Carriage Services Q2 2025 Financial Results

Carriage Services, Inc. has released its financial results for the second quarter ending June 30, 2025. The company, a leading provider of funeral and cemetery services in the United States, reported significant growth in several key financial metrics, alongside strategic acquisitions and an updated full-year outlook.

Financial Highlights

For the second quarter of 2025, Carriage Services reported a GAAP net income growth of $5.5 million, or 85.7%, compared to the same period last year. The GAAP diluted earnings per share (EPS) was $0.74, reflecting an 85.0% increase from $0.40 in the prior year quarter. Adjusted diluted EPS also saw a rise to $0.74 from $0.63, marking a 17.5% growth.

Total revenue for the quarter was $102.1 million, slightly down from $102.3 million in the same period last year. However, the company experienced a 2.6% increase in total funeral consolidated revenue, driven by a 1.4% increase in average revenue per funeral contract.

For the six months ended June 30, 2025, total revenue grew by $3.4 million to $209.2 million, with a notable $4.4 million increase in consolidated funeral revenue, partially offset by a $1.0 million decline in consolidated cemetery revenue.

Business and Operational Highlights

Carriage Services reported a decrease in the number of preneed interment rights sold, with a 3.9% drop in the second quarter compared to the previous year. However, the average price per preneed interment right sold saw a slight decrease of 0.6%. The company also noted a 1.4% increase in the average revenue per funeral contract and a 0.8% decrease in funeral contract volume.

Despite these mixed results, the company managed to lower its leverage ratio to 4.2x from 4.6x, paying down $7.1 million of debt on its credit facility during the second quarter.

Strategic Initiatives and Corporate Developments

Carriage Services announced its return to growth through acquisitions, with contracts to acquire strategic businesses that generated over $15 million in revenue last year. These acquisitions are expected to close later this quarter. The company has also updated its full-year guidance to reflect current performance trends, divestitures, and acquisitions.

Management's Perspective

Carlos Quezada, Vice Chairman and CEO, expressed satisfaction with the company's second-quarter performance, highlighting the impressive GAAP net income growth and the successful execution of organic growth strategies. He emphasized the company's disciplined capital allocation over the past two years, which included paying down over $100 million of debt. Quezada also expressed excitement about returning to the long-term strategy of adding shareholder value through high-quality acquisitions.

Future Outlook

Carriage Services has revised its full-year 2025 outlook, now expecting total revenue between $410 million and $420 million, up from the previous range of $400 million to $410 million. Adjusted consolidated EBITDA is projected to be between $129 million and $134 million, and adjusted diluted EPS is expected to range from $3.15 to $3.35.

SEC Filing: CARRIAGE SERVICES INC [ CSV ] - 8-K - Aug. 06, 2025