Snapshot
Chemed Corp reported $619M of revenue in Q2 2025, up 3.8% year over year, with diluted EPS of $3.57 and an operating margin of 11.0%.
- Revenue
- $619M
- YoY growth
- +3.8%
- Diluted EPS
- $3.57
- Operating margin
- 11.0%
$619M
Revenue
+3.8%
YoY growth
$3.57
Diluted EPS
11.0%
Operating margin
01 Key takeaways
What management said
- •In addition, management may also discuss non-GAAP operating performance results during today's call, including earnings before interest, taxes, depreciation, and amortization, or EBITDA and adjusted EBITDA.
- •While the performance of both operating units did not meet our expectations for the second quarter of 2025, we remain confident in the overall fundamentals, growth potential, and strategic direction of both businesses.
- •However, it is important to remember that over 600 patients transferred into VITAS in the second quarter of 2024 as a result of our April 2024 acquisition of Covenant Health.
- •Our average daily census, or ADC, expanded to 22,318, an increase of 6.1% when compared to the prior year quarter.
- •The detailed rate information related to the reimbursement increase in Florida for the 2026 cap year will become available during the third quarter.
- •We intend to update our assumptions regarding rates and overall outlook for the 2026 Medicare cap year in Florida in the third quarter earnings release.
- •Roto-Rooter revenue increased 0.6% in the second quarter of 2025 compared to the same period of 2024, falling short of our internal expectations.
- •Branch revenue, in particular, was softer than anticipated, with less than 1% growth compared to the prior year.
- •We continue to execute on the strategies implemented in 2024 that resulted in improved fourth quarter of 2024 and the first quarter of 2025 revenue trends.
- •June and July residential revenue has rebounded to a level that is much closer to our internal expectations.
- •This will cause some disruption in VITAS' operating metrics but positions them to return to a consistent higher growth rate for the long term.
- •We remain confident that the competitive advantages enjoyed by Roto-Rooter will return its financial performance to a steadier growth trajectory.
SourcesCompany financials · earnings call
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