third quarter 2026
Filed Oct 27, 2026Chemed Reports Third-Quarter 2026 Results
Consolidated revenue increased 10.6%, GAAP diluted EPS increased 22.2%, and adjusted diluted EPS increased 28.1%, led by VITAS revenue, census and adjusted EBITDA growth. Roto-Rooter revenue grew, but its adjusted EBITDA and margin declined amid higher selling, general and administrative expenses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Service revenues and sales, three months ended September 30GAAP | $690.9M | – | 10.6% |
| Cost of services provided and goods sold, three months ended September 30GAAP | 457,978 | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | 111,469 | – | – |
| Depreciation, three months ended September 30GAAP | 14,427 | – | – |
| Amortization, three months ended September 30GAAP | 2,974 | – | – |
| Other operating expense, three months ended September 30GAAP | 7,670 | – | – |
| Income from operations, three months ended September 30GAAP | 96,422 | – | – |
| Interest expense, three months ended September 30GAAP | (2,097) | – | – |
| Income before income taxes, three months ended September 30GAAP | 96,708 | – | – |
| Income taxes, three months ended September 30GAAP | (25,060) | – | – |
| Net income, three months ended September 30GAAP | $71.65M | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $ 5.45 | – | 22.2% |
| Adjusted net income, three months ended September 30non-GAAP | $88.72M | – | – |
| Adjusted diluted earnings per share, three months ended September 30non-GAAP | $ 6.75 | – | 28.1% |
| Consolidated adjusted EBITDA, three months ended September 30non-GAAP | $133.8M | – | – |
| Service revenues and sales, nine months ended September 30GAAP | $2.02B | – | – |
| Income from operations, nine months ended September 30GAAP | 270,204 | – | – |
| Net income, nine months ended September 30GAAP | $205.7M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $ 15.43 | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $246.1M | – | – |
| Adjusted diluted earnings per share, nine months ended September 30non-GAAP | $ 18.47 | – | – |
| Consolidated adjusted EBITDA, nine months ended September 30non-GAAP | $371.8M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | 229,622 | – | – |
| Capital expenditures, nine months ended September 30GAAP | (51,355) | – | – |
| Net cash used by investing activities, nine months ended September 30GAAP | (147,419) | – | – |
| Net cash used by financing activities, nine months ended September 30GAAP | (108,291) | – | – |
| Cash and cash equivalents, September 30GAAP | $48.43M | – | – |
| Long-term debt, September 30GAAP | 236,000 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| VITASThe revenue increase was comprised primarily of a 9.4% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%. The combination of Medicare Cap and other contra revenue changes positively impacted revenue growth by 85-basis points. | $457.4M | – | 12.2% |
| Roto-RooterBranch commercial revenue totaled $59.9 million and increased 9.0%, while branch residential revenue totaled $158.8 million and increased 5.2%. Revenue from independent contractors was $16.9 million and was flat compared to the same period of 2025. | $233.5M | – | 7.5% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full-year 2026 outlook
- NoteThe Company estimates that it will be at or slightly above the high-end of its full-year 2026 adjusted EPS guidance issued in conjunction with its July 28, 2026 press release.
Capital returns
- During the quarter, the Company repurchased 125,000 shares of Chemed stock for $66.0 million, which equates to a cost per share of $528.24.
- Over the trailing 12-months, the Company repurchased 1,235,000 shares of Chemed stock at an average price of $427.62 per share.
- As of September 30, 2026, there was approximately $73.7 million of remaining share repurchase authorization under the Company’s plan.
- Purchases of treasury stock for the nine months ended September 30, 2026 were (350,042), compared with (256,944) for the nine months ended September 30, 2025.
- Dividends paid for the nine months ended September 30, 2026 were (25,234), compared with (23,196) for the nine months ended September 30, 2025.
What drove it
- VITAS average daily census was 24,428, an increase of 9.4%, and total admissions were 18,995, an increase of 7.2%.
- VITAS average revenue per patient per day was $209.11, 196-basis points above the prior-year period. Routine home care and high-acuity care reimbursement averaged $187.69 and $1,147.26, respectively.
- VITAS adjusted EBITDA excluding Medicare Cap was $92.5 million, an increase of 31.4%, and adjusted EBITDA margin excluding Medicare Cap was 20.2%, an increase of 318-basis points.
- VITAS accrued $828,000 in Medicare Cap billing limitation, compared with $6.1 million in the third quarter of 2025.
- Roto-Rooter branch commercial revenue was $59.9 million, with plumbing increasing 10.6%, drain cleaning increasing 6.8%, excavation increasing 5.5% and water restoration increasing 30.7%.
- Roto-Rooter branch residential revenue was $158.8 million, with excavation increasing 7.8%, plumbing increasing 5.9%, water restoration increasing 6.2% and drain cleaning increasing 4.5%.
- Roto-Rooter re-acquired multiple franchise territories in California for approximately $62.5 million. Slightly over half of the revenue associated with acquired territories will become part of owned and operated branch locations.
Concerns
- Roto-Rooter adjusted EBITDA was $48.2 million, a decline of 2.5%, and adjusted EBITDA margin was 20.6%, a decline of 213-basis points.
- Roto-Rooter gross margin was 50.3%, compared with 50.7% in the prior-year quarter.
- Roto-Rooter selling, general and administrative expenses were $71.0 million, an increase of 17.1% compared to the third quarter of 2025.
- VITAS acuity mix shift negatively impacted revenue growth by 25-basis points.
- Five VITAS Medicare provider numbers have a Medicare Cap billing limitation totaling $6.1 million.
- Estimated uncollectible accounts as a percent of VITAS revenues was 1.2%, compared with 0.9% in the prior-year quarter.
What to watch
- Whether Chemed delivers at or slightly above the high-end of its full-year 2026 adjusted EPS guidance.
- VITAS Medicare Cap billing limitation, including the Company’s statement that none is anticipated for the 2026 fiscal period for the Florida combined program.
- VITAS census, admissions, days-of-care and reimbursement trends, including high-acuity days-of-care of 2.2% of total days of care.
- Roto-Rooter margin performance following the 17.1% increase in selling, general and administrative expenses and the California territory acquisitions.
- Integration of the acquired California territories, including the establishment of new branches in Sacramento and San Diego.
Balance sheet and cash flow
- As of September 30, 2026, Chemed had total cash and cash equivalents of $48.4 million and $236.0 million in long-term debt.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was 229,622, compared with 254,739 for the nine months ended September 30, 2025.
- Business combinations, net of cash acquired, for the nine months ended September 30, 2026 were (96,050), compared with (225) for the nine months ended September 30, 2025.
- In April 2026, Chemed entered into a new five-year $450 million Amended and Restated Credit Agreement consisting of a $450 million revolving line of credit and a $250 million expansion feature.
- There is approximately $166.7 million undrawn borrowing capacity under the Credit Agreement after excluding $47.3 million for Letters of Credit.
Analysis
Chemed reported broad third-quarter growth, with consolidated service revenues and sales of $690.9 million, up 10.6%, and GAAP diluted EPS of $5.45, up 22.2%. Adjusted diluted EPS was $6.75, up 28.1%. Net income was $71.648 million versus $64.237 million in the prior-year quarter, while consolidated adjusted EBITDA was $133.785 million versus $109.045 million. For the nine months ended September 30, service revenues and sales were $2.021704 billion and GAAP diluted EPS was $15.43.
VITAS was the primary operating contributor. Net patient revenue was $457.4 million, up 12.2%, supported primarily by a 9.4% increase in days-of-care and an approximately 2.2% geographically weighted average Medicare reimbursement rate increase. ADC increased 9.4% to 24,428 and admissions increased 7.2% to 18,995. VITAS adjusted EBITDA excluding Medicare Cap was $92.5 million, up 31.4%, while its adjusted EBITDA margin excluding Medicare Cap increased 318-basis points to 20.2%. The Medicare Cap accrual declined to $828,000 from $6.1 million.
Roto-Rooter delivered revenue growth but weaker profitability. Revenue increased 7.5% to $233.5 million, with commercial branch revenue up 9.0% and residential branch revenue up 5.2%. However, gross margin was 50.3% compared with 50.7%, selling, general and administrative expenses increased 17.1% to $71.0 million, adjusted EBITDA declined 2.5% to $48.2 million, and adjusted EBITDA margin declined 213-basis points to 20.6%. The Company also re-acquired California franchise territories for approximately $62.5 million, creating an integration and branch-expansion focus.
Capital deployment included $66.0 million of third-quarter repurchases for 125,000 shares and $350.042 million of treasury-stock purchases during the first nine months. Chemed ended the quarter with $48.4 million in cash and cash equivalents and $236.0 million in long-term debt. Nine-month operating cash flow was 229,622, below 254,739 in the prior-year period, while business combinations, net of cash acquired, were (96,050). Management expects to be at or slightly above the high-end of its full-year 2026 adjusted EPS guidance, but did not provide a numerical adjusted EPS range in this release.
Not in the filing
stated, not guessed- Numerical full-year 2026 adjusted EPS guidance range was not provided in the filing text.
- Prior-release outlook was not provided, so no comparison of reported results with prior guidance is available.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend per share was not reported.
- No named executive quotes were included in the filing text.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.