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Dec 31, 2025
Chemed Q4 2025 Earnings Report
Chemed Q4 2025 Earnings Report
Key Takeaways
Chemed reported flat consolidated revenue for Q4 2025, with growth in the VITAS hospice segment offset by a decline in Roto-Rooter performance. While VITAS saw increased admissions and patient census, Roto-Rooter experienced a significant margin contraction and a decline in residential revenue.
Consolidated revenue remained flat at $639.3 million compared to the prior-year quarter.
VITAS admissions grew 6.0% and Average Daily Census (ADC) increased 1.3%.
Roto-Rooter revenue declined 3.7% with Adjusted EBITDA falling 21.1% due to higher SG&A and lower residential demand.
The company repurchased 400,000 shares during the quarter for $174.6 million.
Revenue by Segment
Forward Guidance
Chemed expects 2026 earnings to be weighted toward the second half of the year, with momentum building sequentially as VITAS mitigates Medicare Cap issues and Roto-Rooter invests in growth.
Positive Outlook
- VITAS 2026 revenue estimated to increase 5.5% to 6.5%.
- VITAS ADC estimated to increase 3.5% to 4.0%.
- Medicare Cap billing limitations expected to drop significantly to $9.5 million.
- Roto-Rooter forecasted revenue growth of 3.0% to 3.5%.
- Full-year 2026 Adjusted EPS guidance of $23.25 to $24.25.
Challenges Ahead
- Earnings trajectory is weighted towards the second half of the year (55%).
- Financial impact of longer-stay patients lags admission by roughly a quarter.
- Roto-Rooter projected to have elevated expenses in the first half of 2026.
- Roto-Rooter facing a strong prior-year comparison in Q1.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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