital. Our capital investment strategy is prioritized as follows:

Investing in Acquisitions and Building New Funeral Service and Cemetery Locations. We manage our footprint by focusing on strategic acquisitions and building new funeral service and cemetery 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 continue to pursue strategic acquisitions and build new funeral service and cemetery locations in areas that provide us with the potential for additional scale.

Returning Excess Cash to Shareholders. In addition to any strategic acquisitions or new build opportunities, we continue to return cash to shareholders through regular quarterly dividends and our share repurchase program. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.36 per common share in the third quarter of 2026. 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. While we intend to pay regular quarterly cash dividends for the foreseeable future, all future dividends are subject to limitations in our debt covenants, and final determination by our Board of Directors each quarter upon review of our financial performance. We also expect to continue to repurchase shares of our common stock in the open market or through privately negotiated transactions, subject to market conditions, debt covenants, and normal trading restrictions. On June 11, 2026, we announced that our Board of Directors increased the authorized level of repurchases of our common stock by approximately $472 million. There can be no assurance that we will buy our common stock under our repurchase program in the future. During the nine months ended September 30, 2026, we repurchased 4,009,333 shares of our common stock at an aggregate cost of $317.6 million, which is an average cost per share of $79.22.

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. This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so.

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.

Operating Activities

Net cash provided by operating activities was $869.3 million and $729.9 million for the nine months ended September 30, 2026 and 2025, respectively. The $139.4 million increase in operating cash flows from 2025 comprises:

•a $133.4 million increase in cash receipts from customers, General Agency (GA) commission and other receipts,

•a $49.0 million decrease in cash tax payments,

•a $20.8 million decrease in restructuring payments, and

•a $1.7 million increase in net trust withdrawals, partially offset by

•a $34.1 million increase in employee compensation payments,

•a $28.0 million increase in vendor and other payments, and

•a $3.4 million increase in cash interest payments.

Investing Activities

Net cash flows used in investing activities was $470.1 million and $341.4 million for the nine months ended September 30, 2026 and 2025, respectively. The $128.7 million increased outflow in 2026 over 2025 is primarily due to the following:

•a $39.3 million increase in tax credit equity investments,

•a $27.5 million increase in capital expenditures related to construction of our new corporate headquarters which is substantially financed through a separate construction loan facility,

•a $12.2 million increase in total capital expenditures, which comprises:

•a $7.8 million increase in expenditures for growth capital expenditures/construction of new funeral service locations, and

•a $4.4 million net increase in maintenance capital expenditures, which includes:

28 Service Corporation International

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•a $6.5 million increase in expenditures for cemetery property development, and

•a $2.0 million increase in expenditures for digital investments and corporate, partially offset by

•a $4.1 million decrease in expenditures for capital improvements at existing field locations,

•an $11.4 million decrease in proceeds from Company-owned life insurance policies,

•a $10.6 million increase in payments for Company-owned life insurance policies,

•a $9.9 million increase in cash spent on real estate acquisitions,

•a $9.6 million decrease in cash receipts from divestitures and asset sales, and

•an $8.2 million increase in cash spent on business acquisitions.

Financing Activities

Net cash used in financing activities was $467.1 million and $368.9 million for the nine months ended September 30, 2026 and 2025, respectively. The $98.2 million increased outflow in 2026 over 2025 is primarily due to the following:

•a $188.1 million increase in payments of debt, as we moved from net borrowings of $117.3 million in 2025 to net repayments of $70.7 million in 2026,

•a $9.4 million increase in payments of dividends, and

•a $9.0 million increase in bank overdrafts and other, partially offset by

•an $83.2 million decrease in purchase of Company common stock,

•a $22.6 million increase in borrowings from our corporate headquarters debt facility, and

•a $2.5 million increase in proceeds from exercises of stock options.

Financial Assurances

In support of our operations, we have entered into arrangements with certain surety companies whereby such companies agree to issue surety bonds on our behalf as financial assurance and/or as required by existing state and local regulations. The surety bonds are used for various business purposes; however, the majority of the surety bonds issued and outstanding have been used to support our preneed sales activities. The obligations underlying these surety bonds are recorded on our unaudited Condensed Consolidated Balance Sheet as Deferred revenue, net. The breakdown of surety bonds between funeral and cemetery preneed arrangements, as well as surety bonds for other activities, is described below.


	September 30, 2026		December 31, 2025
	(In millions)
Preneed funeral	$	211.8			$	209.2
Preneed cemetery:
Merchandise and services	134.9			134.9
Pre-construction	64.7			64.5
Bonds supporting preneed funeral and cemetery obligations	411.4			408.6
Bonds supporting preneed business permits	9.2			8.7
Other bonds	77.7			76.5
Total surety bonds outstanding	$	498.3			$	493.8

When selling preneed contracts, we may post surety bonds where allowed by state law. We post the surety bonds in lieu of trusting a certain amount of funds received from the customer. The amount of the bond posted is generally determined by the total amount of the preneed contract that would otherwise be required to be trusted, in accordance with applicable state law.

Surety bond premiums are paid annually and the bonds are automatically renewable until maturity of the underlying preneed contracts, unless we are given prior notice of cancellation.

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Except for cemetery pre-construction bonds (which are irrevocable), the surety companies generally have the right to cancel the surety bonds at any time with appropriate notice. In the event a surety company were to cancel the surety bond, we are required to obtain replacement surety assurance from another surety company or fund a trust for an amount generally less than the posted bond amount. Management does not expect that we will be required to fund material amounts related to these surety bonds in the future due to a lack of surety capacity or surety company non-performance.

During the second quarter of 2025, we replaced our letters of credit with a $46.0 million surety bond and a related indemnity obligation with a large insurance company, which is included in Other bonds in the table above.

Preneed Activities and Backlog of Contracts

In addition to selling our products and services to client families at the time of need, we enter into price-guaranteed preneed contracts, which provide for future funeral or cemetery merchandise and services. Because preneed funeral and cemetery merchandise or services will generally not be provided until sometime in the future, most states and provinces require that all or a portion of the funds collected from customers on preneed contracts be deposited into merchandise and service trusts until the merchandise is delivered or the service is performed. 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.

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. These general agency commissions (GA revenue) are based on a percentage per contract sold and are recognized as funeral revenue when the insurance purchase transaction between the preneed purchaser and third-party insurance provider is completed. All selling costs incurred pursuant to the sale of insurance-funded preneed contracts are expensed as incurred. We do not reflect the unfulfilled insurance and other funded preneed contract amounts in our unaudited Condensed Consolidated Balance Sheet. The proceeds of the life insurance policies or annuity contracts will be reflected in funeral revenue as we perform these funerals. In addition, we have shifted our non-funeral home preneed sales production strategy from trust to insurance-funded contracts.

The table below details our results of insurance-funded and other non-insurance funded third-party preneed production and maturities.


	Three months ended September 30,		Nine months ended September 30,
	2026		2025		2026		2025
	(Dollars in millions)
Preneed insurance-funded:
Sales production(1)	$	233.2			$	214.3		$	679.2	$	603.3
Sales production (number of contracts)(1)	45,164			41,617			133,814		118,797
General agency revenue	$	77.5			$	75.9		$	223.1	$	221.6
Maturities	$	100.8			$	95.5		$	312.6	$	303.4
Maturities (number of contracts)	15,950			15,438			49,802		48,944

Other non-insurance funded third-party:
Sales production(1)	$	11.7			$	11.1		$	36.1	$	31.0
Sales production (number of contracts)(1)	1,191			1,109			3,555		3,206
Maturities	$	7.4			$	7.2		$	23.1	$	22.7
Maturities (number of contracts)	770			704			2,377		2,297

(1) Amounts are not included in our unaudited Condensed Consolidated Balance Sheet.

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. Although this represents cash flow to us, the associated revenues are deferred until the merchandise is delivered or services are performed (typically at maturity). The funds in trust are then invested by professional money managers with oversight by independent trustees in accordance with state and provincial laws. As discussed above in Insurance and Other Funded Preneed Contracts, we have shifted our non-funeral home preneed sales production strategy from trust to insurance-funded contracts.

30 Service Corporation International

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The tables below detail our results of preneed production and maturities, excluding insurance contracts:


	Three months ended September 30,		Nine months ended September 30,
	2026		2025		2026		2025
	(Dollars in millions)
Funeral:
Preneed trust-funded (including bonded):
Sales production	$	85.4			$	80.5		$	252.7	$	262.8
Sales production (number of contracts)	13,379			12,775			39,065		45,226
Maturities	$	107.1			$	97.8		$	320.6	$	298.1
Maturities (number of contracts)	20,641			20,206			63,199		63,421
Cemetery:
Sales production:
Preneed	$	370.2			$	352.3		$	1,126.9	$	1,046.7
Atneed	105.4			104.9			325.3		326.6
Total sales production	$	475.6			$	457.2		$	1,452.2	$	1,373.3
Sales production deferred to backlog:
Preneed	$	194.9			$	188.3		$	579.9	$	521.8
Atneed	72.6			73.4			225.9		228.1
Total sales production deferred to backlog	$	267.5			$	261.7		$	805.8	$	749.9
Revenue recognized from backlog:
Preneed	$	141.5			$	135.5		$	371.8	$	345.8
Atneed	73.3			75.4			226.0		230.3
Total revenue recognized from backlog	$	214.8			$	210.9		$	597.8	$	576.1

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 September 30, 2026 and December 31, 2025. 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 unaudited Condensed Consolidated Balance Sheet) at September 30, 2026 and December 31, 2025. 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. 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 below is meaningful because it sets forth the aggregate amount of future revenue we expect to recognize as a result of preneed sales, as well as the amount of funds associated with this revenue. Because the future revenue exceeds the assets, future revenue will exceed the cash distributions actually received from the associated trusts and future collections from the customer.

FORM 10-Q 31

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	September 30, 2026		December 31, 2025
	Fair Value		Cost		Fair Value		Cost
	(In billions)
Deferred revenue, net	$	1.82			$	1.82		$	1.78	$	1.78
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts	1.00			1.00			1.01		1.01
Deferred receipts held in trust	6.05			5.13			5.78		4.83
Allowance for cancellation on trust investments	(0.30)			(0.26)			(0.29)		(0.24)
Backlog of trust-funded deferred revenue, net of estimated allowance for cancellation	8.57			7.69			8.28		7.38
Backlog of insurance and other funded deferred revenue(1)	9.15			9.15			8.73		8.73
Total backlog of deferred revenue	$	17.72			$	16.84		$	17.01	$	16.11

Preneed receivables, net and trust investments	$	7.59			$	6.67		$	7.36	$	6.41
Amounts due from customers for unfulfilled performance obligations on cancelable preneed contracts	1.00			1.00			1.01		1.01
Allowance for cancellation on trust investments	(0.30)			(0.26)			(0.29)		(0.24)
Assets associated with backlog of trust-funded deferred revenue, net of estimated allowance for cancellation	8.29			7.41			8.08		7.18
Policies associated with insurance and other funded deferred revenue (1)	9.15			9.15			8.73		8.73
Total assets associated with backlog of preneed revenue	$	17.44			$	16.56		$	16.81	$	15.91

(1) Amounts are not included in our unaudited Condensed Consolidated Balance Sheet.

The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of September 30, 2026, the difference between the backlog and total assets at fair value represents $0.16 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.45 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 $1.53 billion in amounts due on delivered property and merchandise. As of September 30, 2026, the fair value of the total backlog comprised $5.31 billion related to cemetery contracts and $12.41 billion related to funeral contracts. As of September 30, 2026, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $5.31 billion related to cemetery contracts and $2.98 billion related to funeral contracts. As of September 30, 2026, the backlog of insurance-funded contracts of $9.15 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.

Trust Investments

In addition to selling our products and services to client families at the time of need, we also enter into price-guaranteed preneed funeral and cemetery contracts, which provide for future funeral or cemetery merchandise and services. Since preneed funeral and cemetery merchandise or services will generally not be provided until sometime in the future, most states and provinces require that all or a portion of the funds collected from customers on preneed funeral and cemetery contracts be paid into trusts and/or escrow accounts until the merchandise is delivered or the service is performed. Investment earnings associated with the trust investments are expected to mitigate the inflationary costs of providing the preneed funeral and cemetery merchandise and services in the future at the prices that were guaranteed at the time of sale. Also, we are required by state and provincial law to pay a portion of the proceeds from the preneed or atneed sale of cemetery property interment rights into perpetual care trusts. For these investments, the original corpus generally remains in the trust in perpetuity and the earnings or elected distributions are withdrawn as allowed to defray the expenses to maintain the cemetery property. While many states require that net capital gains or losses be retained and added to the corpus, certain states allow the net realized capital gains and losses to be included in the earnings that are distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.

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. 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

32 Service Corporation International

PART I

state and provincial guidelines. All of the trusts are intended to control risk and volatility through a combination of asset classes, investment styles, and a diverse mix of investment managers.

Asset allocation is based on the liability structure of each funeral, cemetery, and perpetual care trust. Based on the various criteria set forth in the investment policy, the investment advisor recommends investment managers to the trustees. The primary investment objectives for the funeral and cemetery merchandise and service trusts include 1) preserving capital within acceptable levels of volatility and risk and 2) achieving growth of principal over time sufficient to preserve and increase the purchasing power of the assets. Preneed funeral and cemetery contracts generally take several years to mature; therefore, the funds associated with these contracts are often invested through several market cycles.

Where allowed by state and provincial regulations, the cemetery perpetual care trusts’ primary investment objectives are growth-oriented to provide for a fixed distribution rate from the trusts’ assets. Where such distributions are limited to ordinary income, the cemetery perpetual care trusts’ investment objectives emphasize providing a steady stream of current investment income with some capital appreciation. Both types of distributions are used to provide for the current and future maintenance and beautification of the cemetery properties.

As of September 30, 2026, approximately 96% of our trusts were under the control and custody of five large financial institutions. The U.S. trustees primarily use five managed limited liability companies (LLCs), three for the merchandise and service trust type and two for the cemetery perpetual care trust type, with independent trustees as custodians. Each financial institution acting as trustee, manages its allocation of trust assets in accordance with the investment policy through the purchase of the appropriate LLCs' units. For those accounts not eligible for participation in the LLCs or where a particular state's regulations contain other investment restrictions, the trustee utilizes institutional mutual funds that comply with our investment policy or with such state restrictions. The U.S. trusts include a modest allocation to alternative investments. These alternative investments are held in vehicles structured as LLCs and are managed by certain trustees. The trusts that are eligible to allocate a portion of their investments to alternative investments purchase units of the respective alternative investment LLCs.

Investment Structures

The managed LLCs use the following structures for investments:

Commingled funds allow the trusts to access, at a reduced cost, some of the same investment managers and strategies used elsewhere in the portfolios.

Separately managed accounts are trusts that utilize separately managed accounts, where appropriate, to reduce the costs to the investment portfolios.

Mutual funds employ institutional share class mutual funds where operationally or economically efficient. These mutual funds are utilized to invest in various asset classes including U.S. equities, non-U.S. equities, corporate bonds, government bonds, high yield bonds, and commodities, all of which are governed by guidelines outlined in their individual prospectuses.

Asset Classes

Equity investments have historically provided long-term capital appreciation in excess of inflation. The trusts have direct investments in individual equity securities primarily in domestic equity portfolios that include large, mid, and small capitalization companies of different investment styles (i.e., growth and value). 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 September 30, 2026, the largest single equity position represented approximately 1.3% of the total securities portfolio.

Fixed income investments are intended to preserve principal, provide a source of current income, and reduce overall portfolio volatility. The majority of the fixed income allocation for the trusts is invested in institutional share class mutual funds. Where the trusts have direct investments in individual fixed income securities, these are primarily in government and corporate instruments.

Canadian government fixed income securities are investments in Canadian federal and provincial government instruments. In many cases, regulatory restrictions mandate that the funds from the sales of preneed funeral and cemetery contracts sold in certain Canadian jurisdictions must be invested in these instruments.

Alternative investments serve to provide high rates of return with reduced volatility and lower correlation to publicly-traded securities. These investments are typically longer term in duration and are diversified by strategy, sector, manager, geography, and vintage year. The investments consist of numerous limited partnerships invested in private equity, private market real estate, energy and natural resources, infrastructure, transportation, and private debt including both distressed debt and mezzanine financing. The trustees that have oversight of their respective alternative LLCs work closely with the investment advisor in making all investment decisions.

FORM 10-Q 33

PART I

Trust Performance

During the nine months ended September 30, 2026, the Standard and Poor’s 500 Index increased 12.8% and the Bloomberg’s US Aggregate Bond Index decreased 2.9%. This compares to the SCI trusts that increased 6.2% during the same period. The SCI trusts have a diversified allocation of approximately 60% equities, 26% fixed income securities, 10% alternative and other investments with the remaining 4% available in money market funds.

Recognized trust fund income (realized and unrealized) related to our preneed trust investments was $181.6 million and $146.9 million for the nine months ended September 30, 2026 and 2025, respectively. Recognized trust fund income (realized and unrealized) related to our cemetery perpetual care trust investments was $99.1 million and $80.8 million for the nine months ended September 30, 2026 and 2025, respectively.

SCI, the trustees, and the investment advisor monitor the capital markets and the trusts on an on-going basis. The trustees, with input from the investment advisor, take prudent action as needed to achieve the investment goals and objectives of the trusts.

Results of Operations — Three and Nine months ended September 30, 2026 and 2025

Three Months Ended September 30, 2026 and 2025

Management Summary

In the third quarter of 2026, we reported consolidated net income attributable to common stockholders of $141.3 million ($1.03 per diluted share) compared to net income attributable to common stockholders in the third quarter of 2025 of $117.5 million ($0.83 per diluted share). These results were impacted by certain items including:


	Three months ended September 30,
	2026		2025
	(In millions)
Pre-tax gains (losses) on divestitures and impairment charges, net	$	11.2		$	(0.4)





Pre-tax restructuring charge	$	—		$	(0.4)

Tax effect from significant items	$	(2.7)		$	0.1
Change in non-recurring tax items	$	0.2		$	(4.5)

In addition to the above items, the increase was due to higher funeral and cemetery gross profit combined with lower corporate general and administrative expenses and a lower share count over prior-year quarter. This increase was offset by higher healthcare costs, selling compensation, and costs associated with targeted sales initiatives supporting our higher preneed production.

34 Service Corporation International

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Funeral Results


	Three months ended September 30,
	2026		2025
	(Dollars in millions, except average revenue per service)
Consolidated funeral revenue	$	602.6			$	574.1
Less: revenue associated with acquisitions/new construction	14.2			3.5
Less: revenue associated with divestitures	0.2			1.1
Comparable(1) funeral revenue	588.2			569.5
Less: non-funeral home preneed sales revenue	20.7			22.4
Less: core general agency and other revenue	63.8			56.7
Adjusted comparable funeral revenue	$	503.7			$	490.4
Comparable services performed	83,638			83,686
Comparable average revenue per service(2)	$	6,022			$	5,860

Consolidated funeral gross profit	$	104.9			$	99.6
Less: gross profit associated with acquisitions/new construction	1.6			—
Less: gross losses associated with divestitures	(0.5)			(0.6)
Comparable(1) funeral gross profit	$	103.8			$	100.2

(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2025 and ending September 30, 2026.

(2) We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, non-funeral home preneed sales revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of funeral services performed during the period.

Funeral Revenue

Consolidated revenue from funeral operations was $602.6 million for the three months ended September 30, 2026 compared to $574.1 million for the same period in 2025. This $28.5 million increase is primarily attributable to an $18.7 million increase in comparable revenue and a $10.7 million increase in revenue from acquired and newly constructed properties, partially offset by a $0.9 million decrease in revenue associated with divested properties.

Comparable revenue from funeral operations was $588.2 million for the three months ended September 30, 2026 compared to $569.5 million for the same period in 2025. This $18.7 million, or 3.3%, increase was due to a $13.3 million increase in adjusted comparable funeral revenue and a $7.1 million increase in core general agency and other revenue, partially offset by a $1.7 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $13.3 million due to a 2.8% increase in comparable average revenue per service, partially offset by a 0.1% decrease in comparable funeral services performed. The total comparable cremation rate increased by 60 basis points to 65.0%.

Non-funeral home preneed sales revenue decreased $1.7 million, primarily due to a reduction in general agency revenue. While non-funeral home insurance sales production increased 9.3%, a lower general agency commission rate impacted revenue quarter over quarter.

Core general agency and other revenue grew $7.1 million. Core general agency revenue benefited from higher insurance sales production partially offset by a slightly lower general agency commission rate quarter over quarter. The current commission rate is generally stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit increased $5.3 million, or 5.3%, for the three months ended September 30, 2026 compared to the same period in 2025, primarily attributable to a $3.6 million, or 3.6%, increase in comparable funeral gross profit and a $1.6 million increase in gross profit contributed by newly constructed and acquired properties. Comparable funeral gross profit increased from $100.2 million to $103.8 million, and the comparable gross profit percentage was 17.6% in both periods. Comparable funeral revenue increased $18.7 million which was partially offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. In addition, we experienced an increase in health insurance expense.

FORM 10-Q 35

PART I

Cemetery Results


	Three months ended September 30,
	2026		2025
	(In millions)
Consolidated cemetery revenue	$	504.6			$	484.0
Less: revenue associated with acquisitions/new construction	1.2			—

Comparable(1) cemetery revenue	$	503.4			$	484.0

Consolidated cemetery gross profit	$	167.4			$	165.9
Less: gross profit (losses) associated with acquisitions/new construction	0.3			(0.1)

Comparable(1) cemetery gross profit	$	167.1			$	166.0

(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2025 and ending September 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $20.6 million, or 4.3%, for the three months ended September 30, 2026 compared to the same period in 2025 primarily due to a $19.4 million increase in comparable cemetery revenue and a $1.2 million increase in revenue contributed by newly constructed and acquired properties.

Comparable cemetery revenue increased $19.4 million, or 4.0%, for the three months ended September 30, 2026 primarily due to higher comparable core revenue of $11.9 million and higher comparable other revenue of $7.5 million. The comparable core revenue increase of $11.9 million was primarily due to a $13.6 million, or 4.0%, increase in total recognized preneed revenue from higher property and merchandise and service revenue. This includes the benefit of increased trust fund income. Additionally, recognized preneed cemetery property revenue grew 1.2%, while preneed property sales production increased 4.2%. This dynamic puts near-term pressure on cemetery gross margins but builds the backlog of revenue to be recognized in future periods.

Other revenue was $7.5 million, or 19.7%, higher compared to the prior-year quarter, primarily due to an increase in endowment care trust fund income based on market performance and higher total return distributions.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $1.5 million, or 0.9%, in the three months ended September 30, 2026 compared to the same period in 2025, which is primarily attributable to a $1.1 million increase in comparable cemetery gross profit. Comparable cemetery gross profit increased $1.1 million to $167.1 million. The gross profit percentage decreased from 34.3% to 33.2%. Comparable cemetery revenue increased $19.4 million which was largely offset by higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. Changes to our sales compensation structure, which increased guaranteed hourly wages, resulted in a higher selling compensation rate. In addition, this resulted in more selling costs being recognized in the current period rather than deferred, which will reduce selling compensation expense recognized in subsequent periods. We also experienced an increase in health insurance expense. While these elevated costs are pressuring cemetery gross margins, the growth in preneed sales production continues to strengthen our backlog with high quality deferred property, merchandise and service revenue, which will benefit future periods.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $7.7 million to $30.6 million in the third quarter of 2026 compared to the third quarter of 2025 of $38.3 million. The decrease was driven primarily by lower long-term incentive compensation expense tied to total shareholder return and a favorable legal settlement.

Gains (losses) on Divestitures and Impairment Charges, Net

Gains (losses) on divestitures and impairment charges, net increased to $11.2 million in the third quarter of 2026 due to non-strategic asset divestitures of excess land compared to a $0.4 million net pre-tax loss in the third quarter of 2025.

Interest Expense

Interest expense decreased $0.7 million to $65.0 million for the three months ended September 30, 2026 due to lower rates on floating rate debt more than offsetting higher balances.

FORM 10-Q 36

PART I

Provision for Income Taxes

Our effective tax rate was 25.1% and 26.9% for the three months ended September 30, 2026 and 2025, respectively. The higher effective tax rate in the prior period was primarily due to a change in estimate recorded in the prior year related to the finalization of the 2024 tax return. The effective tax rate was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign taxes.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 137.2 million for the three months ended September 30, 2026 compared to 141.4 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Nine Months Ended September 30, 2026 and 2025

Management Summary

In the first nine months of 2026, we reported consolidated net income attributable to common stockholders of $401.9 million ($2.90 per diluted share) compared to net income attributable to common stockholders for the same period in 2025 of $383.2 million ($2.68 per diluted share). These results were impacted by certain items including:


	Nine months ended September 30,
	2026		2025
	(In millions)
Pre-tax gains on divestitures and impairment charges, net	$	12.3		$	8.6




Pre-tax legal settlements	$	—		$	(6.4)
Pre-tax restructuring charge	$	—		$	(2.0)
Tax effect from significant items	$	(3.0)		$	(0.3)
Change in non-recurring tax items	$	(0.1)		$	(4.5)

In addition to the above items, lower funeral gross profit resulting from lower funeral volumes during the year was more than offset by higher cemetery gross profit combined with lower corporate general and administrative expenses, lower share count, and a favorable tax rate.

FORM 10-Q 37

PART I

Funeral Results


	Nine months ended September 30,
	2026		2025
	(Dollars in millions, except average revenue per service)
Consolidated funeral revenue	$	1,838.0			$	1,804.9
Less: revenue associated with acquisitions/new construction	36.2			6.3
Less: revenue associated with divestitures	0.9			4.0
Comparable(1) funeral revenue	1,800.9			1,794.6
Less: non-funeral home preneed sales revenue	63.9			70.9
Less: core general agency and other revenue	177.2			170.5
Adjusted comparable funeral revenue	$	1,559.8			$	1,553.2
Comparable services performed	260,225			267,327
Comparable average revenue per service(2)	$	5,994			$	5,810

Consolidated funeral gross profit	$	349.2			$	369.6
Less: gross profit (losses) associated with acquisitions/new construction	4.1			(0.3)
Less: gross losses associated with divestitures	(1.4)			(2.5)
Comparable(1) funeral gross profit	$	346.5			$	372.4

(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2025 and ending September 30, 2026.

Funeral Revenue

Consolidated revenue from funeral operations was $1,838.0 million for the nine months ended September 30, 2026, compared to $1,804.9 million for the same period in 2025. This $33.1 million increase in revenue is primarily attributable to a $29.9 million increase in revenue contributed by newly constructed and acquired properties and a $6.3 million increase in comparable revenue, partially offset by a $3.1 million decrease in revenue related to divested properties.

Comparable revenue from funeral operations was $1,800.9 million for the nine months ended September 30, 2026 compared to $1,794.6 million for the same period in 2025. The $6.3 million, or 0.4%, increase was due to a $6.7 million increase in core general agency and other revenue, a $6.6 million increase in adjusted comparable funeral revenue, both partially offset by a $7.0 million decrease in non-funeral home preneed sales revenue.

Adjusted comparable funeral revenue increased $6.6 million, or 0.4%, primarily due to a 3.2% increase in comparable average revenue per service, partially offset by a 2.7% decrease in comparable funeral services performed. The total comparable cremation rate slightly increased 70 basis points over the prior year to 64.9%.

Non-funeral home preneed sales revenue decreased $7.0 million, primarily due to an operational shift to defer the delivery of urns on preneed contracts to the time of need. This transition was completed late in 2025, and this decrease is short-term in nature as we will recognize deferred urn revenue from the backlog at the time of need as revenue in future periods. This can be seen as our comparable non-funeral home average revenue per service increased 9.0% over the prior year.

Core general agency and other revenue increased $6.7 million. Core general agency revenue benefited from higher insurance sales production partially offset by a lower general agency commission rate year over year. The current commission rate is generally stable and is trending in line with expectations.

Funeral Gross Profit

Consolidated funeral gross profit decreased $20.4 million, or 5.5%, in the first nine months of 2026 compared to the same period in 2025. This decrease is primarily attributable to a $25.9 million, or 7.0%, decrease in comparable funeral gross profit, partially offset by a $4.4 million increase in gross profit contributed by acquired and newly constructed properties and a $1.1 million increase in gross profit related to divested properties. Comparable funeral gross profit decreased $25.9 million to $346.5 million, and the comparable gross profit percentage declined from 20.8% to 19.2%. The decline primarily reflects lower funeral volumes, combined with increases in our fixed-cost operating structure. Higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production also contributed to the decline. In addition, we experienced an increase in health insurance expense.

FORM 10-Q 38

PART I

Cemetery Results


	Nine months ended September 30,
	2026		2025
	(In millions)
Consolidated cemetery revenue	$	1,469.0			$	1,392.8
Less: revenue associated with acquisitions/new construction	3.2			—
Less: revenue associated with divestitures	—			0.1
Comparable(1) cemetery revenue	$	1,465.8			$	1,392.7

Consolidated cemetery gross profit	$	483.0			$	458.8
Less: gross profit (loss) associated with acquisitions/new construction	1.3			(0.2)
Less: gross profit associated with divestitures	—			0.1
Comparable(1) cemetery gross profit	$	481.7			$	458.9

(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2025 and ending September 30, 2026.

Cemetery Revenue

Consolidated revenue from our cemetery operations increased $76.2 million, or 5.5%, in the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to a $73.1 million, or 5.2%, increase in comparable cemetery revenue and a $3.2 million increase in revenue contributed by acquired and newly constructed properties.

The $73.1 million increase in comparable cemetery revenue was attributable to a $51.5 million increase in comparable cemetery core revenue and an increase in other revenue of $21.6 million. The increase in core revenue was primarily due to a $57.3 million increase in recognized preneed revenue, partially offset by a $5.7 million decrease in atneed revenue. Additionally, recognized preneed cemetery property revenue grew 4.4%, while preneed property sales production increased 7.1%. This dynamic puts near-term pressure on cemetery gross margins but builds the backlog of revenue to be recognized in future periods.

Cemetery Gross Profit

Consolidated cemetery gross profit increased $24.2 million, or 5.3%, in the nine months ended September 30, 2026 compared to the same period in 2025. This increase is primarily attributable to a $22.8 million increase in comparable cemetery gross profit and a $1.5 million increase in gross profit contributed by newly constructed and acquired properties. Comparable cemetery gross profit increased from $458.9 million to $481.7 million, and the gross profit percentage slightly decreased from 33.0% to 32.9% primarily due to the growth in core revenue mentioned above, partially offset by the impact of higher selling compensation and higher advertising and marketing expenditures supporting preneed sales production. In addition, we experienced an increase in health insurance expense.

Other Financial Statement Items

Corporate General and Administrative Expenses

Corporate general and administrative expenses decreased $16.2 million to $116.3 million for the nine months ended September 30, 2026. Of the decrease, $6.4 million was due to the settlement of certain legal matters in prior year, with the remainder primarily due to favorable adjustments to self-insurance actuarial reserves for workers’ compensation, general liability and auto based on improved claims experience.

Gains (losses) on Divestitures and Impairment Charges, Net

Gains (losses) on divestitures and impairment charges, net increased to $12.3 million in the nine months ended September 30, 2026 due to non-strategic asset divestitures of excess land compared to an $8.6 million net pre-tax gain in the nine months ended September 30, 2025.

Interest Expense

Interest expense increased $2.5 million to $193.7 million for the nine months ended September 30, 2026 primarily due to higher average debt outstanding, partially offset by lower interest rates on our floating-rate debt. During the nine months ended September 30, 2026, our floating-rate debt carried a weighted average rate of 4.1%, which is over 230 basis points lower than the weighted average rate for our floating rate debt in the prior year.

FORM 10-Q 39

PART I

Other Income, Net

Other income, net decreased $5.0 million to $2.2 million for the nine months ended September 30, 2026 primarily due to the change in foreign currency exchange rates and lower investment income compared to the prior year.

Provision for Income Taxes

Our effective tax rate was 25.1% and 26.1% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the effective tax rate in the current period was primarily due to a change in estimate recorded in the prior year related to the finalization of the 2024 tax return. The effective tax rate was higher than the federal statutory tax rate of 21.0% primarily due to state and foreign taxes.

Weighted Average Shares

The diluted weighted average number of shares outstanding was 138.5 million for the nine months ended September 30, 2026 compared to 143.2 million for the same period in 2025. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.

Critical Accounting Policies, Recent Accounting Pronouncements, and Accounting Changes

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Although we base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances, actual results may differ from the estimates on which our financial statements are prepared at any given point of time. Changes in these estimates could materially affect our consolidated financial position, consolidated results of operations, or cash flows. Significant items that are subject to such estimates and assumptions include revenue and expense accruals, fair value of merchandise and perpetual care trust assets, and the allocation of purchase price to the fair value of assets acquired. Our critical accounting policies have not significantly changed since December 31, 2025 and are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

Recent Accounting Pronouncements and Accounting Changes

For discussion of recent accounting pronouncements and accounting changes, see Part I, Item 1. Financial Statements, Note 2 of this Form 10-Q.

Cautionary Statement on Forward-Looking Statements

The statements in this Form 10-Q that are not historical facts are forward-looking statements made in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as “believe”, “estimate”, “project”, “expect”, “anticipate”, or “predict” that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual consolidated results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. These factors are discussed below. Except as required by applicable law, we assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.

•Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.

•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.

•Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.

•We may be adversely affected by the effects of inflation.

•Our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises.

•Our credit agreements contain covenants that may prevent us from engaging in certain transactions.

•If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.

•The financial condition of third-party insurance companies that fund our preneed contracts may impact our future revenue.

FORM 10-Q 40

PART I

•Unfavorable publicity could affect our reputation and business.

•Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition.

•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.

•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 failure to protect personal information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.

•A failure of a key information technology system or process could disrupt and adversely affect our business.

•Our Canadian business exposes us to operational, economic, and currency risks.

•Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.

•The funeral and cemetery industry is competitive.

•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 we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.

•The continuing upward trend in life expectancy and an increase in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.

•Our funeral and cemetery businesses are high fixed-cost businesses.

•Risks associated with our supply chain, such as tariffs, could materially adversely affect our financial performance.

•Regulation and compliance could have a material adverse impact on our financial results.

•Unfavorable results of litigation could have a material adverse impact on our financial statements.

•Cemetery burial practice claims could have a material adverse impact on our financial results.

•The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.

•Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.

For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com.

FORM 10-Q 41

PART I

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market” risk refers to the risk of gains or losses arising from changes in interest rates and prices of marketable securities. The disclosures are not meant to be precise indicators of expected future gains or losses, but rather indicators of reasonably possible gains or losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk-sensitive instruments were entered into for purposes other than trading.

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.

Cost and market values as of September 30, 2026 are presented in Part I, Item 1. Financial Statements, Note 3 of this Form 10-Q. Also, see \"Trust Investments\" in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations \"Financial Condition, Liquidity, and Capital Resources\" section for discussion of trust investments.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 2026, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)). Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the Securities and Exchange Commission (SEC) reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time period specified by the SEC’s rules and forms and that such information is accumulated and communicated to management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. Based on our evaluation, our CEO and CFO have concluded that our disclosure controls and procedures are effective as of September 30, 2026 and that the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our consolidated financial condition, consolidated results of operations, and cash flows for the periods presented in conformity with US GAAP.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

42 Service Corporation International


PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings is set forth in Part I, Item 1. Financial Statements, Note 9 of this Form 10-Q, which information is hereby incorporated by reference herein.

Item 1A. Risk Factors

There have been no material changes in our Risk Factors as set forth in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes our share repurchases during the three months ended September 30, 2026:


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
July 1, 2026 — July 31, 2026 (1)	336,632		$	78.41			336,435	$	541,158,593
August 1, 2026 — August 31, 2026 (2)	122,337		$	83.78			121,704	$	530,909,964
September 1, 2026 — September 30, 2026 (3)	199,491		$	79.80			198,188	$	498,799,601
	658,460				656,327

(1) 197 shares were purchased in July 2026 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. These repurchases were not part of our publicly announced program and do not affect our share repurchase program.

(2) 633 shares were purchased in August 2026 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. These repurchases were not part of our publicly announced program and do not affect our share repurchase program.

(3) September 2026 includes a reduction to the approximate dollar value of shares that may yet be purchased under the program of approximately $16.4 million in connection with a return of shares from our deferred compensation plan. Additionally, 1,303 shares were purchased in September 2026 in connection with the surrender of shares by associates to satisfy certain tax withholding obligations under compensation plans. These repurchases were not part of our publicly announced program and do not affect our share repurchase program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a) Not applicable.

(b) Not applicable.

FORM 10-Q 43

PART II

(c) During the three months ended September 30, 2026, no director or officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits


Exhibit Number		Description
3.1	—	Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Registration Statement No. 333-10867 on Form S-3).
3.2	—	Articles of Amendment to Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Form 10-Q for the fiscal quarter ended September 30, 1996).
3.3	—	Certificate of Amendment to Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Form 8-K filed May 25, 2018).
3.4	—	Certificate of Amendment to Restated Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to Form 8-K filed May 8, 2026).
3.5	—	Statement of Resolution Establishing Series of Shares of Series D Junior Participating Preferred Stock, dated July 27, 1998 (Incorporated by reference to Exhibit 3.2 to Form 10-Q for the fiscal quarter ended June 30, 1998).
3.6	—	Bylaws of the Company (Incorporated by reference to Exhibit 3.2 to Form 8-K filed May 8, 2026).
4.1	—	Senior Indenture dated as of February 1, 1993 by and between the Company and The Bank of New York, as trustee (Incorporated by reference as Exhibit 4.1 to Form S-4 filed September 2, 2004 (File No. 333-118763)).
4.2	—	Agreement of Resignation, Appointment of Acceptance, dated December 12, 2005, among the Company, The Bank of New York and The Bank of New York Trust Company, N.A., appointing a successor trustee for the Senior Indenture dated as of February 1, 1993 (Incorporated by reference to Exhibit 4.1 to Form 10-Q for the fiscal quarter ended June 30, 2005).

10.1	—	2026 Equity Incentive Plan (Incorporated by reference to Exhibit 4.6 to Form S-8 filed May 11, 2026).




10.2	—	Credit Agreement, dated November 20, 2025, between Service Corporation International, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions, as lenders party thereto (Incorporated by reference to Exhibit 10.1 to Form 8-K filed November 21, 2025).
10.3	—	Deferred Compensation Plan 2026 as Amended and Restated Effective August 4, 2026.
31.1	—	Certification of Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	—	Certification of Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	—	Certification of Periodic Financial Reports by Thomas L. Ryan as Principal Executive Officer in satisfaction of Section 906 of the Sarbanes- Oxley Act of 2002.
32.2	—	Certification of Periodic Financial Reports by Eric D. Tanzberger as Principal Financial Officer in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002.
101	—	Interactive data file formatted Inline XBRL.
104	—	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

44 Service Corporation International

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


October 29, 2026	SERVICE CORPORATION INTERNATIONAL
	By:	/s/ TAMMY MOORE
		Tammy Moore Vice President and Chief Accounting Officer (Principal Accounting Officer)

FORM 10-Q 45

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