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Carriage Services Q1 2025 Earnings Report
Carriage Services reported strong first-quarter 2025 results, driven by increased funeral operating revenue and effective cost discipline, leading to significant growth in net income and adjusted diluted EPS.
Key Takeaways
Carriage Services announced robust first-quarter 2025 financial results, with total revenue reaching $107.1 million, a 3.5% increase year-over-year. Net income surged by 200.1% to $20.9 million, and adjusted diluted EPS grew by 28.0% to $0.96. The company also reduced its leverage ratio and divested non-core assets.
GAAP net income increased by $14.0 million or 200.1% over the prior year quarter, reaching $20.9 million.
Adjusted diluted EPS grew by 28.0% to $0.96, demonstrating strong execution of strategic objectives.
Total funeral operating revenue increased by 4.6%, driven by a 2.3% increase in consolidated funeral average revenue per contract.
The company divested non-core assets for $18.7 million and paid down $17.0 million of debt, lowering the leverage ratio to 4.2x from 5.0x.
Revenue by Segment
Forward Guidance
For the full year 2025, Carriage Services anticipates total revenue between $400 million and $410 million, adjusted consolidated EBITDA between $128 million and $133 million, adjusted diluted EPS between $3.10 and $3.30, and adjusted free cash flow between $40 million and $50 million.
Positive Outlook
- Expected organic growth initiatives in preneed sales for both cemetery and funeral businesses.
- Continued focus on cost discipline to enhance financial performance.
- Ongoing efforts to deleverage the balance sheet, improving financial stability.
- Anticipated adjusted diluted EPS of $3.10 - $3.30 for the full year 2025.
- Projected adjusted free cash flow of $40 million - $50 million, indicating strong cash generation.
Challenges Ahead
- Expected divestiture of certain non-core assets in the first half of 2025.
- Divestitures are projected to reduce 2025 revenue by approximately $7.9 million.
- Divestitures are projected to reduce adjusted consolidated EBITDA by approximately $2.3 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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