Carriage Services (CSV) investor relations material

Executive summary

• Q2 2026 revenue was $102.9 million, up 0.8% year-over-year, with net income rising 4.5% to $12.3 million and adjusted EBITDA up 3.1% to $33.3 million, despite lower funeral volumes due to softer mortality trends; six-month revenue was $209.1 million, nearly flat year-over-year, while net income declined 21.1% due to prior-year divestiture gains.

• Funeral segment saw a 4.7% increase in average revenue per contract but a 4.0% decrease in contract volume for Q2; cemetery segment had a 17.3% increase in average price per interment right sold, offset by a 14.0% decrease in units sold.

• Profitability improved, with adjusted EBITDA margin expanding to 32.3% and adjusted diluted EPS rising to $0.78; July showed a return to positive funeral volume growth.

• Strategic acquisition of one funeral home completed in Knoxville, with further acquisition discussions ongoing.

• Operating cash flow for the first half was $22.5 million, with $9.2 million in capital expenditures and $4.5 million spent on acquisitions.

Financial highlights

• Q2 gross profit was $35.0 million, down 2.5% year-over-year; adjusted operating profit for Q2 was $45.2 million (43.9% margin); adjusted consolidated EBITDA was $33.3 million (32.3% margin), up 3.1% year-over-year.

• Adjusted diluted EPS was $0.78, up from $0.74 last year; for six months, $1.61, down from $2.07.

• Cash from operating activities for the first half was $22.5 million; adjusted free cash flow was $13.8 million, down from $20.3 million due to higher capital expenditures.

• Interest expense for the quarter was $6.7 million, down from $7.0 million a year ago.

• Cash at quarter-end was $2.6 million; $124.0 million outstanding on the credit facility.

Outlook and guidance

• 2026 revenue outlook revised to $435–$445 million, adjusted EBITDA to $135–$140 million, and adjusted EPS to $3.35–$3.55; adjusted free cash flow guidance is $40–$50 million.

• Adjusted EBITDA margin expected between 31% and 31.5%; overhead expenses between 13.5% and 14% of revenue.

• Guidance revision reflects lower first-half demand, delayed acquisition timing, and lower-than-anticipated mortality trends.

• Capital expenditures expected at $20–$25 million; ending leverage ratio expected between 3.9x and 4x.

• Management remains focused on growth through strategic acquisitions, capital expenditures, and debt repayment.