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Chemed (CHE) investor relations material
Chemed Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 2025 revenue rose 3.8% year-over-year, led by a 5.8% increase at VITAS and 0.6% at Roto-Rooter, but both segments underperformed expectations.
Net income fell to $52.5 million from $70.9 million year-over-year, mainly due to higher Medicare Cap liability and insurance costs.
Adjusted EBITDA for Q2 2025 was $95.3 million (15.4% margin), down from $119.9 million (20.1%) in Q2 2024.
Management remains confident in long-term growth, citing strategic initiatives and market adjustments.
VITAS CEO transition announced, with Nicholas M. Westfall departing and Joel L. Wherley succeeding.
Financial highlights
Q2 2025 service revenues and sales: $618.8 million; net income: $52.5 million; diluted EPS: $3.57; adjusted EPS: $4.27.
VITAS net revenue was $396.2 million, up 5.8% year-over-year, driven by higher days-of-care and Medicare reimbursement rates.
Roto-Rooter Q2 2025 revenue was $222.6 million, up 0.6% year-over-year; adjusted EBITDA down 18.7% to $48.6 million.
Gross margin declined to 29.8% in Q2 2025 (Q2 2024: 34.6%), mainly due to Medicare Cap and insurance costs.
Operating cash flow for the first half of 2025 was $171.4 million, up from $162.1 million in the prior year.
Outlook and guidance
VITAS 2025 revenue (pre-Medicare Cap) expected to rise 7.5%-8.5%; adjusted EBITDA margin (pre-cap) forecast at 18.2%-18.7%.
Estimated $28.2 million Medicare Cap billing limitation for 2025, mainly in Florida.
Roto-Rooter 2025 revenue projected to grow 1.25%-1.75%; adjusted EBITDA margin expected at 23.5%-24.5%.
Full-year 2025 adjusted EPS guidance lowered to $22.00-$22.30 from prior $24.95-$25.45.
Management expects no significant Medicare Cap limitation in Florida for 2026, assuming rate differentials do not recur.
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