Core Viewpoint - Chemed Corporation will deliver a virtual presentation at the Oppenheimer 36th Annual Healthcare Conference on March 19, 2026, at approximately 9:20 a.m. (ET) [1] Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [3] - The company operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the nation, and Roto-Rooter, the leading provider of plumbing and drain cleaning services [3] Presentation Details - The virtual presentation will be webcast live and accessible through the Chemed website, with a replay available within 24 hours for 90 days [2]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw VITAS' net revenue at $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [14] - Roto-Rooter revenue declined by 3.7% in the fourth quarter of 2025 compared to the same period in 2024, with branch residential revenue decreasing by 3.1% [9][16] - Adjusted EBITDA for VITAS was $91.6 million, a decline of 1.7% year-over-year, while Roto-Rooter's adjusted EBITDA totaled $47.5 million, a decrease of 21.1% compared to the prior year [15][21] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in the fourth quarter, reflecting a 6% improvement from the same period in 2024, with hospital-based admissions making up 44.8% of total admissions [4][5] - Roto-Rooter branch commercial revenue increased by 1.6%, while residential revenue declined by 3.1%, with water restoration revenue declining by 10.3% [9][16][19] - The average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [15] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,462 patients, an increase of 1.3%, with hospital-directed admissions increasing by 9.9% [26] - The company received a certificate of need to operate in Manatee County, Florida, which represents a significant growth opportunity [8][28] Company Strategy and Development Direction - VITAS is focusing on balancing its admission patterns to improve revenue growth and EBITDA margins, particularly by increasing long-stay patient admissions [8][27] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown positive preliminary results [9][19] - The company plans to centralize billing and collections for water restoration to improve efficiency and reduce write-offs [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is behind them and anticipates a transition year for both VITAS and Roto-Rooter in 2026 [11][12] - The company expects VITAS revenue to grow by 5.5%-6.5% in 2026, while Roto-Rooter is forecasted to achieve revenue growth of 3%-3.5% [22][23] - Management acknowledged the challenges faced by Roto-Rooter due to increased marketing costs and write-offs but remains optimistic about future growth opportunities [12][41] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [21] - The estimated earnings per diluted share for 2026 is projected to be in the range of $23.25-$24.25, compared to $21.55 for 2025 [24] Q&A Session Summary Question: Confidence in Roto-Rooter revenue growth in 2026 - Management highlighted improvements in paid leads and a transition from free leads to paid leads as key factors for expected revenue growth [32][34] Question: VITAS revenue and EBITDA progression - Management indicated that the focus on short-stay admissions has impacted revenue growth, but a return to a normalized growth rate is expected as patient mix is adjusted [50][51] Question: Structural changes in Roto-Rooter and the plumbing industry - Management acknowledged challenges from private equity and changes in lead generation but expressed confidence in Roto-Rooter's ability to adapt and grow [53][56]

Financial Data and Key Metrics Changes - VITAS' net revenue for Q4 2025 was $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [14] - Adjusted EBITDA for VITAS, excluding Medicare cap, was $91.6 million, a decline of 1.7% year-over-year, with an adjusted EBITDA margin of 21.7%, down 79 basis points from the previous year [15] - Roto-Rooter revenue declined by 3.7% in Q4 2025 compared to Q4 2024, with adjusted EBITDA at $47.5 million, a decrease of 21.1% year-over-year, and an adjusted EBITDA margin of 21.5%, down 477 basis points [9][21] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in Q4 2025, a 6% improvement from Q4 2024, with hospital-based admissions making up 44.8% of total admissions, the highest post-pandemic [4][5] - Roto-Rooter branch residential revenue decreased by 3.1%, with plumbing revenue increasing by 6.3% while water restoration revenue declined by 10.3% [16] - Roto-Rooter branch commercial revenue increased by 1.6%, with excavation revenue up 10.9% and drain cleaning revenue up 2% [19] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,462 patients, a 1.3% increase, with hospital-directed admissions up 9.9% and home-based admissions up 4.1% [26] - The average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [15] - Roto-Rooter experienced a significant increase in paid leads by 9.4% compared to Q4 2024, although total leads remained flat due to a decline in natural leads [9][10] Company Strategy and Development Direction - VITAS aims to balance its admission patterns to improve revenue growth and EBITDA margins, with a focus on long-stay patients to enhance financial performance [8][29] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown promising results in branches where they were implemented [19] - The company is pursuing strategic acquisitions and new CON opportunities in Florida to drive growth for VITAS [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is resolved, allowing for a return to a more sustainable growth pattern for VITAS [11][29] - Roto-Rooter is expected to face a transition year in 2026, with anticipated modest growth driven by improved lead generation and billing practices [12][42] - The company believes that the difficult operating environment is temporary and that long-term growth prospects remain intact for both VITAS and Roto-Rooter [11][60] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [21] - For 2026, VITAS revenue is projected to grow by 5.5%-6.5%, while Roto-Rooter is expected to achieve revenue growth of 3%-3.5% [22][23] Q&A Session Summary Question: What gives confidence in Roto-Rooter revenue growth in 2026 after flat revenues in 2025? - Management highlighted improvements in paid leads and a transition from free leads to paid leads, which is expected to stabilize and grow revenue [32][35] Question: Are long-term margin targets still achievable for Roto-Rooter? - Management indicated that achieving 24%-25% margins is still possible if revenue growth normalizes, but the path is less clear due to increased marketing costs [44][46] Question: What is the outlook for VITAS revenue and EBITDA progression in 2026? - Management noted that a shift back to long-stay patients is necessary for revenue growth, with expectations for gradual improvement throughout the year [50][51] Question: Is there a structural change in the plumbing industry affecting Roto-Rooter? - Management acknowledged challenges from private equity and changes in lead generation but expressed confidence that these issues are being addressed and that Roto-Rooter can return to stable growth [54][60]

Financial Data and Key Metrics Changes - VITAS' net revenue for Q4 2025 was $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [12] - Adjusted EBITDA for VITAS, excluding Medicare cap, was $91.6 million, a decline of 1.7% year-over-year, with an adjusted EBITDA margin of 21.7%, down 79 basis points from the prior year [13] - Roto-Rooter revenue declined by 3.7% in Q4 2025 compared to the same period in 2024, with adjusted EBITDA at $47.5 million, a decrease of 21.1% [8][18] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in Q4 2025, a 6% improvement from Q4 2024, with hospital-directed admissions increasing by 9.9% [4][23] - Roto-Rooter branch residential revenue decreased by 3.1%, while branch commercial revenue increased by 1.6% [8][14] - Water restoration revenue declined by 10.3%, attributed to increased scrutiny from insurance companies leading to higher write-offs [15][17] Market Data and Key Metrics Changes - The percentage of total admissions from hospitals in Florida was 44.8%, indicating a recovery in the patient mix post-pandemic [5] - Average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [13] - The average daily census for VITAS was 22,462 patients, a 1.3% increase, with a median length of stay of 17 days [23] Company Strategy and Development Direction - VITAS is focusing on balancing admissions between hospital-based and other pre-admission locations to improve revenue growth and EBITDA margins [6][24] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown positive preliminary results [8][17] - The company plans to pursue strategic acquisitions and new start opportunities in Florida and other CON states to drive growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is resolved, allowing for a return to normal growth patterns for VITAS [10][26] - Roto-Rooter is expected to face a challenging operating environment but anticipates modest growth driven by improved lead generation and billing practices [10][11] - The company expects 2026 to be a transition year for both subsidiaries, with VITAS revenue growth projected at 5.5%-6.5% and Roto-Rooter at 3%-3.5% [19][20] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [18] - The estimated Medicare cap billing limitations for 2026 are $9.5 million, significantly lower than $27.2 million in 2025 [19] Q&A Session Summary Question: What gives confidence in Roto-Rooter revenue growth in 2026 after flat revenues in 2025? - Management highlighted improvements in paid leads and a recovery in natural leads visibility, which are expected to drive revenue growth [30][34] Question: Are the long-term margin targets still achievable for Roto-Rooter? - Management indicated that achieving 24%-25% margins is still possible if Roto-Rooter can return to normalized revenue growth [42][44] Question: What is the outlook for VITAS revenue and EBITDA progression in 2026? - Management expects a return to normalized growth rates of 7%-9% as the patient mix is adjusted, with revenue growth building throughout the year [49][50]

Core Insights - The Pennant Group, Inc. reported strong financial results for the year 2025, with significant increases in revenue, net income, and adjusted earnings per share, indicating robust growth in its home health, hospice, and senior living services [1][2][4]. Financial Performance - Total revenue for 2025 was $947.7 million, a 36.3% increase from the previous year, with fourth-quarter revenue reaching $289.3 million, up 53.2% year-over-year [2][22]. - Net income for the full year was $29.6 million, a 31.1% increase, while fourth-quarter net income was $8.6 million, up 50.0% compared to the prior year quarter [2][3]. - Adjusted net income for 2025 was $41.6 million, reflecting a 38.9% increase, with fourth-quarter adjusted net income at $12.2 million, up 43.1% year-over-year [2][32]. Segment Performance - Home Health and Hospice Services segment revenue for 2025 was $732.7 million, a 41.0% increase, with fourth-quarter revenue at $233.3 million, up 64.3% [2][22]. - Senior Living Services segment revenue for 2025 was $215.0 million, a 22.3% increase, with fourth-quarter revenue at $56.1 million, up 19.6% [2][27]. Operational Metrics - Total home health admissions for 2025 were 86,076, a 44.1% increase, with fourth-quarter admissions at 28,941, up 81.3% [2][24]. - Hospice average daily census for 2025 was 4,204, a 28.6% increase, with fourth-quarter census at 5,060, up 46.9% [2][27]. - Senior living average occupancy for the fourth quarter was 80.6%, an increase of 200 basis points year-over-year, with average monthly revenue per occupied room at $5,238, up 5.6% [2][27]. Guidance for 2026 - The company anticipates total revenue for 2026 to be between $1,133.6 million and $1,171.8 million, with adjusted earnings per diluted share expected to be between $1.26 and $1.36 [5][6]. - Adjusted EBITDA for 2026 is projected to be between $88.5 million and $94.1 million [5][6]. Management Commentary - The CEO highlighted 2025 as a year of record-breaking performance and strategic growth, emphasizing the importance of operational excellence and successful integration of new operations [4][6]. - The COO noted the focus on maintaining momentum and delivering strong results across all key growth metrics, indicating confidence in continued success in 2026 [4][6].

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].

Company Overview - Chemed is a diversified services company operating in healthcare and essential home services markets, with a dual-segment model that provides stable revenue streams through hospice care and property maintenance [6] - As of February 12, 2026, Chemed's market capitalization is $6.76 billion, with a revenue of $2.53 billion and a net income of $278.81 million [4] Recent Developments - On February 12, 2026, Barington Companies Management disclosed a new position in Chemed, acquiring 13,000 shares valued at approximately $5.56 million [1][2] - This new position represents 3.65% of Barington Companies Management's reportable U.S. equity assets [8] Financial Performance - Chemed reported third-quarter revenue of $624.9 million, reflecting a year-over-year increase of 3.1%, while adjusted diluted EPS decreased by 6.6% to $5.27 [10] - VITAS revenue increased by 4.2% to $407.7 million, with admissions up 5.6% and average daily census up 2.5% [11] - Roto-Rooter revenue grew by 1.1% to $217.2 million, although margins experienced compression [11] - Chemed ended the quarter with $129.8 million in cash and no current or long-term debt, maintaining full-year guidance of $22.00 to $22.30 per share [11] Market Position and Strategy - Chemed operates through two main segments: VITAS for hospice and palliative care services, and Roto-Rooter for plumbing and water restoration services, targeting both healthcare and property maintenance sectors [9] - The company leverages its national network, brand strength, and operational expertise to maintain a competitive position in its core markets [6] - The recent investment by Barington Companies Management adds defensive exposure to Chemed's portfolio, which is primarily focused on consumer and technology sectors [12]

Group 1 - Chemed Corporation's Board of Directors has authorized an additional $300 million for stock repurchase under the existing share repurchase program, funded through operational cash and a revolving credit facility [1] - The company declared a quarterly cash dividend of 60 cents per share, payable on March 13, 2026, to shareholders of record as of February 23, 2026, marking the 219th consecutive quarterly dividend in its 54 years as a public company [2] - Chemed operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the U.S., and Roto-Rooter, the leading provider of plumbing and drain cleaning services [3]

Core Thesis - Chemed Corporation is viewed positively despite recent stock price declines, with a focus on the recovery potential of its hospice business, VITAS, and the overall valuation dislocation in the market [1][5]. Company Overview - Chemed Corporation operates two distinct businesses: VITAS, a hospice and palliative care provider, and Roto-Rooter, a plumbing services company, generating approximately $2.4 billion in revenue and $370 million in operating income [2]. - The company maintains a strong financial position with a return on invested capital (ROIC) above 20%, return on equity (ROE) in the high 20s, and a net-cash balance sheet [2]. Recent Performance and Market Sentiment - The stock has declined by about one-third recently, with the forward price-to-earnings (P/E) ratio dropping from the mid-20s to around 17x due to a reset in market expectations [3]. - VITAS has faced challenges such as Medicare cap adjustments and management turnover, leading to a significant cut in earnings guidance [3]. Market Outlook - Despite recent setbacks, the hospice market remains attractive due to favorable demographics and Medicare incentives, positioning VITAS for potential revenue growth in the mid- to high-single digits and double-digit operating profit growth in the medium term [3]. - Roto-Rooter is experiencing ongoing challenges from post-COVID normalization and competition, which may limit profitability, but it continues to generate significant cash flow [4]. Valuation Perspective - The current market valuation suggests a pessimistic outlook for VITAS, implying a permanent impairment and minimal future growth potential, which is considered overly negative by analysts [4]. - Chemed's strong free cash flow, disciplined capital returns, and the potential for a valuation rerating as VITAS stabilizes contribute to a favorable risk/reward profile [4].

Core Viewpoint - Chemed Corporation will release its financial results for the fourth quarter ended December 31, 2025, on February 25, 2026, after the market closes [1]. Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast scheduled for 10 a.m. ET on February 26, 2026 [1]. - Participants can access the live webcast through Chemed's investor relations section or a dedicated hosting website [2]. - A taped replay of the conference call will be available approximately two hours after the call concludes [3]. Group 2: Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [4]. - The company operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the U.S., and Roto-Rooter, the leading provider of plumbing and drain cleaning services [4].