Chemed earnings rose in the third quarter of 2026 as growth at its VITAS hospice business helped lift revenue and adjusted profit. The company said it expects full-year adjusted earnings per share to be at or slightly above the high end of its earlier guidance.

Key Takeaways

  • Third-quarter revenue rose 10.6% to $690.9 million, while adjusted diluted earnings per share increased 28.1% to $6.75.
  • VITAS revenue increased 12.2%, while Roto-Rooter revenue rose 7.5% even as its adjusted EBITDA declined.
  • Roto-Rooter reacquired California franchise territories for approximately $62.5 million.

Chemed earnings and VITAS growth

For the quarter ended September 30, GAAP diluted earnings per share rose 22.2% to $5.45. Adjusted diluted earnings per share, a non-GAAP measure, increased to $6.75. Chemed released the results on October 27.

VITAS net patient revenue reached $457.4 million. Chemed attributed the increase primarily to a 9.4% rise in days of care and an approximately 2.2% geographically weighted increase in Medicare reimbursement rates. Admissions increased 7.2%, and the average daily census rose 9.4% to 24,428.

VITAS accrued $828,000 for the Medicare Cap billing limitation in the quarter, compared with $6.1 million in the third quarter of 2025. The Medicare hospice aggregate cap limits the overall payments made to a hospice annually. VITAS adjusted EBITDA excluding the cap rose 31.4% to $92.5 million.

Roto-Rooter revenue rises as margin declines

Roto-Rooter revenue increased to $233.5 million, but adjusted EBITDA fell 2.5% to $48.2 million. Its adjusted EBITDA margin declined 213 basis points to 20.6%. Selling, general and administrative expenses rose 17.1% to $71.0 million.

The plumbing and drain cleaning business reacquired several California franchise territories covering more than 12 million people. Chemed said two new branches would be established in Sacramento and San Diego, while other territories would be absorbed by existing branches or operate under an independent contractor model.

Full-year outlook and balance sheet

Chemed said its full-year 2026 adjusted earnings per share would be at or slightly above the high end of the guidance issued in July. It did not provide a new numerical range in the announcement.

At September 30, the company had $48.4 million in cash and cash equivalents and $236.0 million in long-term debt. It repurchased 125,000 shares for $66.0 million during the quarter, leaving approximately $73.7 million under its repurchase authorization.

Next milestone

Chemed scheduled an earnings call for October 28, 2026, to discuss the results and provide further operational detail.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.