What changed in this filing

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Item 1. Business

2026-02-12 compared with 2025-02-13 · 65 added, 58 removed, 275 unchanged (31% of the section changed)

7 unchanged sentences

At December 31, 2025, we employed 17,869 full-time individuals and 7,318 part-time individuals.

Of the full-time associates, 14,946 were employed in the funeral and cemetery operations and 2,739 were employed in corporate or other overhead areas of our business.

Of the full-time associates, 16,556 were employed in the funeral and cemetery operations and 1,313 were employed in corporate areas of our business.

Approximately 2.2% of our associates are represented by unions.

Although labor disputes occur from time to time, relations with associates are generally considered favorable.

We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary surveys in an effort to determine if we are meeting the needs and expectations of our workforce.

As a result, we have been certified as a Great Place To Work since 2017 in the U.S.

and since 2020 in Canada.

Although labor disputes occur from time to time, relations with associates are generall y considered favorable.

We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary employee surveys in an effort to determine if we are meeting the needs and expectations of our workforce.

In 2025, building on our past workplace surveys, we launched our We Listen Survey, which measures engagement across areas including recognition, growth, communication, and leadership.

This employee survey will help drive company-wide initiatives and improvements.

Associate Benefits

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We believe in the power of inclusion and respecting our fellow associates’ work, ideas, beliefs, and lifestyles.

We have developed programs such as our inclusive leadership training and Associate Resource Communities (ARCs).

To further promote this inclusion, we have developed programs such as our Associate Resource Communities (ARCs).

The ARCs, which are available to all associates, allow colleagues with similar backgrounds or interests to connect for networking, provide opportunities for mentorship, and support the communities and customers we serve.

Our leadership team embraces the many backgrounds and perspectives that make each of us unique, which allows us to remain relevant to the families we serve.

Our leadership team embraces the many backgrounds and perspectives that make each of us unique.

Training and Development

We provide opportunities for career growth and supporting the personal and professional goals of our associates is a priority for us.

We also believe in creating a culture of opportunity and career growth for all our associates and supporting the personal and professional goals of our associates is a priority for us.

Our associates have access to development programs and a robust online training portal offering thousands of courses, books, audiobooks, and videos.

Additionally, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many university partnerships.

Additionally, associates can participate in mentoring programs and take advantage of discounts and tuition reimbursement through our many partnerships.

We are also proud to offer scholarship and apprentice programs to those interested in joining our profession.

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outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise, is sold at funeral service locations.

Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and other cremation memorialization and interment options.

Our cemeteries provide cemetery property interment rights, including developed lots, lawn crypts, mausoleum spaces, cremation niches, and custom inventory, including private mausoleums, family estates, and exclusive cremation memorialization options.

Cemetery merchandise and services, including memorial cemetery markers and bases, outer burial containers, flowers and floral placement, other ancillary merchandise, graveside services, merchandise installation, and interments, are sold at our cemeteries.

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New Mexico 1 1 2

New York 52 — 52

Country, State/Territory/Province Number of Funeral Service Locations Number of Cemeteries Total

New York 54 — 54

North Carolina 51 17 68

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The property consists of approximately 160,000 square feet of office space and 185,000 square feet of parking space on approximately seven acres.

We own a building in Jefferson, Louisiana with approximately 96,200 square feet of office space that we use, in part, for corporate activities.

Adjacent to this site on land owned by the Company, we are developing a new corporate headquarters building comprising approximately 250,000 square feet of office space.

The facility is designed to support collaboration, innovation, and productivity.

Upon completion of the new headquarters, the Company expects to monetize the existing corporate buildings, parking garage, and other land adjacent to the old headquarters buildings.

We also own a building in Jefferson, Louisiana with approximately 96,200 square feet of office space that we use, in part, for corporate activities.

8 Service Corporation International

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We estimate that our funeral and cemetery market share in North America is approximately 18% based on estimated total industry revenue.

Our funeral business has low to moderate barriers to entry, whereas the cemetery business barriers to entry are high due to the requirement of land and permitting along with the requirement of sufficient capital to develop cemetery property.

Our funeral business has low to moderate barriers to entry, whereas the cemetery business barriers to entry are high due to land requirements and permitting along with sufficient capital needed to develop cemetery property.

The success of a single funeral service location or cemetery in any community is a function of the name, reputation, and location of that funeral service location or cemetery.

Competitive pricing, professional service and attention, and well-maintained locations are also important.

Competitive pricing, professional service, attention to detail, and well-maintained locations are also important.

We have an unparalleled network of funeral service locations and cemeteries that offers high quality products and services at prices that are competitive with local competing funeral service locations, cemeteries, and retail locations.

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Our branding strategy gives us a strategic advantage and identity in the industry.

While this branding process is intended to emphasize our seamless national network of funeral service locations and cemeteries, the original names associated with acquired operations, and their inherent goodwill and heritage, generally remain the same.

While this branding is intended to emphasize our seamless national network of funeral service locations and cemeteries, the original names associated with acquired operations, and their inherent goodwill and heritage, generally remain the same.

For example, Geo.

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In each stage of life, Baby Boomers have set new trends, transformed society, and redefined norms, and we are already seeing the impact on our industry.

Over the last five years, we have seen the impact of the Baby Boomers through the growth in both our preneed cemetery sales and our preneed funeral production.

Over the last several years, we have seen the impact of the Baby Boomers through the growth in both our preneed cemetery sales and our preneed funeral production.

We expect to see a similar impact on our atneed results as these preneed contracts mature in the future.

In every aspect of our business, we are listening and responding to our customer’s changing needs and leveraging our scale to deliver unparalleled experiences - both digitally and in person - to meet those changing needs.

In every aspect of our business, we are listening and responding to our customer’s changing needs and preferences, and leveraging our scale to deliver unparalleled experiences - both digitally and in person - to meet those changing needs.

The following strategies remain the core of our foundation:

1) grow revenue, 2) leverage our unparalleled scale, and 3) invest capital.

We plan to remain relevant to our customers as their preferences evolve through a combination of price, product, and service differentiation strategies to facilitate revenue growth.

In addition to expected revenue growth as Baby Boomers begin impacting our atneed results, we plan to remain relevant to our customers as their preferences evolve through a combination of price, product, and service differentiation strategies to facilitate further growth.

We also expect that continued growth in our preneed sales will drive future revenue expansion.

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We responded to this trend by spending capital to repurpose traditional casket selection rooms to event rooms that can accommodate a celebration, while also updating existing locations to more contemporary, uplifting spaces.

During the arrangement, we offer a customer-friendly digital presentation of options that allows the customer to choose merchandise and services including unique celebration, catering, and celebrant services.

During the arrangement, we offer a contemporary and customer-friendly digital presentation of options that allows the customer to choose merchandise and services including unique celebration, catering, and celebrant services.

In our funeral segment, we focus on merchandise and services that are meaningful to both our burial and cremation customers.

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Over the past several years, we have substantially increased our property options to offer unique choices.

From high-end family estates, many of which capture incredible views, to nicely landscaped hedge estates, we continue to develop property selections that resonate with our customers.

From private high-end family estates, many of which capture incredible views and custom architectural features, to nicely landscaped hedge estates, we continue to develop property selections that resonate with our customers.

For cemetery merchandise and services, we have developed relevant products such as customized cemetery property offerings, and specialized graveside service options.

We continue to embrace cremation offerings for customers in our cemetery segment offering an increased variety of cremation property options, including glass-front cremation niches and cremation gardens.

We continue to place strategic emphasis on cremation offerings for customers in our cemetery segment offering an increased variety of cremation property options, including glass-front cremation niches and cremation gardens.

As we evolve to meet ever-changing customer preferences, we will continue to serve the numerous religious, ethnic, and cultural traditions important to many of our customers.

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Our highly trained sales force of approximately 3,800 counselors provide customers with informed guidance about various service and merchandise options tailored for today’s consumers.

Utilizing our scale, our counselors are reaching out to consumers through multiple lead channels, driving future revenue growth.

Utilizing our scale, our counselors are reaching out to consumers through multiple lead channels, including growing digital lead channels, securing future revenue growth.

We sponsor community events and seminars to educate and provide guidance around preplanning both funeral and cemetery services and merchandise.

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Leverage Our Unparalleled Scale

As the largest deathcare company in North America, we leverage our scale by developing our sales organization and with the use of technology through out our network.

As our preneed backlog grows from the development of our sales organization, the backlog also realizes scale benefits from the ability to grow trust portfolios and from our our preferred preneed insurance provider agreement .

Our scale also enables cost efficiencies through purchasing power and utilizing economies of scale through our supply chain channel.

During the COVID-19 pandemic, we were able to continue to operate without any major disruptions to our business, which highlights the strength of our scale.

As the largest deathcare company in North America, we leverage our unparalleled scale by developing our sales organization and optimizing and responsibly deploying digital innovation throughout our network.

As our preneed backlog grows from the development of our sales organization, the backlog also realizes scale benefits from the ability to grow trust portfolios and from our preferred preneed insurance provider agreement .

In addition, scale also enables cost efficiencies through purchasing power and utilizing economies of scale through our supply chain channel.

Developing Our Sales Organization

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We continue to diversify our sales force to understand and serve the numerous religious, ethnic, and cultural traditions important to our customers.

Our premier combination locations and other large and recognizable cemeteries and funeral homes, along with the selling tools we have available, attract high-quality sales talent.

Our premier combination locations and other large and recognizable cemeteries and funeral homes, along with the contemporary selling tools we have available, attract high-quality sales talent.

Our scale allows us to operate and expand our sales organization in an efficient manner to bolster preneed sales growth.

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The scale of our multi-billion dollar trust portfolios allows us to leverage access to preeminent money managers with favorable fee structures generating above average returns to help offset inflation.

In July 2024, we finalized our agreement to change our preferred preneed insurance provider in the United States, which will allow us to further utilize our scale and streamline our processes across our network.

In July 2024, we finalized an agreement to change our preferred preneed insurance provider in the United States, which allows us to further utilize our scale and streamline our processes across our network.

Our blended funding approach between insurance and trust-funded merchandise and service products allows us to combine the positive cash flow and predictability of the insurance product with the potential upside of higher returns from our trusted merchandise and service products.

This blended approach also helps our ability to grow our preneed backlog in a cash flow neutral manner as general agency commissions on our preneed insurance sales offset associated selling compensation for both preneed trust and insurance sales.

Optimizing Our Network and Deploying Customer-Facing Technology

We continue driving operational discipline and leverage our scale through standardizing processes and capitalizing on new technologies to improve the customer experience.

Our advancements in technology are changing the way we present our product and service offerings to customers.

Our atneed point of sale system, HMIS+, uses a digital platform enabled with high resolution video and photographs to create a seamless presentation of our products and service offerings.

Our mobile preneed sales system, Beacon, provides customers with a full digital presentation experience in their home or other place of their choosing.

Our Dignity Memorial® location websites feature a modern and user-friendly design.

Our location-specific websites are designed for mobile use and optimized for better search engine ranking.

In addition to the contemporary and sophisticated design, client families enjoy innovative features such as an interactive obituary experience, the ability to create and share personalized content in memory of their loved one, the ability to see venues, catering options, online pricing, and new self-service options like scheduling an appointment online.

We have reduced the time it takes to receive customer feedback through digital surveys.

Online reviews provide visibility of customer engagement at the location level and shorten our response time in addressing any customer concerns.

We have established a social media presence for many of our funeral and cemetery businesses, including the ability to livestream services at many of our locations.

These digital efforts have resulted in favorable customer satisfaction ratings and increased digital sales leads over the last several years.

We are encouraged by the increased digital opportunities and we are making great strides with internal projects leveraging technology and simplifying nearly every facet of service delivery.

Scale-Enabled Procurement and Supply Chain Efficiencies

Our scale enables us to leverage purchasing power across merchandise and services driving more favorable pricing.

Centralized procurement and long-standing supplier relationships allow us to capture economies of scale while maintaining high standards of quality.

Advancing Customer-Facing Technology and Enhancing the User Experience

Throughout the year, we invested in customer-facing technology initiatives designed to improve engagement while supporting operational efficiency and consistency at scale.

These investments focused on streamlining digital interactions, improving access to information, and enabling customers to complete transactions more efficiently.

We enhanced key digital touchpoints, including websites and customer portals, to improve usability, content visibility, and payment flow.

In addition, we expanded technology capabilities that support both at-need and preneed sales across funeral and cemetery operations, improving consistency of tools and processes while supporting revenue-generating activities.

Together, these initiatives are intended to reduce complexity, support more efficient service delivery, and strengthen the customer experience in a way that is scalable and aligned with long-term financial performance.

Digital Innovation and AI Governance

As technology continues to evolve, the Company is thoughtfully adopting digital tools, including artificial intelligence (AI), to support its funeral, cremation, and cemetery operations, enhance service quality, and improve efficiency across both field

locations and corporate functions.

SCI’s approach to AI is grounded in responsible innovation, with a focus on deploying practical use cases while maintaining strong governance, risk management, and associate education to guide adoption.

SCI believes AI-enabled tools will improve operational effectiveness, particularly in areas where technology can help associates focus more fully on care, compassion, and service.

Central to this approach is preparing our workforce to understand, use, and oversee AI responsibly and ethically, consistent with the Company’s values and commitment to Service Excellence.

To support responsible use of AI by associates, SCI’s Employee Artificial Intelligence Use Policy outlines expectations for ethical, secure and appropriate use of AI-enabled tools.

Oversight of AI use is provided through SCI’s AI Governance and Advisory Committee, which supports Company leadership by establishing governance practices and setting strategic guidance for the use of AI.

The Committee helps identify and mitigate legal, ethical, data privacy, and cybersecurity risks, and facilitates the sharing of insights and learnings as AI initiatives are implemented.

As AI technologies and regulatory expectations continue to evolve, SCI will regularly review and enhance its governance practices, policies, and workforce training efforts to support innovation while maintaining the trust of the families, communities, and associates we serve.

Capital Allocation

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Over the last several years, we have deployed significant growth capital spend on new funeral service and cemetery locations and related real estate, enlarging our footprint into new communities as well as expanding existing locations to remain relevant to our customers.

For our cemetery businesses, we plan to pursue strategic acquisitions to create more opportunities to serve Baby Boomers through our tiered cemetery options.

Additionally, we acquire land for future cemetery development in some of our largest markets.

For our cemetery businesses, we plan to pursue strategic acquisitions to create more opportunities to serve consumers through our tiered cemetery options.

Additionally, we look for opportunities to acquire land for future cemetery development in certain of our largest markets.

This investment in our future will allow us to continue creating cemetery offerings that appeal to varying preferences in those markets for many years to come.

In 2025, we invested $101.3 million in acquiring 22 funeral service locations and 2 cemeteries, which included 2 combination locations.

In addition, we spent $62.1 million for several real estate acquisitions that will be utilized for new funeral service or cemetery locations during the twelve months ended December 31, 2024.

In addition, we spent $18.5 million for several real estate acquisitions that will be utilized for new funeral service or cemetery locations during 2025.

Return Excess Cash to Shareholders

In addition to any strategic acquisition or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program.

In addition to any strategic acquisitions or new build opportunities, we continue to return cash to shareholders through dividends and our share repurchase program.

Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.34 per common share at the end of 2025.

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Managing Debt

We continue to focus on maintaining optimal levels of liquidity and financial flexibility.

Foundational to our capital allocation strategy, we continue to focus on maintaining optimal levels of liquidity and financial flexibility.

Our flexible capital strategy allows us to manage our debt maturity profile by making open market debt repurchases when it is opportunistic to do so.

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This cash flow stream and our significant liquidity allow us to substantially reduce our long-term debt maturities should we choose to do so.

In January 2023, we entered into a new bank credit agreement that consists of a $675.0 million Term Loan due January 2028 and an increased Bank Credit Facility due January 2028 providing for borrowings of up to $1.5 billion.

Proceeds from this new bank credit agreement were used to settle our existing Term Loan and Bank Credit Facility due May 2024.

Our new bank credit agreement provides us with flexibility for incremental liquidity, capital investment, working capital, and other general corporate purposes.

In November 2025, we entered into a new bank credit agreement due November 2030 consisting of a $750.0 million term loan, which is funded debt, and a revolving credit facility providing for borrowings of up to $1.75 billion.

Proceeds from this new bank credit agreement were used to settle our existing Term Loan and Bank Credit Facility, which were both due January 2028.

In addition to more favorable pricing, the new bank credit agreement provides us flexibility with incremental liquidity for capital investment, working capital, and other general corporate purposes.

We make available free of charge, on or through our website, our annual, quarterly, and current reports and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with the Securities and Exchange Commission (SEC).

Our website is http://www.sci-corp.com and our telephone number is (713) 522-5141.

We also post announcements, updates, events and investor information and presentations on our website in addition to copies of all recent news releases.

We may use the Investors section of our website to communicate with investors.

We also post announcements, updates, events, recent news releases and investor information and presentations on our website.

12 Service Corporation International

use the Investors section of our website to communicate with investors.

It is possible that the financial and other information posted there could be deemed material information.

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The SEC website address is http://www.sec.gov .

12 Service Corporation International

Executive Officers of the Company

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Tanzberger was named Executive Vice President and Chief Financial Officer in 2024.

In addition to his current responsibilities, he will now oversee business development, including mergers and acquisitions, construction and real estate, as well as pricing and revenue development.

He oversees all finance and accounting functions, business and real estate development, revenue management and information technology.

He was appointed Senior Vice President and Chief Financial Officer in June 2006 and also served as Treasurer from July 2007 to February 2017.

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She holds a bachelor's degree in business administration in accounting from Texas A&M University.

Nash serves as Chair of the Board of Directors of Genesys Works Houston.

Nash serves on the Board of Directors of Genesys Works Houston and on the UpSkill Committee of Greater Houston Partnership.

Faulk was named Senior Vice President and Chief Operating Officer in 2024 and oversees SCI’s funeral and cemetery operations.

He joined SCI in March 2010 as Vice President, Business Development, to oversee the Company's strategic growth, including mergers and acquisitions, real estate, and construction.

In 2018, he was named Senior Vice President of

Revenue and Business Development.

In 2018, he was named Senior Vice President of Revenue and Business Development.

His promotion expanded his role to include setting direction for the company’s pricing and cemetery development functions.

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Since 2019, Mrs.

Moore serves on the Board of Regents of Commonwealth Institute of Funeral Service.

Moore serves on the Board of Regents of Commonwealth Institute of Funeral Service and serves as a member of the University of North Carolina's Master of Accounting Advisory Council.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business