Carriage Services ends $100M equity program, cuts leverage target

Carriage Services, Inc. (NYSE: CSV) announced a capital allocation framework and said it is terminating its $100 million at-the-market equity offering program, effective Oct. 4, 2026.

The Houston-based funeral and cemetery services company said it is lowering its targeted leverage ratio range from 3.5x–4.0x to 3.0x–3.5x. The company operates 155 funeral homes across 24 states and 28 cemeteries in 9 states.

Chief Executive Officer Carlos Quezada said the decision to end the ATM program followed a review of shareholder concerns, the company's current valuation, and its free cash flow outlook. "We do not believe issuing equity at current valuation levels appropriately reflects Carriage's intrinsic value or our long-term earnings potential," Quezada said.

In a separate announcement, Carriage said it entered into a new $300 million revolving credit facility led by JPMorgan Chase, replacing its prior $250 million facility.

Under the capital allocation framework, the company outlined the following priorities: funding core business operations, reducing debt ahead of the May 2029 maturity of $400 million in 4.25% Senior Notes, pursuing selective acquisitions, and repurchasing shares when the company determines a gap exists between its stock price and its assessed intrinsic value.

Carriage said share repurchases and acquisitions will be weighed against its leverage targets and balance sheet priorities. The company said it does not intend to pursue acquisitions that would compromise its financial position ahead of the 2029 debt maturity.

The company said it expects to provide an operating and financial update alongside its third-quarter results, including an update on acquisition activity.

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