Carriage Cuts 2026 Outlook After Funeral Volume Recovers

The Tip Desk · November 11, 2026 · 3 min read

The funeral and cemetery operator now sees full-year revenue of $415 million to $420 million after third-quarter contracts rose 2.5%.

Carriage Services, Inc. (CSV) cut its 2026 revenue outlook to $415 million to $420 million from $435 million to $445 million after third-quarter results showed a recovery in funeral volume that did not offset weaker cemetery preneed sales, additional trust taxes and a slower start to the year.

The funeral and cemetery operator said it is revising full-year expectations to reflect year-to-date results, including lower-than-anticipated mortality rates in the first half, weaker cemetery preneed performance, additional trust taxes tied to the sale of certain Master Limited Partnership investments, and revised timing of certain expected acquisitions. Adjusted consolidated EBITDA guidance was lowered to $125 million to $130 million from $135 million to $140 million, and adjusted diluted EPS to $2.90 to $3.05 from $3.35 to $3.55. Adjusted free cash flow was cut to $40 million to $45 million from $40 million to $50 million. Capital expenditures remain $20 million to $25 million.

Consolidated funeral contract volume increased 2.5% to 10,374 contracts from 10,124 a year earlier, after at-need volume declined 3.5% in the second quarter. Consolidated average revenue per funeral contract grew 1.9% to $5,930 from $5,821. Insurance-funded preneed funeral contracts sold grew 7.0%. Vice Chairman and Chief Executive Officer Carlos Quezada said same-store funeral contracts increased 2.3% as the company closed the gap from a slower-than-expected first half.

Cemetery comparable revenue declined 7.8%, which the company said was primarily driven by lower preneed sales production. Comparable preneed interment rights sold fell to 3,166 from 3,509, and comparable preneed sales production declined to $25.7 million from $27.0 million. Consolidated preneed interment rights sold decreased 7.3% to 3,307 from 3,569, while the consolidated average price per preneed interment right sold rose 1.7% to $6,363 from $6,257. Cemetery comparable EBITDA declined to $13.6 million from $17.1 million, with the cemetery comparable EBITDA margin compressing to 41.8% from 48.3%.

Total revenue for the three months ended September 30, 2026 was $100.3 million, down $2.5 million from $102.7 million a year earlier. GAAP net income rose 35.2% to $8.9 million from $6.6 million, and GAAP diluted EPS was $0.56 versus $0.41. Operating income increased 10.8% to $19.4 million from $17.5 million. The company said net income included a $6.9 million favorable change in net gains and losses on divestitures and impairment charges, partially offset by a $5.0 million decrease in gross profit contribution, a $0.6 million loss on extinguishment of debt, and a $0.6 million increase in income tax expense.

Adjusted diluted EPS fell to $0.59 from $0.75, and adjusted consolidated EBITDA declined to $27.7 million from $33.0 million, with the adjusted EBITDA margin compressing to 27.6% from 32.1%. Funeral comparable EBITDA was $20.4 million versus $20.2 million, with the funeral comparable EBITDA margin at 35.9% versus 36.9%. Financial revenue fell to $6.2 million from $9.0 million, which the company said was negatively impacted by additional trust taxes associated with the sale of certain MLP investments, finalized upon receipt of third-quarter tax information.

Quezada said an operational review identified opportunities to strengthen fundamental sales disciplines in the cemetery business, and that since the beginning of the third quarter the company has taken targeted actions to reinforce its sales organization, including a comprehensive sales performance dashboard and AI-powered tools. Strategic acquisitions under contract or letter of intent now represent more than $14 million in annual revenue, with closings anticipated later in 2026 and in early 2027. The company also closed a new $300 million credit facility and increased committed borrowing capacity by $50 million.