Carriage Services (NYSE:CSV) reported higher revenue and earnings in the fourth quarter of 2025, supported by growth in both its funeral and cemetery businesses and stronger trust fund investment performance. Management also introduced 2026 guidance that assumes a more growth-oriented posture, including contributions from 2025 acquisitions and a range of potential additional deals expected to close in 2026.
Fourth-quarter results: revenue and margin expansion
For Q4 2025, Carriage posted total revenue of $105.5 million, up 8% from the year-ago quarter. Adjusted consolidated EBITDA rose to $32.5 million, up 11%, and adjusted EBITDA margin expanded to 30.8%, an increase of 80 basis points year over year. Adjusted diluted EPS was $0.75, up from $0.62 in Q4 2024, while GAAP diluted EPS was $0.77 versus $0.62 a year earlier.
However, Enwright noted results were partially offset by an unanticipated employee benefit expense of approximately $1.2 million, driven by “a few high-cost claimants” and a higher volume of medical claims filed in December versus prior years. He said the expense reduced Q4 adjusted diluted EPS by about $0.05 to $0.06. In Q&A, management characterized the large-claim event as a one-off versus the prior couple of years and said the 2026 guide incorporates an updated view of expected employee benefit expense.
Segment performance: funeral, cemetery, and financial revenue
Carriage’s funeral segment delivered Q4 funeral operating revenue of $61.1 million, up 9.6% year over year. Funeral home operating volume increased 6.8% to 10,571, and average revenue per contract grew 2.6% to $5,777. Management said the performance reflected strategic pricing, service mix optimization, and steady execution. Quezada also referenced an easier comparison tied to flu-season timing: December 2024 volume was lower than expected due to flu activity shifting into January 2025, while December 2025 saw a “more typical” flu season.
The cemetery segment was a key growth driver in the quarter. Cemetery operating revenue was $33.8 million, up $5.3 million, or 18.4%, from the year-ago period. Management said the increase was primarily driven by:
- 25.5% growth in pre-need cemetery sales production
- 15.6% growth in pre-need interment rights sold
- 5.3% increase in average sales per property contract
Financial revenue rose to $9.3 million, up 15.3% year over year, which management said was primarily due to strong trust fund investment performance. The company also reported a 33.8% increase in pre-need insurance contracts sold versus the prior-year quarter.
Full-year 2025: portfolio changes and earnings growth
For the full year, total revenue was $417.4 million, up 3.3% from $404.2 million in 2024. Quezada said the reported growth rate understated underlying performance given portfolio repositioning during the year. He said divestitures of non-core businesses reduced revenue by about $9 million in 2025, while acquisitions completed in September contributed about $4 million in revenue during 2025. Management said those acquired businesses are expected to reach $16 million in revenue in 2026.
Adjusted consolidated EBITDA for the year was $130.7 million, up 3.5%, with adjusted EBITDA margin at 31.3%, slightly higher than the prior year. Adjusted diluted EPS was $3.20 compared to $2.65 in 2024, up 20.8%. Enwright added that full-year GAAP diluted EPS increased by $1.15, or 54.8%, while adjusted diluted EPS grew by $0.55, or 20.8%.
Cash flow, leverage, overhead, and capital spending
Enwright said cash from operating activities increased by $4.8 million versus the prior-year quarter, a 52.2% rise, driven primarily by improved operating results. Adjusted free cash flow in Q4 was down $0.4 million, or 5.4%, due mainly to higher capital expenditures.
Carriage ended the year with a bank leverage ratio of 4.0x, down from 4.3x at the end of Q4 2024, and within the company’s long-term leverage target of 3.5x to 4.0x.
Q4 capital expenditures totaled $7.9 million, up from $4.4 million in the prior-year quarter. The company spent $5.2 million on growth capital (primarily cemetery development) and $2.7 million on maintenance capital.
Overhead in Q4 was $15.2 million, or 14.4% of revenue, compared with $12.9 million, or 13.2%, in the year-ago quarter. Enwright said the increase was predominantly tied to higher incentive pay for the field. Full-year overhead was $56.6 million, or 13.6% of revenue, which he said aligns with the company’s long-term target.
2026 outlook: higher revenue, steady margins, and acquisition assumptions
For 2026, Carriage guided to revenue of $440 million to $450 million, representing approximately 5.5% to 8% growth versus 2025. The company expects same-store funeral growth in the low single digits and cemetery growth in the high single digits, with pre-need cemetery sales production remaining within its 10% to 20% target range.
Adjusted consolidated EBITDA is forecast at $135 million to $140 million, with margin expected between 30.5% and 31.5%. Overhead is projected at 13.5% to 14.5%, above the long-term goal, primarily due to increased IT investment, project training rollout expenses, and continued investment in talent.
The company guided to adjusted diluted EPS of $3.35 to $3.55, noting that the expected full-year effective tax rate is projected to rise to 28.5% to 29% from 26.7% in 2025. Adjusted free cash flow is expected at $40 million to $50 million, assuming capital expenditures of $25 million to $30 million.
Management said the 2026 outlook includes the full-year impact of 2025 acquisitions and also assumes additional, not-yet-announced M&A. In Q&A, Enwright said the guide includes an estimated $5 million to $10 million revenue impact from potential 2026 acquisitions, and management indicated it is speaking with more owners than in prior years. The company said it expects to end 2026 with leverage between 3.9x and 4.0x. When asked about deal valuation, management suggested an EBITDA multiple range of roughly 7x to 9x, depending on the asset. In a follow-up, management indicated the guide assumes an average margin of about 30% on the incremental M&A contribution.
On technology initiatives, management discussed “Trinity,” noting that rollout remains expected to start in Q2 while still in pilot phase, but acknowledged the project is behind schedule. Quezada said the system has become “more robust” than initially scoped due to added integrations, automation, AI-related components, and enhanced reporting and tracking capabilities. Management said no Trinity-driven uplift is assumed in 2026 guidance.
About Carriage Services (NYSE:CSV)
Carriage Services, Inc operates as a leading provider of funeral, cemetery and cremation services in the United States. The company owns and operates a network of funeral homes, cemeteries, crematories and related service facilities, offering a comprehensive suite of end-of-life services. Its portfolio encompasses traditional funeral services, memorials, graveside burials, mausoleum entombment and direct cremation options, alongside personalized tributes and reception arrangements.
In addition to standard funeral and cemetery offerings, Carriage Services provides pre-arrangement planning and financing solutions designed to ease the administrative and financial burden on grieving families.
