Key Points
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Carriage Services cut its 2026 outlook after weaker cemetery sales, trust-related taxes and delayed acquisitions. It now expects revenue of $415 million–$420 million and adjusted diluted EPS of $2.90–$3.05, both below its prior forecasts.
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Cemetery performance was the mainA declined to $13.6 million. Preneed sales weakness was concentrated in California, prompting the company to overhaul aspects of its sales operation
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Funeral contract volumes showed signs of recovery, rising 2.3% in the quarter, while Carriage reported more than $14 million in annual revenue represented by acquisitions under contract or letters of intent.
Carriage Services (NYSE:CSV) lowered its full-year 2026 outlook after weaker cemetery preneed sales and trust-related taxes weighed on third-quarter <a href="https://bitcomme.com/cardinal-health-q1-earnings-call-highlights-2/” title=”Cardinal Health Q1 Earnings Call Highlights”>earnings, offsetting a recovery in funeral contract volume.
Third-quarter revenue fell 2.4% to $100.3 million from $102.7 million a year earlier. Adjusted consolidated EBITDA declined to $27.7 million from $33 million, while adjusted diluted earnings per share fell to $0.59 from $0.75.
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Chief Executive Officer Carlos Quezada said the results fell short of the company’s expectations, but pointed to improved funeral volumes and an acquisition pipeline as signs of progress. Management is also overhauling parts of its cemetery sales operation after performance failed to meet its standards.
Lower Outlook Reflects Cemetery Sales Weakness
Carriage now expects full-year revenue of $415 million to $420 million, down from its prior forecast of $435 million to $445 million. The company also reduced its adjusted EBITDA outlook to $125 million to $130 million from $135 million to $140 million and its adjusted diluted EPS forecast to $2.90 to $3.05 from $3.35 to $3.55.
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The revised outlook calls for adjusted free cash flow of $40 million to $45 million, compared with the previous range of $40 million to $50 million. The capital expenditure forecast remains unchanged at $20 million to $25 million.
Chief Financial Officer John Enwright said the largest component of the revenue forecast reduction was cemetery sales performance. The outlook also reflects an unanticipated trust tax impact and later-than-expected acquisition closings, while the funeral forecast has not materially changed, he said.
