Chemed Reports Fourth-Quarter 2025 Results

CINCINNATI, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its fourth quarter ended December 31, 2025, versus the comparable prior-year period.

Results for Quarter Ended December 31, 2025

Consolidated operating results:

• Revenue was $639.3 million, essentially flat with the fourth quarter of 2024

• GAAP Diluted Earnings-per-Share (EPS) of $5.48, a decrease of 9.0%

• Adjusted Diluted EPS of $6.42, a decrease of 6.0%
  
  

VITAS segment operating results:

• Net Patient Revenue of $418.8 million, an increase of 1.9%

• Average Daily Census (ADC) of 22,462, an increase of 1.3%

• Admissions of 17,419, an increase of 6.0%

• Net Income, excluding certain discrete items, of $69.5 million, a decrease of 0.6%

• Adjusted EBITDA, excluding Medicare Cap, of $91.6 million, a decrease of 1.7%

• Adjusted EBITDA margin, excluding Medicare Cap, of 21.7%, a decrease of 79-basis points
  
  

Roto-Rooter segment operating results:

• Revenue of $220.6 million, a decrease of 3.7%

• Net Income, excluding certain discrete items, of $33.8 million, a decrease of 20.6%

• Adjusted EBITDA of $47.5 million, a decline of 21.1%

• Adjusted EBITDA margin of 21.5%, a decline of 477-basis points
  
  

VITAS

VITAS net revenue was $418.8 million in the fourth quarter of 2025, which is an increase of 1.9% when compared to the prior-year period. This revenue increase is comprised primarily of a 1.3% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%. Acuity mix shift negatively impacted revenue growth 143-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes negatively impacted revenue growth by 20-basis points.

Total VITAS admissions increased 6.0% in the fourth quarter of 2025 compared to the fourth quarter of 2024.

In the fourth quarter of 2025, VITAS accrued $2.4 million in Medicare Cap billing limitation, essentially flat compared to the fourth quarter of 2024.   There was no Medicare Cap billing limitation recorded in the fourth quarter of 2025 related to the Florida combined program.

Of VITAS’ 33 Medicare provider numbers, 22 provider numbers have a projected full-year Medicare Cap cushion of 10% or greater, six provider numbers have a projected cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $9.5 million projected for the full-year 2026 Medicare Cap year. There is no Medicare Cap for the 2026 Cap year currently projected for the Florida combined program.

Average revenue per patient per day in the fourth quarter of 2025 was $208.01 which is 86-basis points above the prior-year period. Reimbursement for routine home care and high acuity care averaged $187.19 and $1,153.55, respectively. During the quarter, high acuity days-of-care were 2.2% of total days of care, a decline of 32-basis points when compared to the prior-year quarter.

The fourth quarter 2025 gross margin, excluding Medicare Cap, was 27.3%, a 150-basis point decline from the same period of 2024. Selling, general and administrative expenses were $23.8 million in the fourth quarter of 2025 compared to $25.6 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $91.6 million in the quarter, a decline of 1.7% when compared to the prior year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 21.7%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $220.6 million in the fourth quarter of 2025, a decrease of 3.7%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $55.2 million, an increase of 1.6% from the prior-year period. This aggregate commercial revenue change consisted of excavation increasing 10.9%, drain cleaning increasing 2.0%, plumbing flat between years, offset by a decline in water restoration of 20.0%.

Roto-Rooter branch residential revenue in the quarter totaled $155.6 million, a decrease of 3.1%, over the prior-year period. This aggregate residential revenue change consisted of plumbing increasing 6.3%, excavation essentially flat between periods, offset by water restoration decreasing 10.3% and drain cleaning declining 3.2%.

In the fourth quarter of 2025, revenue from independent contractors was $16.7 million which is a decline of 2.8% as compared to the same period of 2024.

Roto-Rooter’s fourth quarter 2025 gross margin was 49.8%. This compares to the prior year quarter’s gross margin of 51.3%. Roto-Rooter’s selling, general and administrative expenses were $63.2 million in the quarter, which is an increase of 10.5% compared to the fourth quarter of 2024.

Adjusted EBITDA in the fourth quarter of 2025 totaled $47.5 million, a decrease of 21.1% when compared to the fourth quarter of 2024. The Adjusted EBITDA margin in the quarter was 21.5% which represents a 477-basis point decline from the fourth quarter of 2024.

Chemed Consolidated

As of December 31, 2025, Chemed had total cash and cash equivalents of $74.5 million and no current or long-term debt.

In June 2022, Chemed entered into a five-year $550 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consisted of a $100 million amortizable term loan and a $450 million revolving credit facility. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $404.5 million undrawn borrowing capacity under the Credit Agreement after excluding $45.5 million for Letters of Credit.

During the quarter, the Company repurchased 400,000 shares of Chemed stock for $174.6 million which equates to a cost per share of $436.39. As of December 31, 2025, there was approximately $127.3 million of remaining share repurchase authorization under its plan.

Guidance for 2026

VITAS 2026 revenue, prior to Medicare Cap, is estimated to increase 5.5% to 6.5% when compared to 2025. ADC is estimated to increase 3.5% to 4.0%. Full year EBITDA margin, prior to Medicare Cap is estimated to be 17.5% to 18.0%. Medicare Cap billing limitations are estimated to be $9.5 million in calendar 2026 compared to $27.2 million in calendar 2025.

Roto-Rooter is forecasted to achieve full year 2026 revenue growth of 3.0% to 3.5%. Roto-Rooter’s adjusted EBITDA margin for 2026 is expected to be 22.5% to 23.0%.

Based upon the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $23.25 to $24.25. This compares to full-year 2025 adjusted earnings per diluted share of $21.55. The 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.9 million shares.

The 2026 earnings trajectory is weighted towards the second half of the year. An estimated 55% of the consolidated adjusted net income and consolidated adjusted EBITDA, prior to Medicare Cap, is projected to be generated in the second half of the year. Momentum is expected to build sequentially, quarter-to-quarter throughout the year.

We believe VITAS has successfully mitigated its Florida Medicare Cap issue. As a result, in 2026, the patient mix should moderate to a more favorable balance of short and longer-stay patients. However, the financial impact of admitting a higher number of potentially longer-stay patients does not come until roughly a fiscal quarter post-admission.

Roto-Rooter’s first quarter of 2025 was its strongest revenue and EBITDA margin quarter of the year. Additionally, Roto-Rooter is projected to have elevated expenses in the first half of the year in order to fund revenue growth and long-term margin improvement projects currently underway.

Management will provide more detail related to the above discussion during the conference call tomorrow morning.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m., ET, on Thursday February 26, 2026, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/srzsz65g.

Participants may also register via teleconference at: https://register-conf.media-server.com/register/BIe4160b0d86fb4a3cb11588d64e00d9e7.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in the Chemed’s Annual Report on Form 10-K for the year ended December 31, 2024 and in its Quarterly Reports filed in 2025. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CONTACT: Michael D. Witzeman
(513) 762-6714