Quarterly and Full-Year EPS Growth
Adjusted EPS of $1.14 in Q4, up 8% year-over-year (from $1.06). Full-year adjusted EPS of $3.85, up 9% year-over-year (would have been $3.92 or +11% if the effective tax rate had remained constant).
Strong Operating Cash Flow and Fiscal-Year Improvement
Q4 adjusted operating cash flow of $213M, exceeding the high end of guidance. Full-year adjusted operating cash flow of $966M, an increase of $108M or +11% year-over-year (excluding cash taxes and special items).
Preneed Sales Momentum
Total preneed sales production increased by $29M (~+11%) in Q4. Core preneed funeral sales production up $25M (+12%); non-funeral home preneed sales production up >$4M (+8%). Cemetery preneed sales backlog grew (merchandise & service sales production up $15M).
Cemetery Revenue and Margin Expansion
Comparable cemetery revenue increased ~$5M (~+1%) in Q4. Cemetery gross profit grew ~$5M (~+3%) and gross profit percentage expanded by ~70 basis points, delivering an operating margin over 36% for the segment.
Disciplined Capital Allocation & Shareholder Returns
Returned $107M to shareholders in Q4 (repurchases $59M, dividends $48M). Full-year capital returned $645M (repurchases $461M, dividends $184M). FY acquisitions $101M (midpoint of guidance). Subsequent repurchase of ~500k shares (~$40M).
Enhanced Liquidity and Conservative Leverage
Entered a new $2.5B bank credit facility (term loan $750M + $1.7B revolver) increasing liquidity by >$350M; current liquidity about $1.7B. Net debt/EBITDA ended ~3.65x (near lower end of 3.5x–4x target).
CapEx and Investment Priorities
FY capital investments $508M (maintenance CapEx $328M; growth CapEx $79M). 2026 guidance: maintenance CapEx ~$325M, acquisitions $75M–$125M, growth CapEx $70M–$80M — prioritizing cemetery development and high-return projects (~$165M targeted for cemetery development).