Chemed Q4: VITAS Revenue +1.9%, Roto-Rooter Write-Offs Surge 57%
VITAS admitted 17,419 patients in Q4 (up 6%), driving net revenue of $418.8M (+1.9%) but margin compression from hospital-based short-stay cases. Roto-Rooter’s revenue declined 3.7% with water-restoration write-offs up 57% ($4M); Chemed forecasts 2026 revenue growth of 5.5%–6.5% at VITAS, 3%–3.5% at Roto-Rooter, and adjusted EPS of $23.25–$24.25.
1. Q4 Earnings Overview
Chemed’s Q4 2025 results missed expectations at both subsidiaries, with VITAS revenue growth pressured by a higher share of hospital admissions and Roto-Rooter hit by insurer-driven water-restoration write-offs. Management repurchased 400,000 shares during the quarter.
2. VITAS Healthcare Details
Admissions rose 6% to 17,419, lifting net revenue 1.9% to $418.8 million, while hospital-based, short-stay patients reduced adjusted EBITDA margin by 79 basis points. Medicare cap billing limitations totaled $2.4 million, and average revenue per patient day increased to $288.01.
3. Roto-Rooter Performance
Revenue declined 3.7% with residential down 3.1% and commercial up 1.6%; water-restoration write-offs jumped 57% ($4 million), dragging adjusted EBITDA down 21.1% to $47.5 million. Centralization of water-restoration billing and documentation technology investments aim to curb write-offs, with benefits slated for H2 2026.
4. 2026 Outlook and Guidance
Chemed projects VITAS revenue growth of 5.5%–6.5% (ADC +3.5%–4%) and Roto-Rooter growth of 3%–3.5%, targeting consolidated adjusted EPS of $23.25–$24.25. Approximately 55% of adjusted EBITDA and net income are expected in the second half of 2026.