Chemed operates two distinct service businesses: VITAS (hospice provider) and Roto-Rooter (plumbing and drain care). Historically, both businesses delivered consistent net income growth of 11-12% per annum, with strong cash flow used to repurchase over $2 billion of Chemed stock, leading to an 18% per annum stock price growth over 20 years.
VITAS faced a $18.9 million Medicare cap limitation in Florida for the 2025 Medicare cap year (which began in Q4 2024), but this is considered a one-time event and is not anticipated to recur in 2026 due to strategic mitigation efforts, including shifting focus back to hospital admissions.
Roto-Rooter experienced intense competition, particularly from private equity-backed companies in Google advertising, which led to double-digit declines in phone calls over the past two years; however, the competitive environment is now showing signs of improvement.
VITAS expects to return to 4-5% growth rates, with potential for high single-digit to low double-digit top-line growth in the foreseeable future, and anticipates no significant labor headwinds for 2026.
Roto-Rooter is expanding its commercial business manager program, which has demonstrated a 20% revenue increase in the 15 branches where it has been implemented, with plans to expand this program to almost all branches in 2026.

Nov 11, 2025, 7:00 PM

Transcript

Chemed Corporation Reports Q3 2025 Results and Reaffirms Guidance

CHE

Earnings

Guidance Update

Demand Weakening

Chemed Corporation reaffirmed its 2025 guidance of $22 to $22.30 per share, excluding non-cash expenses for stock options, tax benefits, litigation costs, and other discrete items.
VITAS Healthcare reported Q3 2025 net revenue of $407.7 million, a 4.2% increase year-over-year, driven by a 2.5% increase in days of care and a 4.1% Medicare reimbursement rate increase. Admissions totaled 17,714, a 5.6% improvement from the prior year, with hospital-based admissions at 44.5%. Management anticipates no Medicare cap billing limitation for its Florida program in 2026.
Roto-Rooter revenue increased 1.1% in Q3 2025, with branch residential revenue up 3.4% and commercial revenue up 2.8%. However, revenue from independent contractors declined 4.7%. Adjusted EBITDA for Roto-Rooter was $49.4 million, a 12.4% decrease from the prior year, with an adjusted EBITDA margin of 22.7%. The shift from unpaid to paid leads resulted in a $3.6 million increase in SG&A costs.
Management expects seasonal improvements in Q4 2025 for both segments and projects VITAS 2026 revenue growth in the 8% range with margins of 17.5% to 18%, while Roto-Rooter targets long-term EBITDA margins of 25% to 26%.

Oct 29, 2025, 2:00 PM

Transcript

Chemed Corporation Announces Q3 2025 Results

CHE

Earnings

New Projects/Investments

Chemed Corporation reported Service Revenues and Sales of $1,890,641 thousand for the nine months ended September 30, 2025, marking a 5.5% increase compared to the same period in 2024.
Despite revenue growth, Chemed's Adjusted EBITDA for the nine months ended September 30, 2025, decreased by 8.8% to $326,070 thousand, and Adjusted Diluted EPS declined by 7.1% to $15.16 for the same period.
VITAS, a segment of Chemed, generated $407,741 thousand in revenue after Medicare Cap Reduction in Q3 2025, with an Average Daily Census (ADC) of 22,327 and an Average Length of Stay (ALOS) of 109.7 days.
For the nine months ended September 30, 2025, VITAS's Net Service Revenues and Sales increased by 8.2% to $1,211,341 thousand, while its Adjusted EBITDA decreased by 6.2% to $182,703 thousand.
Roto-Rooter's Service Revenues and Sales for the nine months ended September 30, 2025, grew by 1.2% to $679,300 thousand, but its Adjusted EBITDA decreased by 11.1% to $157,212 thousand.

Oct 29, 2025, 2:00 PM

Presentation

Chemed Reports Q3 2025 Results with VITAS Revenue Growth and Roto-Rooter Margin Pressures

CHE

Earnings

Guidance Update

Revenue Acceleration/Inflection

VITAS Healthcare reported net revenue of $407.7 million in Q3 2025, a 4.2% increase compared to the prior year period, primarily due to a 2.5% increase in days of care and a 4.1% Medicare reimbursement rate increase.
Management anticipates no Medicare cap billing limitation for its Florida program in 2026, despite accruing $6.1 million in Q3 2025, contributing to an estimated $18.9 million for the 2025 Medicare cap year. This confidence is supported by 44.5% of Q3 2025 admissions coming from hospitals, within the target range of 42%-45%.
Roto-Rooter's revenue increased 1.1% in Q3 2025, with branch residential revenue up 3.4% and commercial revenue up 2.8%, though revenue from independent contractors declined 4.7%.
Roto-Rooter's adjusted EBITDA decreased 12.4% to $49.4 million, resulting in an adjusted EBITDA margin of 22.7%, largely due to a $3.6 million increase in SG&A costs from the shift to paid leads. Management expects margin improvements and 3% to 5% top-line growth for Roto-Rooter in 2026.

Oct 29, 2025, 2:00 PM

Transcript

Chemed Corporation Reports Q3 2025 Results, Reiterates Full-Year Guidance

CHE

Earnings

Guidance Update

Revenue Acceleration/Inflection

VITAS, Chemed's hospice segment, reported Q3 2025 net revenue of $407.7 million, an increase of 4.2% year-over-year, with admissions increasing 5.6%. The Florida Medicare cap billing limitation for 2025 was $18.9 million, and management anticipates no limitation for 2026.
Roto-Rooter's Q3 2025 revenue grew 1.1%, driven by 3.4% growth in branch residential revenue and 2.8% in branch commercial revenue. Adjusted EBITDA decreased 12.4% to $49.4 million, with the adjusted EBITDA margin at 22.7%, representing a 90 basis point sequential improvement from Q2 2025.
Chemed reiterated its full-year guidance, with management expecting to achieve the upper end of its range due to anticipated seasonal strength in Q4 for both segments. For 2026, VITAS revenue is projected to be in the 8% range with margins of 17.5%-18%.

Oct 29, 2025, 2:00 PM

Transcript

Chemed Reports Third-Quarter 2025 Financial Results

CHE

Earnings

Guidance Update

Share Buyback

Chemed Corporation reported Q3 2025 consolidated revenue increased 3.1% to $624.9 million.
GAAP diluted earnings-per-share (EPS) decreased 10.8% to $4.46, and Adjusted diluted EPS decreased 6.6% to $5.27 for Q3 2025.
The VITAS segment's net patient revenue increased 4.2% to $407.7 million, while the Roto-Rooter segment's revenue increased 1.1% to $217.2 million in Q3 2025.
As of September 30, 2025, Chemed had $129.8 million in cash and cash equivalents and no current or long-term debt.
Management reiterated its 2025 guidance of $22.00 to $22.30 per share (excluding certain items). Additionally, the company repurchased 407,500 shares for $180.8 million during the quarter, with $301.8 million remaining under its share repurchase authorization as of September 30, 2025.

Oct 28, 2025, 8:31 PM

8-K

Chemed Reports Q2 2025 Results, Revises Full-Year Guidance

CHE

Earnings

Guidance Update

Demand Weakening

Chemed's operating units, VITAS and Roto Rooter, did not meet internal expectations in Q2 2025; VITAS net revenue increased 5.8% to $396.2 million , while Roto Rooter revenue increased 0.6%.
VITAS accrued $16.4 million in Medicare cap billing limitation in Q2 2025 , with a full-year 2025 estimate of $28.2 million , including $19 million related to Florida. Management anticipates no significant Medicare cap billing limitation in Florida for the 2026 cap year.
Roto Rooter experienced softer-than-anticipated branch revenue growth in Q2 2025, with April and May being particularly weak due to external factors affecting consumer confidence. Despite this, June and July residential revenue has rebounded , though adjusted EBITDA for the quarter decreased 18.7% to $48.6 million.
Chemed revised its full-year 2025 earnings per diluted share guidance down to a range of $22.00 to $22.30, from the prior range of $24.95 to $25.45.

Jul 31, 2025, 10:55 AM

Chemed Corporation Anticipates Lower Q2 2025 Earnings and Reduces Full-Year 2025 Guidance

CHE

Guidance Update

Profit Warning

Demand Weakening

Chemed Corporation announced on June 27, 2025, that it anticipates lower second quarter earnings and is reducing its full year guidance for 2025.
This revised outlook is primarily due to a projected Medicare Cap revenue limitation for its VITAS subsidiary's Florida consolidated program, estimated to be $18 million to $25 million for the 2025 government fiscal year ending September 30, 2025. This limitation is attributed to weaker than anticipated Medicare admissions and a rate differential.
Additionally, the Roto-Rooter subsidiary experienced unexpected weakness in its residential business' demand during the second quarter of 2025.
Chemed will release its second-quarter 2025 financial results on July 29, 2025, and host a conference call on July 30, 2025, to discuss the results and provide a business update.

Jun 27, 2025, 12:00 AM

8-K

Chemed Corp Annual Meeting and Vote Outcomes – May 2025

CHE

Proxy Vote Outcomes

Board Change

Executive Compensation

Chemed Corporation held its annual stockholders meeting on May 19, 2025, where detailed vote counts were provided for the election of the entire Board of Directors.
The meeting approved key proposals including the 2025 Stock Incentive Plan, the ratification of PricewaterhouseCoopers LLP as independent accountants for 2024, and the non-binding executive compensation program.
The proposal to reduce the stockholder threshold for calling a special meeting was not presented as no representative from the proponent attended.

May 20, 2025, 12:00 AM

8-K

Chemed Corp Addresses Medicare Cap, Acquisitions, and Roto-Rooter Strategy

CHE

M&A

New Projects/Investments

Medicare Cap challenges are being managed within the VITAS business through enhanced analytics and a moderated ADC growth forecast (targeting 8%-10% instead of previous 15%), demonstrating proactive oversight of long-standing industry issues.
The company discussed its recent Covenant acquisition in Florida and outlined a proactive strategy to pursue further acquisitions in key markets.
Updates on Roto-Rooter indicated minimal tariff exposure due to cost pass-through practices and highlighted progress in growing both its commercial and residential segments, including growth through an innovative app platform.

May 13, 2025, 10:41 PM

Transcript

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