Chemed Q4 Earnings Call Highlights

Management cites short-stay mix at VITAS and water restoration issues at Roto-Rooter

Published on Feb. 28, 2026

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Chemed (NYSE:CHE) executives said the company's fourth-quarter 2025 results came in below expectations at both VITAS Healthcare and Roto-Rooter, but management laid out steps it believes will improve performance through 2026, with a heavier earnings contribution expected in the second half of the year.

Why it matters

Chemed's two main business segments, VITAS Healthcare and Roto-Rooter, are important providers of essential home services and healthcare solutions in the United States. The company's fourth-quarter performance and outlook provide insights into the challenges and opportunities facing these businesses.

The details

At VITAS, admissions totaled 17,419 in the quarter, up 6% from the same period in 2024. However, the company has been tracking the share of admissions sourced from hospitals in Florida, aiming for a 'balance for sustained long-term stability' of 42% to 45%. In the fourth quarter, that ratio reached 44.8%, which the company described as a post-pandemic high. This shift towards more hospital-based, short-stay patients pressured revenue growth and margins. At Roto-Rooter, revenue declined 3.7% in the fourth quarter, with executives citing rising water restoration write-offs as a major issue.

  • In the fourth quarter of 2025, VITAS admissions totaled 17,419, up 6% from the same period in 2024.
  • In mid-January 2026, VITAS began shifting admissions back toward a more balanced mix between hospital and other pre-admission locations.
  • At the end of the fourth quarter of 2025, the Florida combined program's Medicare cap billing limitation was less than $2 million, and as of the end of January 2026 there was no billing limitation in the Florida combined program.

The players

Chemed

A diversified provider of essential home services and healthcare solutions in the United States, headquartered in Cincinnati, Ohio. Chemed operates through two principal business segments—Roto-Rooter and Vitas Healthcare.

VITAS Healthcare

A subsidiary of Chemed that provides hospice and palliative care services.

Roto-Rooter

A subsidiary of Chemed that offers a comprehensive suite of plumbing, drain cleaning and water restoration services.

Kevin McNamara

President and CEO of Chemed.

Michael Witzeman

Chief Financial Officer of Chemed.

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