Key Highlights

  • GAAP Net Income advanced 35.2% to USD 8.9 million in the third quarter, and GAAP diluted EPS reached USD 0.56 against USD 0.41 as Operating Income increased to USD 19.4 million.
  • Adjusted diluted EPS receded to USD 0.59 from USD 0.75, and adjusted consolidated EBITDA fell to USD 27.7 million from USD 33.0 million because of trust taxes linked to MLP sales.
  • Updated 2026 guidance sets adjusted EPS at USD 2.90 to USD 3.05, below the earlier USD 3.35 to USD 3.55, and Revenue at USD 415 million to USD 420 million.
  • Funeral contract Volume grew 2.5% and average revenue per funeral contract grew 1.9%, while comparable cemetery revenue fell 7.8% amid softer preneed sales.

GAAP Gains Obscure Softer Adjusted Earnings

Carriage Services (NYSE:CSV) announced its third-quarter 2026 results on November 4, 2026. GAAP net income moved up to USD 8.9 million from USD 6.6 million, and diluted EPS to USD 0.56 from USD 0.41. Management traced the increase to a USD 6.9 million favorable shift in divestiture gains and impairments, which offset a USD 5.0 million drop in Gross Profit contribution. Adjusted diluted EPS went the opposite direction, sliding to USD 0.59 from USD 0.75. Total revenue came to USD 100.3 million compared with USD 102.7 million, and trust taxes stemming from the sale of certain Master Limited Partnership holdings inside its trusts hurt financial revenue and adjusted EBITDA, according to the release.

Funeral Volumes Rise While Cemetery Preneed Sales Lag

The company runs funeral homes and cemeteries and sells preneed arrangements. Funeral contracts climbed to 10,374 from 10,124, and average revenue per contract rose to USD 5,930 from USD 5,821. Insurance-funded preneed funeral contracts sold were up 7.0%, and same-store funeral contracts increased 2.3%, a pickup that management said closes some of the ground lost in a weaker first half. Cemetery preneed interment rights sold dropped to 3,307 from 3,569, and comparable cemetery revenue fell 7.8% on lighter preneed production. Since the start of the quarter, management has rolled out a performance dashboard and AI-powered tools to bolster the sales force. The adjusted consolidated EBITDA Margin came in at 27.6% versus 32.1%, and nine-month GAAP diluted EPS was USD 2.17 against USD 2.47.

Reduced 2026 Outlook, Pending Acquisitions and a Bigger Credit Line

Carriage Services (NYSE:CSV) cut its 2026 targets 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. Reasons given include lighter-than-expected first-half mortality, weaker cemetery preneed results, the trust tax charge and later Acquisition timing. Deals under contract or letter of intent carry more than USD 14 million of annual revenue, with closings expected later this year and in early 2027. The company also finalized a USD 300 million credit facility, which added USD 50 million of committed capacity.

Where Things Stand

Mostly a divestiture and Impairment swing, not stronger operations. Carriage Services (NYSE:CSV) lifted GAAP net income 35.2% through those effects, whereas adjusted EPS fell and the full-year adjusted EPS target came down. Funeral volumes improved, but cemetery preneed sales remain the weak spot. Investors should follow the November 5, 2026 conference call, the pace of pending acquisitions and whether the new sales initiatives lift cemetery production.