Snapshot
Chemed Corp reported $658M of revenue in Q1 2026, up 1.6% year over year, with diluted EPS of $4.84 and an operating margin of 12.9%.
- Revenue
- $658M
- YoY growth
- +1.6%
- Diluted EPS
- $4.84
- Operating margin
- 12.9%
$658M
Revenue
+1.6%
YoY growth
$4.84
Diluted EPS
12.9%
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.
- •These factors combined to allow VITAS to achieve higher than expected revenue growth and EBITDA margins while continuing to add cushion to the Medicare cap position in our Florida combined position program.
- •We are more confident than ever that VITAS has put the Florida cap issue of 2025 behind us and has returned to a normalized rate of growth.
- •For the first time since the fourth quarter of 2022, residential plumbing and residential sewer and drain revenue both increased during the quarter.
- •We consider these Roto-Rooter's core services, which drive the add-on revenue from excavation and water restoration.
- •Driving the increase in core residential service revenue was an increase in total leads of 3.3%.
- •The change of approximately 7% required Roto-Rooter to increase marketing spend by almost $3 million in the quarter, compared to the first quarter of 2025.
- •We estimate that these service disruptions resulted in a net lost revenue of between $3 million and $4 million during the quarter.
- •These two acquisitions are anticipated to add between $5 million and $5.5 million of revenue for the remainder of 2026.
- •However, initially, growth, gross margins, EBITDA margins, pricing, and mix of service offerings tend to be below the average of our existing Roto-Rooter portfolio.
- •VITAS net revenue was $420 million in the first quarter of 2026, which is an increase of 3.1% when compared to the prior-year period.
- •This revenue increase is the result of a 2.2% increase in days of care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%.
SourcesCompany financials · earnings call
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