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Jun 30, 2025
Chemed Q2 2025 Earnings Report
Chemed reported Q2 2025 results with lower net income and EPS despite modest revenue growth across both business segments.
Key Takeaways
Chemed delivered slight revenue growth in Q2 2025, but net income and EPS declined due to higher costs and Medicare Cap charges at VITAS.
Revenue reached $618.8 million, up from $595.9 million in Q2 2024.
Net income declined to $52.5 million, down from $70.9 million last year.
Adjusted EPS was $4.27 versus $5.47 in the prior-year quarter.
VITAS absorbed a $16.4 million Medicare Cap charge impacting margins.
Revenue by Segment
Forward Guidance
Chemed revised its full-year 2025 guidance downward, forecasting lower adjusted EPS and acknowledging increased Medicare Cap limitations.
Positive Outlook
- VITAS revenue expected to grow 7.5% to 8.5% in 2025 before Medicare Cap impact.
- VITAS adjusted EBITDA margin forecasted between 18.2% to 18.7%.
- Roto-Rooter expected to see revenue increase of 1.25% to 1.75% for 2025.
- 2026 Medicare Cap risk in Florida expected to be lower due to regulatory improvements.
- New expansion efforts in Florida aim to mitigate future cap risk.
Challenges Ahead
- Full-year adjusted EPS guidance lowered to $22.00–$22.30 from $24.95–$25.45.
- Estimated $28.2 million in Medicare Cap billing limitations for 2025.
- Q2 2025 included a $16.4 million Medicare Cap charge impacting margins.
- Roto-Rooter’s adjusted EBITDA margin down 517 basis points YoY.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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