Chemed (CHE) Q1 2026 earnings summary

Executive summary

• Consolidated revenue rose 1.6% year-over-year to $657.5 million in Q1 2026, driven by strong VITAS performance and offset by a slight decline in Roto-Rooter revenue.

• Adjusted diluted EPS increased 0.4% to $5.65, while GAAP diluted EPS decreased 0.4% to $4.84.

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

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

• 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.

Financial highlights

• VITAS net revenue rose 3.1% year-over-year to $420 million in Q1 2026, driven by a 2.2% increase in days of care and a 2.6% Medicare reimbursement rate increase.

• Roto-Rooter revenue declined 0.9% to $237.5 million in Q1 2026; commercial revenue fell 1.9% and residential revenue declined 1.5%.

• Adjusted EBITDA for Q1 2026 was $116.3 million (17.7% of revenue), down from $121.7 million (18.8%) in Q1 2025.

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

• $197.7 million spent on share repurchases in Q1 2026 at an average price of $395.36 per share.

Outlook and guidance

• VITAS ADC growth guidance raised to 4.5%-5.5% (from 3.5%-4.0%), and revenue growth (excluding Medicare Cap) to 6.5%-7.5% (from 5.5%-6.5%).

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

• Roto-Rooter revenue growth guidance unchanged at 3.0%-3.5%, but EBITDA margin guidance lowered to 21.5%-22.5% due to higher marketing costs.

• Full-year 2026 adjusted EPS guidance raised to $24.00-$24.75, a 13% increase over 2025.

• Management expects operating income and cash flows to be sufficient for ongoing operations and commitments.