Here are 1-2 brief analogies for Service Corporation International (SCI):

• The Marriott or Hilton of the funeral and cemetery industry.
• The HCA Healthcare of deathcare services.

• Funeral Arrangement and Direction: Professional services for planning and conducting funerals and cremations, including facility use, transportation, and administrative support.
• Cremation Services: Services related to the cremation process, removal, and preparation.
• Embalming and Preparation Services: Services for the preparation and preservation of human remains.
• Funeral Merchandise: Sale of burial caskets, urns, outer burial containers, flowers, and memorialization products.
• Cemetery Property and Interment Rights: Sale of burial plots, mausoleum spaces, niches, and other cremation memorialization and interment options.
• Cemetery Merchandise and Services: Sale of memorial markers, graveside services, and merchandise installations.
• Pre-Need Arrangements: Planning and sale of funeral and cemetery products and services in advance.

Service Corporation International (SCI) primarily sells its deathcare products and services directly to individuals and families.

The company serves two main categories of individual customers:

1. Bereaved Individuals and Families: These customers require immediate funeral, cremation, or burial services and associated merchandise following the death of a loved one. This includes services such as embalming, cremation, use of funeral facilities, arranging and directing services, as well as the purchase of caskets, urns, memorial markers, and other related products.
2. Individuals Planning for Future Needs (Pre-Need Customers): These customers proactively plan and purchase deathcare services and merchandise for themselves or family members in advance of need. This often involves pre-arranging funeral services, purchasing cemetery plots, mausoleum spaces, or cremation niches, and other related merchandise and services for future use.

Major Suppliers:

• Matthews International Corp (MATW)
• Baxter International Inc. (BAX)

Thomas L. Ryan, Chairman of the Board and Chief Executive Officer

Mr. Ryan joined Service Corporation International (SCI) in 1996. He served in various financial management roles until November 2000, when he became Chief Executive Officer of European Operations in Paris, France. In July 2002, he returned to the United States as President and Chief Operating Officer. Mr. Ryan was appointed Chief Executive Officer in February 2005 and elected Chairman of the Board in January 2016. Before joining SCI, he was a certified public accountant with Coopers & Lybrand LLP for eight years. His tenure at SCI has emphasized acquisitions and disciplined capital allocation.

Eric D. Tanzberger, Executive Vice President, Chief Financial Officer

Mr. Tanzberger joined SCI in August 1996 as Manager of Budgets and Financial Analysis. He held various management positions, including Assistant Corporate Controller and Vice President of Investor Relations, before being promoted to Corporate Controller in August 2002. He became Chief Financial Officer and Senior Vice President in June 2006. On October 1, 2024, he was promoted to Executive Vice President and Chief Financial Officer, with expanded responsibilities including business development (mergers and acquisitions), construction and real estate, and pricing and revenue development, in addition to his finance duties. Prior to SCI, he served as an Assistant Corporate Controller at Kirby Marine Transportation Corporation and was a Certified Public Accountant at Coopers & Lybrand L.L.P. for over five years.

Sumner J. Waring, President

Mr. Waring was promoted to President of SCI on October 1, 2024. He previously served as Chief Operating Officer. As President, he is responsible for indirectly leading SCI's operations and has assumed sales and marketing responsibilities. Mr. Waring is a fifth-generation funeral director.

John Faulk, Senior Vice President, Chief Operating Officer

Mr. Faulk was promoted to Senior Vice President and Chief Operating Officer on October 1, 2024. He previously held the role of Senior Vice President of Revenue and Business Development. He is recognized for his strategic acumen, institutional knowledge, and broad business experience, making him a leader for SCI's funeral and cemetery operations.

Lori Spilde, Senior Vice President, General Counsel and Secretary

Ms. Spilde serves as Senior Vice President, General Counsel and Secretary for Service Corporation International.

Key Risks to Service Corporation International (SCI)

1. Shift in Consumer Preferences Towards Cremation and Lower-Revenue Services: Service Corporation International faces a significant risk from the ongoing, secular trend of consumers increasingly choosing cremation over traditional burials. Cremation rates have steadily climbed, projected to reach 61.9% in the U.S. in 2024 and an estimated 82.1% by 2045. This shift is driven by factors such as cost, environmental concerns, and cultural changes, and it directly impacts SCI's revenue model. Cremation services typically generate lower average revenue per service compared to full-service burials, which include higher-margin items like caskets and embalming. This trend leads to margin compression, even as overall revenue might grow, necessitating adaptation through diversified offerings and monetization of memorialization options.
2. Regulatory Risks and Management of Preneed Backlog and Trusts: SCI's substantial preneed business, where customers pay for funeral and cemetery services in advance, presents considerable regulatory and financial risks. The company held a massive unfulfilled preneed backlog of $16.0 billion at the end of 2024. A large portion of these funds is held in affiliated funeral and cemetery trusts, which are invested in securities markets. Should these investments experience significant declines, or if inflation causes the cost of future services to increase more rapidly than the trust earnings, SCI may be required to use its operational cash flow to cover the shortfall. Additionally, the deathcare industry is subject to stringent and varied regulatory frameworks across different jurisdictions, and changes in these regulations, particularly those governing preneed sales or cremation practices, could adversely affect SCI's operations and profitability.
3. High Fixed-Cost Structure and Vulnerability to Inflation: The deathcare industry is inherently capital-intensive, characterized by a high fixed-cost structure. A significant portion of SCI's operating expenses relates to maintaining its extensive network of funeral service locations and cemeteries, as well as staffing. While this structure can offer operational leverage during periods of strong revenue, it also makes the business vulnerable to persistent inflation and rising operating expenses. When inflation is high, these fixed costs can quickly erode profit margins if the company cannot effectively pass on increased expenses to consumers through higher service prices.

The emergence of online-first, direct-to-consumer deathcare providers, particularly for cremation services, threatens SCI's traditional full-service funeral home and cemetery business model by offering significantly lower-cost and more streamlined alternatives.

Service Corporation International (SCI) operates in the deathcare industry, primarily offering funeral and cemetery products and services across the United States and Canada.

The addressable markets for their main products and services are sized as follows:

United States

• The overall U.S. deathcare market was estimated at approximately USD 44.9 billion in 2024.
• The U.S. funeral homes market size was valued at USD 13.03 billion in 2024 and is projected to reach USD 18.29 billion by 2030.
• The cemetery services market in the U.S. was approximately USD 6.4 billion in 2024.

Canada

• The funeral homes market in Canada was approximately USD 1.6 billion in 2024.
• The cemetery services market in Canada is projected to be around USD 1,787 million (approximately USD 1.79 billion) in 2025.

Expected Drivers of Future Revenue Growth for Service Corporation International (SCI)

Service Corporation International (SCI) is anticipated to drive future revenue growth over the next 2-3 years through a combination of strategic initiatives and favorable market dynamics. These key drivers include robust growth in pre-need sales, increasing average revenue per service, ongoing strategic acquisitions and market expansion, and the long-term demographic tailwinds stabilizing funeral volumes.

• Growth in Pre-Need Funeral and Cemetery Sales Production: SCI expects its pre-need cemetery sales production to return to low to mid-single-digit percentage growth in 2025. The company is highly confident in impressively growing its general agency revenues, supported by a new pre-need insurance marketing agreement. This trend continued into late 2024 and 2025, with comparable pre-need funeral sales production growing 11% and comparable pre-need cemetery sales production growing 2% over the fourth quarter of 2024. Management anticipates pre-need funeral and cemetery sales production to grow in the low to mid-single-digit range for 2026.
• Increased Average Revenue Per Service in Funeral and Cemetery Segments: The company has demonstrated solid growth in its funeral sales averages. For instance, comparable total funeral sales average grew 3% over the fourth quarter of 2024. For 2026, SCI expects average revenue per case to grow at inflationary rates. In the cemetery segment, growth in higher-margin trust fund income has contributed to modest gross profit growth, even with flat revenues. Core revenue increases in cemeteries have been primarily driven by higher property revenue and merchandise and services revenue, which includes recognized merchandise and service trust fund income.
• Strategic Acquisitions and Market Expansion: SCI continues to invest in expanding its footprint. In 2024, the company invested $181 million in acquiring 26 funeral homes and 6 cemeteries in major metropolitan markets, alongside $62 million in real estate transactions to expand existing locations. Analysts also link the company's steady margin profile to expansion projects, digital initiatives, and acquisitions as potential long-term growth drivers.
• Demographic Tailwinds and Stabilization of Funeral Volumes: SCI anticipates funeral volumes to stabilize in 2025 compared to 2024 levels. The company believes that the "pull-forward effect" of higher mortality rates will become negligible, allowing the positive effects of demographics, its premier locations, and the substantial pre-need funeral backlog to contribute to future volume growth. While funeral volumes are expected to be flat to slightly down for 2026, the underlying demographic trends in the deathcare industry are a long-term positive.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Service Corporation International repurchased $461 million of its shares during 2025. In the fourth quarter of 2025 alone, $59 million was spent on share repurchases, acquiring just under 1 million shares.
• In 2024, the company's share buybacks amounted to $253.733 million. This followed $544.844 million in annual share repurchases during 2023.
• As of May 6, 2025, the Board of Directors increased the share repurchase authorization by approximately $528 million, bringing the total current repurchase authority to $600 million. Similarly, in November 2023, an additional $477 million was authorized for buybacks, leading to a total of $600 million in repurchase authority.

Share Issuance

• Information regarding significant dollar amounts of share issuances that would increase the total share count was not prominently disclosed in the available financial summaries for the specified period. The company's capital allocation has primarily focused on reducing outstanding shares through repurchases.

Inbound Investments

• No specific information was found regarding large inbound investments made in Service Corporation International by third-parties, such as strategic partners or private equity firms, during the last 3-5 years.

Outbound Investments

• In 2025, Service Corporation International invested $101 million in business acquisitions, acquiring 22 funeral homes and 2 cemeteries in major metropolitan markets.
• During the fourth quarter of 2025, the company invested $36 million into business acquisitions across locations in North Carolina, Arizona, Florida, and Canada.
• For 2026, the company expects to allocate between $75 million and $125 million for acquisitions.

Capital Expenditures

• Total capital investments for Service Corporation International reached $508 million in 2025. Of this, approximately $328 million was allocated to maintenance, cemetery development, and other capital expenditures, while $79 million was designated for growth capital, including the construction of new funeral homes, facility expansions, and the purchase of real estate for future opportunities.
• In 2024, capital expenditures increased to $389.11 million, reflecting investments aimed at facility expansions and modernization, particularly to support growth in cremation services.
• The guidance for 2026 includes an allocation of $325 million for maintenance capital expenditures.