How SCI Is Turning Cremation and Chaos Into Quarterly Wins

When you’re in the business of funerals, you don’t usually associate words like “growth,” “expansion,” or “profit margins.” But Service Corporation International (SCI) continues to prove that even in the deathcare industry, the economics are very much alive.

SCI’s Q1 2025 performance wasn’t flashy—it was something better: steady, strategic, and surprisingly forward-thinking. This isn’t a company just running on legacy and land plots. They’re tweaking how funerals are sold, priced, and pre-purchased, all while managing shifting consumer behaviors and regulatory headwinds like pros.

Yes, cremation is up. Yes, pre-need sales hit a speed bump. But SCI is quietly building a machine that looks ready to cash in on the eventual flood of baby boomer demand—complete with bundled merchandise, travel protection, and increasingly sophisticated upsells. It’s funerals, but make it fintech-adjacent.

With billions in liquidity, a strong buyback program, and an acquisition pipeline that’s still warming up, SCI is less about burying the past and more about banking on the future. Investors may not find this sector sexy, but it’s hard to argue with its consistency—and its cash flow.

In short: If you’re not paying attention to SCI, you’re missing out on how a legacy industry is modernizing from the casket up.

If there’s one company that knows how to handle “the end” with precision, it’s Service Corporation International (SCI). But in Q1 2025, America’s deathcare juggernaut isn’t just managing funerals—it’s also managing expectations.

The quarter delivered a solid financial performance, but behind the numbers is a story of transitions, demographic tailwinds, and a company trying to prep for the long game—while still making money in the short term.

Earnings Are Alive and Well

SCI reported adjusted EPS of $0.96, up from $0.89 last year. That’s a 7-cent bump driven by increased funeral revenue and better cost management. Fun fact: if not for a weird tax quirk involving stock options, EPS growth would’ve been 12%.

• Operating cash flow? $316 million—up more than $90 million YOY.
• Liquidity? Still stacked, with $1.6 billion on hand.
• Stock buybacks? $130 million repurchased, because nothing says “we’re confident” like investing in yourself.

Funeral Business: Still Kicking

Funeral revenue rose 4%, thanks to more services performed (+1%) and more revenue per service (+2.5%). This growth happened even with cremation inching up another 40 basis points.

And the upsell is working—contracts now more frequently include travel protection and merchandise, adding heft to the price tag when families eventually cash in those preneed plans. Think of it like the funeral industry’s version of bundling your flight, hotel, and insurance—just more eternal.

But here’s the rub:

• Preneed funeral sales were down 10% as SCI transitions from trust-based to insurance-based funding.
• The SCI Direct team is still catching up—80% of markets are now converted, but the learning curve (and licensing requirements) slowed sales. Expect this to normalize by Q4.

Cemetery Business: Slower But Stable

Cemetery revenue dropped 2%, thanks to lower pre-need property recognition. Why? Big-ticket sales were down. SCI chalked this up to timing—not doom—and they expect to make up ground later in the year.

• Gross margin? 32%, still very strong.
• April pre-need sales? Looking good. That’s insider-speak for “we’re optimistic again.”

The Long Game: From Boomers to Backlogs

Here’s the play: SCI is banking on aging baby boomers to lift service volume long term. The first wave hits 80 in 2026—just around the corner.

Meanwhile, contracts loaded with deferred merchandise and travel perks are beginning to mature. That means the average revenue per SCI Direct service is projected to double from ~$1,500 to over $3,000 in the coming years. A slow burn, but a valuable one.

And the cremation trend? It’s leveling out. Growth used to be 150 basis points a year; now it’s crawling closer to 100 or less. You can only go so high when you’re already at 60%.

Capital, M&A, and Shareholder Love

SCI continues to flex its financial muscles:

• $95M invested in Q1 for new builds, digital upgrades, and cemetery development
• $15M in acquisitions, with more on deck (targeting $75–$125M for 2025)
• $176M returned to shareholders (dividends + buybacks)

The M&A pipeline? Still hot. But SCI isn’t in a rush—it’s playing matchmaker with independent funeral homes, waiting for the right moment to swoop.

Risks: The Fine Print

• Tax headaches are coming. Changes in deduction rules mean SCI will feel a $150M cash tax hit starting in Q2.
• Tariffs? Not sweating it—60% of materials like caskets and urns are already U.S.-sourced, and long-term supplier contracts are keeping costs in check (for now).
• Regulatory pressure like the FTC’s Funeral Rule updates? SCI’s already ahead of the curve.

Final Word: Predictably Profitable, Quietly Transforming

SCI’s Q1 2025 is proof that even in an industry built around finality, evolution is constant. From insurance transitions and pricing optimization to digital modernization and strategic M&A, the deathcare giant is laying the groundwork for a more profitable (and modernized) future.

The baby boomers are coming. The backlog is bulging. And SCI, with 1,900+ locations across North America, is preparing to capitalize—one cremation, urn, and travel-protected pre-need plan at a time.

📈 The bottom line? This business is alive and well.

Earlier this week Funeral Director Daily learned from this press release from Batesville that “the U.S. District Court for the Southern District of Indiana awarded summary judgment in favor of Batesville Casket Company, LLC and Batesville Services, LLC and against Vandor Group, Inc., rejecting Vandor’s claims that Batesville’s cardboard rental insert, which the company launched in 2011, infringed four of Vandor’s patents.” 

The press release went on to say “Batesville vigorously disputed Vandor’s allegations of patent infringement and filed its own counterclaims requesting a declaration from the Court that Vandor’s patents were invalid. In its summary judgment decision, the Court agreed with Batesville that all four patents asserted by Vandor were invalid and dismissed Vandor’s infringement claims against Batesville in their entirety. Batesville’s motion for attorney’s fees is now pending before the Court.”

Batesville’s Senior Vice-President and Chief Marketing Officer Jenn Parvin made the following comment in a prepared statement in the press release, “The Court’s ruling allows us to put these accusations behind us and continue designing and delivering the high-quality products that funeral professionals need and that families deserve.”

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  When I served on the Board of Regents for the University of Minnesota one of the most fascinating aspects for me was serving on the University’s Litigation Committee.  I served on that committee for my entire six year term and for a short period of time served as Chairman when that position was temporarily vacant.

While a lot of the legal issues for the University were in the realm of employment law or patient medical issues as a research university we had our share of disputes over patents as well.  I found them fascinating and was involved in the  University strategies for many cases.  One thing I learned about patent disputes are that they take a long period of time to resolve and if you are not well-funded many companies can just wait you out.

Just for perspective, as a major public research university with a large scope of research in our mission, during my time at the University of Minnesota our researchers were applying for one patent every three days . . .so there was ample opportunity for disagreement.  Somewhat under the radar, most observers don’t know that the University of Minnesota ranks 12th nationally with expenditures of about $1.32 billion in our budget for research annually.

When I first was put on the committee I had a discussion about it with then U of M President Eric Kaler.  I remember him telling me, “Companies don’t like litigating issues with us because if needed we have the financial resources of the entire state of Minnesota behind us and we can play the long-game.”   I never wanted to pursue cases that I felt didn’t have merit for the University of Minnesota, but for those cases that we felt had merit the thought of President Kaler’s comments to me always gave me the point of view that if we felt we were right, we could wait out the eventual outcome.

As to the length of these patent disputes I cannot comment on many that are still ongoing, but there some in the public realm that I worked on.  For instance, here’s an article on one such dispute that was started in 2014 and continues, to my knowledge, unresolved to this day — the case being over a decade old at this time.

I’m guessing that Batesville is glad that their litigation on these patents is over and probably very happy that they prevailed with their side of the argument.  They can now continue to concentrate their efforts on providing products that funeral providers can use to enhance their service.

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1Director Wins 2024 NFDA Innovation Award

Brookfield, Wis. – The National Funeral Directors Association (NFDA) today announced 1Director as the winner of the prestigious 2024 NFDA Innovation Award, which is sponsored by ASD – Answering Service for Directors. This groundbreaking all-in-one funeral home management software has been recognized for its originality, standing out among finalists Clear View Caskets and Nemu. The announcement was made earlier today during the Opening General Session of the 2024 NFDA International Convention & Expo in New Orleans. 

Since its inception in 2009, the NFDA Innovation Award has celebrated creativity, innovation, and excellence among funeral service suppliers and vendors. This year, 1Director has set a new benchmark for efficiency and organization within the profession. 

1Director: Revolutionizing Funeral Service Management 

1Director redefines how funeral homes operate by offering a seamless, integrated platform that streamlines the entire funeral planning process. From case management to personalized websites, real-time family collaboration, stationery design, memorial video creation, calendar coordination, online arrangements, custom documents, and payments and accounting, 1Director enables funeral directors to manage every aspect of their services in one comprehensive experience. This innovation not only enhances operational efficiency but also significantly improves communication and satisfaction for families during their most challenging times. 

Finalists Showcased Cutting-Edge Innovations 

In addition to 1Director, the 2024 NFDA Innovation Award finalists included Clear View Caskets with their INVISION TECHNOLOGY, a state-of-the-art switchable technology that allows families to control the visibility of a casket’s interior, and Nemu, an intuitive app designed to simplify the process of dividing family heirlooms.

Both products showcased remarkable advancements in funeral service, yet it was 1Director’s ability to transform and streamline funeral home management that captured the judges’ attention. Funeral service suppliers were invited to submit innovative products or services that became commercially available after January 1, 2023, for consideration in this year’s competition.

A distinguished panel of judges evaluated the entries based on criteria such as originality, quality, and design, ultimately selecting 1Director as the product that best exemplifies the future of funeral service. All finalists, along with more than 20 additional contenders, are being showcased in the Expo Hall at the NFDA International Convention & Expo, taking place from October 20-23 in New Orleans, Louisiana.

Attendees will have the opportunity to explore these pioneering products and engage with the companies driving innovation in the profession. For more details about 1Director and other innovative products showcased at the NFDA International Convention & Expo, visit NFDA.org/InnovationAwards. 

NFDA thanks ASD – Answering Service for Directors for sponsoring the Innovation Award. NFDA also extends its gratitude to the 2024 Inspiration Award judges:

• Benny Capaul, Capaul Funeral Home, Ida, Michigan
• Brian Van Heck, Posey Funeral Directors, North Augusta, South Carolina
• Katey Houston, Return Home, Auburn, Washington
• Kevin Smith, Berceuse Funeral and Cremation Traditions, Hampton, Virginia
• Matt Bailey, Bailey Family Funeral Homes, Wallingford, Connecticut
• Mike Burns, Pittsburgh Institute of Mortuary Science, Pittsburgh, Pennsylvania
• Timothy McLoone, William R. May Funeral Home Inc., Glenside, Pennsylvania
• Valerie Janusz, Prasser-Kleczka Funeral Home, Milwaukee, Wisconsin
• Welton Hong, Ring Ring Marketing, Las Vegas, Nevada 

NFDA is the world’s leading and largest funeral service association representing nearly 20,000 individual members who represent nearly 11,000 funeral homes in the United States and 49 countries around the world. NFDA is the trusted leader, beacon for ethics and the strongest advocate for the profession. NFDA is the association of choice because it offers funeral professionals comprehensive educational resources, tools to manage successful businesses, guidance to become pillars in their communities and the expertise to foster future generations of funeral professionals. NFDA is headquartered in Brookfield, Wis., and has an office in Washington, D.C. For more information, visit www.nfda.org.

Tribute Technology Wins 2024 Artificial Intelligence Excellence Award for Obituary Writer

WAUNAKEE, WI — The Business Intelligence Group announced today that Tribute Technology was named a winner in its Artificial Intelligence Excellence Awards program.

Tribute Technology, a trusted technology provider for over 9,000 end-of-life providers, received the award for its Tribute Obituary Writer in the Artificial Creativity category for a Product or Software.

Tribute Obituary Writer is an AI-powered tool that enables funeral directors and families to quickly generate personalized obituaries by inputting details about their loved ones. With intuitive options for tone and style, families can easily tailor the obituary to reflect the essence of their loved one’s life — and easily adjust content and length. The software streamlines the process by prompting for key information such as career highlights, achievements, and interests, offering a range of tones from solemn to lighthearted, and providing options for more detailed narratives.

“Our team at Tribute Technology focuses on creating software specifically engineered for funeral homes, crematory operators, and cemeteries, and this is another example of how we are constantly improving to help funeral homes serve grieving families even better,” said Tribute Technology CEO Charlie Cole. “It’s a privilege to receive this award that recognizes this important tool, which we believe brings additional comfort to families during the worst time of their lives.”

“We are truly honored to recognize Tribute Technology with this prestigious award,” stated Maria Jimenez, Chief Nominations Officer for the Business Intelligence Group. “The unwavering commitment of their team to excellence and their innovative AI applications have catapulted them to this remarkable achievement. Congratulations to the entire organization!”

Click here for more information about Tribute Obituary Writer: https://www.tributetech.com/tribute-obituary-writer.

Members of the media with questions about Tribute Technology or any of the company’s products are services are asked to contact press@tributetech.com.

About Tribute Technology: Tribute Technology’s mission is to bring the best technology to all funeral homes, to help communities around the world celebrate life, and to pay tribute to loved ones. Over 9,000 end-of-life providers already use Tribute Technology’s software and product offerings, including websites, marketing services, management software, online planning, personalized memorial keepsakes, payment processing, and other solutions. Tribute Technology is focused on innovating to help funeral directors save time on tasks, so they can focus more on connecting with the families who have lost a loved one. The company’s goal is to give funeral directors everything they need to run their business in one place, making their lives easier.

About Business Intelligence Group: The Business Intelligence Group was founded with the mission of recognizing true talent and superior performance in the business world. Unlike other industry award programs, these programs are judged by business executives having experience and knowledge. The organization’s proprietary and unique scoring system selectively measures performance across multiple business domains and then rewards those companies whose achievements stand above those of their peers.