Carriage Cuts Revenue Outlook as Pricing Offsets Weaker Volume
The funeral and cemetery operator lowered its 2026 revenue outlook to $435 million to $445 million.
Carriage Services (CSV) expanded its second-quarter adjusted EBITDA margin despite continued pressure on funeral and cemetery volumes. Adjusted EBITDA rose 3.1% from a year earlier to $33.3 million, while the margin widened 70 basis points to 32.3%.
The margin gain extended a two-quarter improvement, rising from 31.8% in the first quarter and 30.8% in the fourth quarter. Adjusted EBITDA nevertheless slipped about 1.5% sequentially as revenue remained below both preceding quarters.
Revenue rose 0.8% from a year earlier to $102.9 million, while diluted earnings increased to $0.77 a share from $0.74. Adjusted earnings were $0.78 a share, up from $0.74, though revenue fell 3.0% from the first quarter and adjusted earnings declined from $0.86 a share.
Funeral comparable revenue declined 2.4% to $55.7 million as contracts fell 4.0% and at-need volume decreased 3.5%. Average revenue per contract rose 4.7%, and the comparable-volume decline moderated from 5.8% in the first quarter. Funeral comparable EBITDA fell 5.8%, while cemetery comparable revenue was nearly flat and cemetery EBITDA declined 1.4%.
Cemetery preneed results leaned more heavily on pricing. The average price per interment right increased 17.3% as units sold fell 14.0%, producing 5.0% growth in sales production, down from 10.0% growth in the first quarter. Insurance-funded preneed funeral contract growth accelerated to 21.1% from 8.0% in the prior quarter.
Financial revenue rose 14.0% to $9.3 million, and financial EBITDA increased to $8.7 million from $7.6 million as the margin widened 50 basis points to 93.2%. Acquired businesses added $3.9 million of revenue and $1.2 million of EBITDA, helping offset the loss of revenue from divested operations.
Carriage now expects 2026 revenue of $435 million to $445 million, reducing both ends of its previous range by $5 million because of lower mortality and delayed acquisitions. The company retained guidance for adjusted EBITDA of $135 million to $140 million, adjusted earnings of $3.35 to $3.55 a share and adjusted free cash flow of $40 million to $50 million.
Adjusted free cash flow fell 63% to $2.6 million as capital spending increased and operating cash flow declined. Carriage cut its planned 2026 capital expenditures to $20 million to $25 million, completed another funeral-home acquisition and held leverage at 4.0 times.