Snapshot
Chemed Corp reported $625M of revenue in Q3 2025, up 3.1% year over year, with diluted EPS of $4.46 and an operating margin of 12.0%.
- Revenue
- $625M
- YoY growth
- +3.1%
- Diluted EPS
- $4.46
- Operating margin
- 12.0%
$625M
Revenue
+3.1%
YoY growth
$4.46
Diluted EPS
12.0%
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.
- •Roto-Rooter revenue increased 1.1% in the third quarter of 2025 compared to the same period of 2024.
- •Branch residential and commercial revenue were both encouraging, with increases of 3.4% and 2.8% respectively.
- •Revenue from independent contractors continues to be disappointing, declining 4.7% in the third quarter of 2025.
- •For the first time in several quarters, we saw strength in our residential plumbing revenue service line.
- •Residential plumbing revenue increased 8.2% in the third quarter of 2025 compared to the same period of 2024.
- •A multi-pronged campaign to target selected high-revenue dollar plumbing services yielded positive results in the quarter.
- •While we are paying for more leads, causing some margin pressure, we also believe this trend indicates a potential moderation of competition for leads from our most significant private equity competitors.
- •However, gross margin during the quarter was exactly in line with our guidance.
- •The shift from unpaid leads to paid leads was the main driver of the $3.6 million increase in SG&A costs in the quarter.
- •This led to EBITDA and EBITDA margins to be slightly lower than our expectations for the quarter.
- •While still below our long-term expectations, there are signs that the Roto-Rooter business has stabilized and is on the way to returning to a predictable, sustainable growth trajectory.
SourcesCompany financials · earnings call
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