Chemed (CHE) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
Chemed (CHE) reported its Q4 2025 earnings call, highlighting mixed performance across its key divisions. VITAS Healthcare showed steady growth, with admissions rising 6% year-over-year, driven by hospital-based short-stay admissions. However, the adjusted EBITDA margin declined by 79 basis points to 21.7%, reflecting a shift in patient mix and higher Medicare reimbursement rates. Despite this, VITAS achieved its target for Florida market stability and saw a significant reduction in Medicare cap liability, improving its financial outlook.
Meanwhile, Roto-Rooter faced challenges, with revenue dropping 3.7% year-over-year due to declines in both residential and commercial segments. The water restoration division particularly struggled, experiencing a 10.3% drop in residential branch revenue. Operational issues like increased write-offs—up $11 million compared to the previous quarter—and higher marketing costs further impacted profitability, leading to a 21.1% year-over-year decline in adjusted EBITDA.
Chemed provided guidance for 2026, forecasting VITAS revenue growth of 5.5%-6.5% and an expected EBITDA margin of 17.5%-18%. Roto-Rooter is projected to grow by 3%-3.5% with a target adjusted EBITDA margin of 22.5%-23%. The company also emphasized its
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Originally published on The Motley Fool on 2/26/2026