Chemed (CHE) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 results missed expectations, with consolidated Q4 revenue flat at $639.3M and both VITAS and Roto-Rooter facing margin pressures.

• Service revenues and sales for 2025 grew 4.1% year-over-year to $2.53 billion, with VITAS contributing 64% and Roto-Rooter 36%.

• Adjusted net income declined 11.3% to $311.6M, and adjusted diluted EPS fell 6.8% to $21.55.

• Management expects operational changes and market adjustments to drive improved results in 2026, especially in the second half.

• VITAS admissions rose 6% year-over-year, but a higher proportion of short-stay, hospital-based patients pressured revenue growth and EBITDA margin.

Financial highlights

• VITAS net revenue was $418.8M in Q4 (up 1.9%); adjusted EBITDA (ex-Medicare cap) was $91.6M (down 1.7%).

• Roto-Rooter Q4 revenue declined 3.7% to $220.6M; adjusted EBITDA was $47.5M (down 21.1%), margin 21.5% (down 477 bps).

• Full-year adjusted EBITDA decreased 8.8% to $458.7M, with margin dropping from 20.7% to 18.1%.

• Net income for Q4 was $76.8M (down from $90.3M); full-year net income was $265.2M (down from $302.0M).

• Capital expenditures increased 26.8% to $62.8M in 2025.

Outlook and guidance

• VITAS 2026 revenue (pre-Medicare cap) expected to grow 5.5%-6.5%; average daily census up 3.5%-4%; EBITDA margin (pre-cap) projected at 17.5%-18%.

• Roto-Rooter 2026 revenue growth forecasted at 3%-3.5%; adjusted EBITDA margin at 22.5%-23%.

• 2026 adjusted EPS guidance: $23.25-$24.25, up from $21.55 in 2025; 55% of adjusted net income and EBITDA expected in the second half.

• Focus remains on organic growth and acquisitions in both segments, with continued industry consolidation expected in hospice.