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Mar 31

Chemed Q1 2025 Earnings Report

Chemed reported strong Q1 2025 results with revenue growth led by VITAS and a solid EPS performance.

Key Takeaways

Chemed delivered solid Q1 2025 results, with revenue rising to $646.9M and adjusted EPS reaching $5.63. Growth was driven by VITAS Healthcare, bolstered by the recent Covenant Health acquisition, while Roto-Rooter remained relatively flat.

Total Revenue
$647M
Previous year: $589M
+9.8%
EPS
$5.63
Previous year: $5.2
+8.3%
Average Daily Census
22.24K
Previous year: 19.67K
+13.1%
Admissions
18.14K
Previous year: 16.91K
+7.3%
Cash and Equivalents
$174M
Previous year: $313M
-44.5%
Total Assets
$1.73B
Previous year: $1.73B
-0.1%

Chemed

Chemed

Chemed Revenue by Segment

Chemed Revenue by Geographic Location

Forward Guidance

Updated 2025 earnings guidance will be provided with the Q2 release in June.

Positive Outlook

  • Strong revenue growth in VITAS segment driven by higher days-of-care.
  • Successful integration of Covenant Health acquisition with meaningful revenue contribution.
  • Improved adjusted EPS year-over-year.
  • Healthy balance sheet with no current or long-term debt.
  • Continued share repurchases indicating management confidence.

Challenges Ahead

  • Roto-Rooter segment experienced flat growth and declining gross margins.
  • Medicare Cap limitations continue to impact revenue.
  • Decrease in net income for Roto-Rooter.
  • SG&A expenses increased in both segments.
  • Free cash flow declined significantly compared to prior year.