Carriage Services Q2 revenue misses estimates on lower national mortality trend

Carriage Services

05/08/2026 21:43

Overview
U.S. funeral and cemetery operator's Q2 revenue rose 0.8% yr/yr, missing analyst expectations
Adjusted EPS for Q2 missed consensus, while adjusted EBITDA slightly beat estimates
Company cited lower at-need funeral volume, offset by growth in preneed programs and higher contract values

Outlook
Carriage Services lowers 2026 revenue outlook to $435-$445 mln from $440-$450 mln
Company maintains 2026 adjusted EBITDA guidance at $135-$140 mln and EPS at $3.35-$3.55
Carriage Services expects increased acquisition activity over next two qtrs and into 2027

Result Drivers
LOWER FUNERAL VOLUME - Co said a 3.5% decline in at-need funeral volume was driven by lower national mortality trends
PRENEED PROGRAM GROWTH - Growth in insurance-funded preneed funeral contracts (up 21.1%) and cemetery preneed sales (up 5.0%) helped offset volume declines
HIGHER CONTRACT VALUES - Average revenue per funeral contract rose 4.7% and average price per preneed interment right sold rose 17.3%

Company press release: ID:nGNXbP6Kfq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$102.90 mln
$108.91 mln (5 Analysts)
Q2 Adjusted EPS
Miss
$0.78
$0.82 (5 Analysts)
Q2 EPS
 
$0.77
 
Q2 Net Income
 
$12.30 mln
 
Q2 Adjusted EBITDA
Slight Beat*
$33.30 mln
$33.20 mln (5 Analysts)
Q2 Adjusted EBITDA Margin
 
32.30%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Carriage Services Inc is $60.00, about 48.1% above its August 4 closing price of $40.51
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)