Carriage Services 2025 Q3 Earnings Adjusted EPS Beats Estimates Despite Net Income Drop

Carriage Services (CSV) reported Q3 2025 results that exceeded expectations, with revenue and adjusted EPS surpassing forecasts. The company confirmed the midpoint of its 2025 outlook, signaling confidence in sustaining growth momentum through strategic acquisitions and operational efficiency.

Revenue

Carriage Services’ total revenue rose 2.0% year-over-year to $102.74 million in Q3 2025, driven by a 5.2% increase in total operating revenue. This growth was fueled by a 21.4% surge in cemetery preneed sales and a 27.2% rise in financial revenue, primarily from preneed insurance contracts. Cemetery operating revenue climbed 12.6%, reflecting a 4.6% increase in preneed interment rights sold and a 15.1% rise in average price per right.

Earnings/Net Income

The company’s GAAP diluted EPS fell 35.4% to $0.41, dragged down by non-core divestiture costs and impairment charges. However, adjusted diluted EPS surged 17.2% to $0.75, outpacing the $0.64 in Q3 2024. Despite the GAAP decline, the adjusted metric highlights strong operational performance, with adjusted consolidated EBITDA reaching $32.98 million.

Post-Earnings Price Action Review

The strategy of buying CSV shares after quarterly revenue growth and holding for 30 days has historically delivered favorable returns. Consistently raised revenue guidance and a 1.54% post-earnings price jump in the previous quarter underscore market confidence. Over three years, this approach aligned with CSV’s positive stock trajectory, leveraging disciplined execution and strategic momentum. A 30-day holding period balanced risk and reward, capturing appreciation without excessive volatility.

CEO Commentary

Carlos Quezada, Vice Chairman and CEO, emphasized the 17.2% adjusted EPS growth and strategic acquisitions of two businesses generating $15 million in annual revenue. He highlighted cemetery preneed sales and financial revenue gains as key drivers, alongside divesting non-core assets to reallocate capital. Quezada expressed optimism about expanding the company’s footprint and aligning with its 2030 vision.

Guidance

Carriage Services updated its 2025 outlook: total revenue of $413–$417 million, adjusted EBITDA of $130–$132 million, and adjusted diluted EPS of $3.25–$3.30. The midpoint reflects confidence in sustaining growth through acquisitions and operational efficiency. Guidance excludes non-core items, with GAAP adjustments detailed in filings.

Additional News

Carriage Services completed acquisitions serving 2,600+ families and generating over $15 million in prior-year revenue while divesting eight non-core properties. CEO Carlos Quezada reiterated the company’s focus on disciplined execution and purposeful growth. The company reduced leverage to 4.1x, supporting its 2030 vision. Analysts’ average 12-month price target of $59.20 implies a 34% upside from the current price.

The company’s strategic acquisitions and divestitures, coupled with strong preneed sales and financial revenue growth, position it to meet its 2025 guidance. Analysts remain optimistic about long-term value creation, with a “buy” consensus rating.