Carriage Services, Inc. (CSV) Reports Strong Q4 2025 and Full-Year Results

Financial Highlights and Shareholder Insights

Carriage Services, Inc. (NYSE: CSV) has released its financial results for the quarter and year ended December 31, 2025. The company posted robust growth across key metrics, continuing its disciplined approach to growth and long-term value creation. Below are the details investors need to know, including potential price-sensitive information.

Key Financial Highlights

• GAAP Diluted EPS: \$0.77 for Q4 2025, up 24.2% from \$0.62 in the prior year quarter.
• Adjusted Diluted EPS: \$0.75 for Q4 2025, up 21.0% from \$0.62 in the prior year quarter.
• Full-Year GAAP Diluted EPS: \$3.29 (up from \$2.17 in FY 2024).
• Full-Year Adjusted Diluted EPS: \$3.20 (up from \$2.65 in FY 2024).
• Operating Income: \$24.6 million for Q4 2025, up from \$21.1 million Q4 2024.
• Operating Income Margin: Improved to 23.3% from 21.6% year-over-year.
• Net Income: \$12.3 million in Q4 2025; Full-Year Net Income \$51.5 million.
• Adjusted Free Cash Flow: \$6.4 million for Q4 2025, \$40-\$50 million projected for 2026.
• Total Revenue: \$404.2 million for Q4 2025, with full-year revenue guidance for 2026 at \$440-\$450 million.
• Adjusted Consolidated EBITDA: \$135-\$140 million guidance for 2026.
• Capital Expenditures: \$25-\$30 million guidance for 2026.
• Dividends: \$0.1125 per share declared for Q4 2025; \$0.45 per share for the full year.

Balance Sheet & Financial Position

• Total Assets: \$1.35 billion as of December 31, 2025.
• Current Liabilities: \$57.2 million.
• Credit Facility: \$125.4 million drawn, with additional capacity.
• Senior Notes: \$397.3 million outstanding.
• Retained Earnings: \$294.7 million.
• Treasury Stock: \$(278.8) million.
• Total Liabilities and Equity: \$1.35 billion.

Cash Flow & Capital Allocation

• Net Cash Provided by Operating Activities: \$51.5 million for FY 2025.
• Net Cash Used in Investing Activities: \$(59.0) million, including acquisitions.
• Proceeds from Divestitures: \$44.5 million.
• Net Cash Used in Financing Activities: \$(25.0) million.
• Borrowings from Credit Facility: \$137.5 million.
• Dividends Paid: \$(7.0) million.

Guidance and Forward-Looking Statements

• 2026 Revenue Guidance: \$440-\$450 million, including expected impact of acquisitions and divestitures.
• 2026 Adjusted EBITDA Guidance: \$135-\$140 million.
• 2026 Adjusted EPS Guidance: \$3.35-\$3.55.
• 2026 Adjusted Free Cash Flow Guidance: \$40-\$50 million.
• 2026 Capital Expenditures Guidance: \$25-\$30 million.

Non-GAAP Financial Measures

The company has reported both GAAP and non-GAAP financial metrics, with quantitative reconciliations provided to aid investor understanding. Non-GAAP metrics are used to provide additional insight into ongoing performance and comparability from period to period.

Shareholder & Price-Sensitive Information

• EPS Growth: The significant increase in both GAAP and adjusted EPS may be viewed positively by investors and could impact share price.
• Strong Free Cash Flow: Consistent generation and guidance for continued strong free cash flow supports dividend sustainability and potential share buybacks.
• Dividend Continuity: Quarterly dividend maintained at \$0.1125 per share, with annual dividend totaling \$0.45 per share.
• Capital Allocation: Focus on acquisitions and divestitures, with material proceeds from asset sales and ongoing investment in growth.
• Debt and Liquidity: Company maintains robust liquidity with credit facility capacity, while senior notes and lease obligations are well-managed.
• Non-GAAP Reporting: Continued use of non-GAAP metrics and reconciliations; investors should review these for a complete understanding.
• Guidance for 2026: Provides clarity for investor expectations and may influence share valuation depending on market perception.

Potential Share Price Impact

The combination of strong earnings growth, positive free cash flow, continued dividends, and clear guidance for 2026 are all price-sensitive factors that may influence investor sentiment and share valuation. The company’s disciplined approach to capital allocation, including acquisitions and divestitures, and its maintenance of a healthy balance sheet are likely to be viewed positively in the market.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Please review the official filings and consult with your financial advisor before making any investment decisions. Past performance is not indicative of future results.

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