Key Highlights

  • GAAP Net Income grew 35.2% to USD 8.9 million in the third quarter, and GAAP diluted EPS was USD 0.56 against USD 0.41, as Operating Income rose to USD 19.4 million.
  • Adjusted diluted EPS fell to USD 0.59 from USD 0.75, and adjusted consolidated EBITDA dropped to USD 27.7 million from USD 33.0 million on trust taxes tied to MLP sales.
  • Revised 2026 guidance sets adjusted EPS at USD 2.90 to USD 3.05, down from USD 3.35 to USD 3.55, with Revenue at USD 415 million to USD 420 million.
  • Funeral contract Volume rose 2.5% and average revenue per funeral contract rose 1.9%, while comparable cemetery revenue declined 7.8% on weaker preneed sales.

GAAP Gains Mask Weaker Adjusted Earnings

Carriage Services (NYSE:CSV) announced third quarter 2026 results on November 4, 2026. On a GAAP basis, net income rose to USD 8.9 million from USD 6.6 million and diluted EPS to USD 0.56 from USD 0.41. The company attributed the rise in net income to a USD 6.9 million favorable change in divestiture gains and impairments, partly offset by a USD 5.0 million lower Gross Profit contribution. Adjusted diluted EPS moved the other way, falling to USD 0.59 from USD 0.75. Total revenue was USD 100.3 million versus USD 102.7 million, and the release said financial revenue and adjusted EBITDA were hurt by additional trust taxes from the sale of certain Master Limited Partnership investments held in its trusts.

Funeral Volume Improves, Cemetery Preneed Sales Slip

The company owns funeral homes and cemeteries and sells preneed products. Funeral contracts reached 10,374 against 10,124, and average revenue per contract was USD 5,930 against USD 5,821. Insurance-funded preneed funeral contracts sold grew 7.0%, and same-store funeral contracts rose 2.3%, which management said narrows the gap from a slower-than-expected first half. In cemeteries, preneed interment rights sold fell to 3,307 from 3,569, and comparable revenue declined 7.8% on lower preneed production. Management said it has taken actions since the start of the quarter to reinforce its sales organization, including a performance dashboard and AI-powered tools. Adjusted consolidated EBITDA Margin was 27.6% against 32.1%, and for nine months GAAP diluted EPS was USD 2.17 against USD 2.47.

Lowered 2026 Outlook, Acquisitions and New Credit Facility

Carriage Services (NYSE:CSV) revised its 2026 outlook to revenue of USD 415 million to USD 420 million from USD 435 million to USD 445 million, adjusted EBITDA of USD 125 million to USD 130 million from USD 135 million to USD 140 million, and adjusted free Cash Flow of USD 40 million to USD 45 million from USD 40 million to USD 50 million. It cited lower-than-anticipated first-half mortality, weaker cemetery preneed performance, the trust taxes and revised Acquisition timing. The company has acquisitions under contract or letter of intent representing more than USD 14 million in annual revenue, with closings expected later this year and in early 2027. It also closed a new USD 300 million credit facility, raising committed capacity by USD 50 million.

Where Things Stand

In part: the guidance cut is disclosed openly, but the headline GAAP gain does not reflect core Earnings power. Carriage Services (NYSE:CSV) grew GAAP net income 35.2% because of divestiture and Impairment effects, while adjusted EPS fell and full-year adjusted EPS guidance was lowered. Funeral volumes improved, yet cemetery preneed sales remain the weak point. Watch the conference call on November 5, 2026, the pace of the acquisitions under contract, and whether the sales actions lift cemetery production.