Carriage Services Q3 2026: Second Guidance Cut Signals Cemetery Trouble
As seen on the 24/7 Wall St. homepage on November 4, 2026.
Second guidance cut of the year: full-year adjusted EPS now $2.90 to $3.05, down from $3.35 to $3.55, after cemetery comparable revenue fell 7.8% on weak preneed sales and trust taxes on MLP sales hit financial revenue. Funeral volume is still growing, but management admits the cemetery sales organization needs repair.
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Carriage Services reported adjusted diluted EPS of $0.59 for the third quarter of 2026, missing expectations. Revenue also came in short of what Wall Street expected and slid from the same quarter a year earlier.
The deepest wound came from financial revenue, which fell to $6.20 million from $9.03 million in the prior-year quarter. The culprit was an additional trust tax bill tied to the sale of Master Limited Partnership investments held in preneed trusts, a hit that was finalized only after third-quarter tax information arrived. That drag pulled adjusted consolidated EBITDA down to $27.71 million from $32.98 million.
Cemetery comparable revenue dropped 7.8%, driven by weaker preneed sales production, and consolidated preneed interment rights sold fell as well. CEO Carlos Quezada said the operational review identified gaps in fundamental sales disciplines and that targeted actions have been taken to reinforce the sales organization. Funeral volume held up, with same-store funeral contracts rising.
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This is the second time in 2026 that management has cut its full-year outlook, with adjusted diluted EPS guidance now $2.90 to $3.05. Total revenue and adjusted consolidated EBITDA guidance were trimmed as well.
Management pointed to an acquisition pipeline representing more than $14 million in annual revenue under contract or letter of intent, with closings expected later in 2026 and into early 2027. The company also closed a new credit facility and maintained the quarterly dividend.
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