Carriage Services Q1 2025: Key Contradictions on Sales, Strategy, and Market Dynamics

Pruneed cemetery sales and economic uncertainty, flu season impact on volume, M&A activity and strategic focus, COVID impact on funeral volumes, cremation margins and strategy are the key contradictions discussed in Carriage Services' latest 2025Q1 earnings call.



Revenue Growth and Segment Performance:
- Carriage Services reported total revenue of $107.1 million for Q1 2025, an increase of 3.5% compared to the same quarter last year.
- The growth was driven by an increase in funeral operating revenue and cemetery revenue, alongside a strategic focus on disciplined execution and financial strategy.

Cemeteries Revenue and Preneed Sales:
- Total cemetery revenue reached $27.9 million, an increase of 5.8% year-over-year, with a planned return to a preneed cemetery growth rate of 10% to 20% starting in Q2.
- The growth was impacted by a delay in available inventory in premier cemeteries, but ongoing development projects are expected to facilitate a return to the target growth rate.

Funeral and Preneed Insurance Sales:
- Total funeral operating revenue ended at $69.1 million, up 4.6% over the same period last year, driven by a 1.8% increase in average revenue per contract and a 2.4% increase in funeral home at-need volume.
- The shift in flu season, which moved some of the expected volume from Q4 to Q1, positively contributed to this growth.

Cost Management and Capital Expenditures:
- Adjusted EBITDA was $32.9 million, a decrease of 1.9% year-over-year, primarily due to planned investments in the Trinity system and field leadership development.
- Capital expenditures totaled $3.2 million, with a focus on growth and maintenance CapEx, as well as investments in Project Trinity.