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Chemed
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Latest analysis
Updated Oct 29, 2026
Chemed Q3 2026: VITAS hospice volume surges 9.4%, driving consolidated Adjusted EBITDA margin to 19.4% — a 200bps expansion year-over-year
VITAS delivered a 12.2% revenue increase in Q3 2026, powered by 9.4% days-of-care growth and a $5.3 million reduction in Medicare Cap liability, lifting VITAS gross margin to 25.2% from 22.0% a year ago. Roto-Rooter contributed 7.5% revenue growth but saw after-tax margin compress to 13.0% from 14.8% as marketing, fuel, and acquisition costs rose. Chemed deployed $60.6 million to acquire RotoCo, the largest independent Roto-Rooter franchise, extending its California footprint across ten territories, while simultaneously repurchasing $353.6 million of stock in the nine-month period — funded entirely by revolving credit draws that lifted long-term debt $236 million from year-end 2025.
Tone: bullishRevenue
$2.5B
CHE 10-K · FY 2025
Employees
15,811
Revenue FY2024
$2.4B
Founded
1970
Profile
CHE 10-K Item 1 · Feb 27, 2026Chemed Corporation is a Delaware-based holding company that operates two distinct service businesses: VITAS Healthcare, one of the largest for-profit hospice and palliative care providers in the United States, and Roto-Rooter, a national franchisor and operator of plumbing, drain cleaning, and water restoration services. The company manages its segments on a decentralized basis, with corporate functions limited to capital allocation, financial reporting, and executive selection. Over 90% of VITAS revenue derives from Medicare and Medicaid reimbursement.
Read filing description ↓ Collapse description ↑
Chemed Corporation was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.'s Special Products Group as of April 30, 1971 and remained a subsidiary of W.R. Grace & Co. until March 10, 1982. Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. The Company's day to day operating businesses are managed on a decentralized basis. There are few integrated business functions between the operating units and Chemed (such as sales, marketing or purchasing). Chemed's corporate office management participates in and is ultimately responsible for long term strategic planning, significant capital allocation decisions, investment activities, financial reporting, tax, legal and the selection of the key executives of each of the operating businesses. Since its inception, the Company has engaged in twelve significant acquisitions or divestitures of diverse business units. During 2025, Chemed conducted its business operations in two segments: the VITAS segment ('VITAS') and the Roto-Rooter segment ('Roto-Rooter'). VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. Roto-Rooter provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers.
Primary products
- hospice and palliative care services
- plumbing repair
- drain cleaning
- sewer cleaning
- excavation
- water restoration
Business segments
End markets
Geographies
Named customers
Over 90% of VITAS' revenue is from the United States government through the Medicare program. The loss of a portion or all of our Medicare revenue would have a material adverse effect on the Company.
“VITAS is one of the nation's largest providers of hospice services in an industry dominated primarily by small, community-based hospices.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Consolidated service revenues and sales grew from approximately $2.43 billion in 2024 to approximately $2.53 billion in 2025, driven primarily by growth in the VITAS segment, while Roto-Rooter revenue was essentially flat year over year.
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