Chemed Reports Fourth-Quarter 2025 Results

Core Insights - Chemed Corporation reported its fourth quarter financial results for 2025, highlighting mixed performance across its segments, VITAS and Roto-Rooter, with VITAS showing slight revenue growth while Roto-Rooter experienced a decline in revenue [1][2]. VITAS Segment Performance - VITAS net revenue reached $418.8 million in Q4 2025, marking a 1.9% increase from the previous year, driven by a 1.3% rise in days-of-care and a 2.2% increase in Medicare reimbursement rates [4]. - Total VITAS admissions rose by 6.0% in Q4 2025 compared to Q4 2024, indicating a positive trend in patient intake [5]. - The average revenue per patient per day was $208.01, an increase of 86 basis points year-over-year, with routine home care and high acuity care averaging $187.19 and $1,153.55, respectively [7]. - The gross margin for VITAS, excluding Medicare Cap, was 27.3%, down 150 basis points from the same period in 2024 [8]. Roto-Rooter Segment Performance - Roto-Rooter generated $220.6 million in revenue for Q4 2025, a decrease of 3.7% compared to the prior year, with commercial revenue slightly increasing by 1.6% while residential revenue fell by 3.1% [11][12]. - The gross margin for Roto-Rooter was 49.8%, down from 51.3% in the previous year, with selling, general, and administrative expenses rising by 10.5% [13]. - Adjusted EBITDA for Roto-Rooter was $47.5 million, reflecting a 21.1% decline year-over-year, with an adjusted EBITDA margin of 21.5%, down 477 basis points [14]. Consolidated Financials - Chemed's total revenue for Q4 2025 was $639.3 million, essentially flat compared to Q4 2024, with GAAP diluted EPS at $5.48, a decrease of 9.0% [8]. - The company reported a net income of $76.8 million for Q4 2025, down 0.6% from the previous year, while adjusted EBITDA, excluding Medicare Cap, was $91.6 million, a decline of 1.7% [9]. Guidance for 2026 - VITAS expects revenue growth of 5.5% to 6.5% in 2026, with an estimated average daily census increase of 3.5% to 4.0% [20]. - Roto-Rooter is projected to achieve revenue growth of 3.0% to 3.5% in 2026, with an adjusted EBITDA margin forecasted between 22.5% and 23.0% [21]. - The company anticipates full-year 2026 earnings per diluted share to be in the range of $23.25 to $24.25, compared to $21.55 in 2025 [21].