Chemed (CHE) Q2 2026 earnings summary

Executive summary

• Service revenues and sales rose 8.8% year-over-year to $673.3 million in Q2 2026, driven by 11.9% growth at VITAS and 3.3% at Roto-Rooter, with net income up 29% to $67.7 million and adjusted diluted EPS up 41.9% to $6.06.

• VITAS exceeded expectations with strong admissions growth, higher days-of-care, and lower labor costs, resolving prior Medicare Cap issues in Florida.

• Roto-Rooter performed as anticipated, with commercial sales and water restoration collections surpassing expectations, though marketing costs and independent contractor business remain challenging.

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

Financial highlights

• VITAS net revenue was $443.3 million, up 11.9% year-over-year, driven by a 6.1% increase in days of care and a 2.4% Medicare reimbursement rate increase.

• Adjusted EBITDA for VITAS (excluding Medicare Cap) was $80.6 million, up 20.6% year-over-year, with an 18.2% margin.

• Roto-Rooter Q2 revenue rose 3.3% to $229.9 million; adjusted EBITDA was $48.5 million, flat year-over-year, with a 21.1% margin.

• Consolidated cash flow from operations exceeded $173 million in Q2 2026.

• Adjusted net income for Q2 2026 was $80.0 million, up from $62.7 million in Q2 2025.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $25.00–$25.75, a 17.8% increase from 2025.

• VITAS full-year ADC growth guidance increased to 5.75%–6.25%; revenue growth (ex-Medicare Cap) to 8.25%–9.25%; EBITDA margin (ex-Medicare Cap) to 19%–19.5%.

• Roto-Rooter full-year revenue growth expected at 3%–3.5%, with adjusted EBITDA margin of 21.5%–22.5%.