Chemed (CHE) Q1 2026 earnings summary

Executive summary

• Service revenues and sales grew 4.1% year-over-year to $2.53 billion for the full year 2025, with Q1 2026 up 1.6% sequentially to $657.5 million, driven by strong VITAS performance and a slight decline in Roto-Rooter revenue.

• Adjusted EBITDA declined 8.8% year-over-year to $458.7 million in 2025, and Q1 2026 saw a 4.5% sequential decrease to $116.3 million.

• Adjusted net income fell 11.3% year-over-year to $311.6 million in 2025, with Q1 2026 down 6.9% sequentially to $77.4 million.

• Adjusted diluted EPS decreased 6.8% year-over-year to $21.55 in 2025, but was stable sequentially at $5.65 in Q1 2026, up 0.4% year-over-year.

• Full-year guidance was raised due to VITAS outperformance and significant share repurchases.

Financial highlights

• Average annual revenue growth since 2003 is 10.9%, with adjusted net income CAGR of 18.2% and adjusted diluted EPS CAGR of 19.9%.

• 2025 capital expenditures increased 26.8% year-over-year to $62.8 million; Q1 2026 capex rose 28.9% sequentially to $17.1 million.

• Cumulative capital returned to shareholders from 2007 to Q1 2026 totals $3.47 billion, with 18.1 million shares repurchased at an average cost of $172.92.

• Operating cash flow increased to $88.2 million from $32.7 million year-over-year.

• 500,000 shares repurchased for $197.7 million during the quarter.

Outlook and guidance

• Management continues to focus on organic growth, strategic acquisitions, and capital returns, with ongoing consolidation in both hospice and plumbing segments.

• VITAS ADC growth guidance raised to 4.5%-5.5% (from 3.5%-4.0%).

• VITAS revenue growth (excluding Medicare Cap) now expected at 6.5%-7.5% (up from 5.5%-6.5%).

• VITAS adjusted EBITDA margin (ex-Medicare Cap) revised to 18.0%-18.5%.

• Roto-Rooter revenue growth guidance unchanged at 3.0%-3.5%; adjusted EBITDA margin lowered to 21.5%-22.5%.

• Full-year adjusted EPS guidance raised to $24.00-$24.75, a 13% increase at midpoint over 2025.