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CHEMED CORP (CHE)

CIK: 0000019584. SIC: 8082 Services-Home Health Care Services. Latest 10-K as of: 2026-02-27.

SIC breadcrumb: Services > SIC Major Group 80 > SIC 8082 Services-Home Health Care Services

SEC company page: https://www.sec.gov/edgar/browse/?CIK=19584. Latest filing source: 0001562762-26-000020.

Selected Fundamentals

MetricValueUnitFYFiled
Revenue2,529,978,000USD20252026-02-27
Net income265,238,000USD20252026-02-27
Assets1,538,189,000USD20252026-02-27

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000019584.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Metric2016201720182019202020212022202320242025
Revenue1,576,881,0001,666,724,0001,782,648,0001,938,555,0002,079,583,0002,139,261,0002,134,963,0002,264,417,0002,431,287,0002,529,978,000
Net income108,743,00098,177,000205,544,000219,923,000319,466,000268,550,000249,624,000272,509,000301,999,000265,238,000
Operating income178,749,000113,035,000243,632,000257,380,000389,680,000343,038,000343,496,000340,569,000366,493,000338,246,000
Diluted EPS6.485.8612.2313.3119.4816.8516.5317.9319.8918.34
Assets880,059,000920,026,000975,529,0001,268,317,0001,434,911,0001,342,723,0001,442,012,0001,668,095,0001,668,575,0001,538,189,000
Liabilities355,960,000379,672,000384,195,000541,709,000533,711,000719,450,000643,297,000560,219,000549,582,000558,784,000
Stockholders' equity524,099,000540,354,000591,334,000726,608,000901,200,000623,273,000798,715,0001,107,876,0001,118,993,000979,405,000
Cash and cash equivalents15,310,00011,121,0004,831,0006,158,000162,675,00032,895,00074,126,000263,958,000178,350,00074,515,000
Net margin6.90%5.89%11.53%11.34%15.36%12.55%11.69%12.03%12.42%10.48%
Operating margin11.34%6.78%13.67%13.28%18.74%16.04%16.09%15.04%15.07%13.37%

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000019584.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

QuarterEnd DateRevenueNet IncomeDiluted EPSMethod
2022-Q22022-06-304.40reported discrete quarter
2022-Q32022-09-303.78reported discrete quarter
2023-Q12023-03-313.58reported discrete quarter
2023-Q22023-06-30553,816,00053,377,0003.51reported discrete quarter
2023-Q32023-09-30564,532,00074,958,0004.93reported discrete quarter
2023-Q42023-12-31585,912,00090,053,000derived Q4 = FY annual - nine-month YTD
2024-Q12024-03-31589,233,00065,017,0004.24reported discrete quarter
2024-Q22024-06-30595,880,00070,887,0004.65reported discrete quarter
2024-Q32024-09-30606,181,00075,776,0005.00reported discrete quarter
2024-Q42024-12-31639,993,00090,319,000derived Q4 = FY annual - nine-month YTD
2025-Q12025-03-31646,943,00071,757,0004.86reported discrete quarter
2025-Q22025-06-30618,798,00052,493,0003.57reported discrete quarter
2025-Q32025-09-30624,900,00064,237,0004.46reported discrete quarter
2025-Q42025-12-31639,337,00076,751,000derived Q4 = FY annual - nine-month YTD
2026-Q12026-03-31657,513,00066,302,0004.84reported discrete quarter

Quarterly Charts

Macro Cross-References

Latest quarter (10-Q)

Latest 10-Q source: 0000019584-26-000012.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-28. Report date: 2026-03-31.

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

We operate through our two wholly-owned subsidiaries, VITAS Healthcare Corporation and Roto-Rooter Group, Inc. VITAS focuses on hospice care that helps make terminally ill patients’ final days as comfortable as possible. Through its teams of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter’s services are focused on providing plumbing, drain cleaning, excavation, water restoration, and other related services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing and drain cleaning service to over 90% of the U.S. population.

The vast majority of the Company’s operations are located in the United States. As both operations are service companies, our employees are the most critical resource of the Company. We have very little exposure related to customers, vendors, or employees in other regions of the world. We continue to monitor macroeconomic trends and uncertainties such as inflation, the effects of recently implemented tariffs, and the potential imposition of modified or additional tariffs, as well as the impact of the war with Iran on fuel prices, which may have adverse effects on net sales and profitability. Based on preliminary analysis of the potential effects of the announced tariffs and these other factors, we do not expect a material negative effect on our net sales or profitability for the remainder of fiscal year 2026. However, we are continuing to evaluate these factors and their potential effects as well as our ability to potentially offset all or a portion of cost increases through pricing actions and cost savings efforts for fiscal year 2027 planning. Economic pressures including the challenges of high inflation and the effects of increased tariffs and the impact of the war with Iran may negatively affect our net sales and profitability in the future.

The following is a summary of the key operating results (in thousands except per share amounts):

Three months ended March 31,

2026

2025

Service revenues and sales

$

657,513 

$

646,943 

Net income

$

66,302 

$

71,757 

Diluted EPS

$

4.84 

$

4.86 

Adjusted net income

$

77,383 

$

83,074 

Adjusted diluted EPS

$

5.65 

$

5.63 

Adjusted EBITDA

$

116,257 

$

121,692 

Adjusted EBITDA as a % of revenue

17.7 

%

18.8 

%

Adjusted net income, adjusted diluted EPS, earnings before interest, taxes and depreciation and amortization (“EBITDA”), Adjusted EBITDA and Adjusted EBITDA as a percent of revenue are not measures derived in accordance with US GAAP. We provide non-GAAP measures to help readers evaluate our operating results and to compare our operating performance with that of similar companies that have different capital structures. Our non-GAAP measures should not be considered in isolation or as a substitute for comparable measures presented in accordance with GAAP. A reconciliation of our non-GAAP measures is presented on pages 28-29.

For the three months ended March 31, 2026, the increase in consolidated service revenues and sales was driven by a 3.1% increase at VITAS offset by a 0.9% decrease at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of 2.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes decreased revenue growth by 47-basis points.

The decline in service revenues at Roto-Rooter was driven by a 1.9% decrease in commercial revenue and a 1.5% decrease in residential revenue.

Financial Condition

Liquidity and Capital Resources

Material changes in the balance sheet accounts from December 31, 2025 to March 31, 2026 include the following:

A $32.9 million increase in accounts receivable due to the timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $62.0 million from the Federal government for hospice services

-21-

every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.

A $20.5 million increase in goodwill due to the two acquisitions at Roto-Rooter.

A $23.3 million increase in income taxes payable due to timing of payments.

A $91.2 million increase in long-term debt due primarily to the acquisitions and stock repurchases.

A $201.1 million increase in treasury stock due to stock repurchases.

Net cash provided by operating activities increased $55.5 million from March 31, 2025 to March 31, 2026. See the Unaudited Consolidated Statements of Cash Flow on page 5 for the detail components making up the change.

Management continually evaluates cash utilization alternatives, including share repurchase, debt repurchase, acquisitions and increased dividends to determine the most beneficial use of available capital resources.

We anticipate that our operating income and cash flows will be sufficient to operate our business and meet any commitments for the foreseeable future.

Commitments and Contingencies

On April 10, 2026, we replaced the Prior Credit Agreement with a sixth amended and restated Credit Agreement. Terms of the Credit Agreement consist of a five-year $450.0 million revolving credit facility including $100.0 million for letters of credit. The interest on this Credit Agreement has a floating interest rate that is generally the secured overnight financing rate (“SOFR”) plus an additional tiered rate which varies based on our current leverage ratio. As of March 31, 2026, the interest rate is SOFR plus 100 basis points. The Credit Agreement includes an expansion feature that provides the Company the opportunity to increase its revolver by an additional $250.0 million.

We have issued $45.5 million in standby letters of credit as of March 31, 2026 under the Prior Credit Agreement, which has continued under the Credit Agreement mainly for insurance purposes. Issued letters of credit reduce our available credit under the Credit Agreement. As of March 31, 2026, we have approximately $313.3 million of unused lines of credit available and are eligible to be drawn down under the Prior Credit Agreement. Management believes its liquidity and sources of capital are satisfactory for the Company’s needs in the foreseeable future.

Collectively, the terms of the Credit Agreement require us to meet various financial covenants, to be tested quarterly. We were in compliance with all financial and other debt covenants as of March 31, 2026 under the Prior Credit Agreement and anticipate remaining in compliance under the Credit Agreement throughout the foreseeable future.

We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.

See Note 10 in the Notes to the Unaudited Consolidated Financial Statements in Item 1 above for a description of current material legal matters.

‎

-22-

Results of Operations

Three months ended March 31, 2026 versus 2025 - Consolidated Results

Our service revenues and sales for the first quarter of 2026 increased 1.6% versus services and sales revenues for the first quarter of 2025. Of this increase, a $12.6 million increase was attributable to VITAS, offset by a $2.0 million decrease at Roto-Rooter. The following chart shows the components of revenue by operating segment (in thousands):

Three months ended March 31,

Increase/(Decrease)

2026

2025

Percent

VITAS

Routine homecare

$

371,091 

$

351,566 

5.6 

General inpatient

35,925 

34,022 

5.6 

Continuous care

18,133 

24,637 

(26.4)

Other

5,578 

5,344 

4.4 

Subtotal

430,727 

415,569 

3.6 

Medicare cap adjustment

(2,375)

(2,325)

(2.2)

Room and board - net

(3,257)

(3,525)

7.6 

Implicit price concessions

(5,077)

(2,319)

(118.9)

Net revenue

$

420,018 

$

407,400 

3.1 

Roto-Rooter

Drain cleaning

$

59,735 

$

59,542 

0.3 

Plumbing

49,584 

46,059 

7.7 

Excavation

63,510 

64,239 

(1.1)

Other

229 

186 

23.1 

Subtotal - short term core

173,058 

170,026 

1.8 

Water restoration

47,848 

54,163 

(11.7)

Independent contractors

17,765 

18,362 

(3.3)

Outside franchisee fees

1,521 

1,424 

6.8 

Other

5,089 

4,895 

4.0 

Gross revenue

245,281 

248,870 

(1.4)

Implicit price concessions

(7,786)

(9,327)

16.5 

Net revenue

237,495 

239,543 

(0.9)

Total Revenues

$

657,513 

$

646,943 

1.6 

Days of care at VITAS during the quarters were as follows:

Three months ended March 31,

Increase/(Decrease)

2026

2025

Percent

Routine homecare

1,691,619 

1,632,569 

3.6 

Nursing home

294,818 

307,108 

(4.0)

Respite

10,875 

9,995 

8.8 

Subtotal routine homecare and respite

1,997,312 

1,949,672 

2.4 

General inpatient

30,474 

29,704 

2.6 

Continuous care

17,288 

22,620 

(23.6)

Total days of care

2,045,074 

2,001,996 

2.2 

The increase in service revenues at VITAS is comprised primarily of 2.2% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%. Acuity mix shift negatively impacted revenue growth by 120-basis points in the quarter when compared to the prior year revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes decreased revenue growth by 47-basis points.

The increase in plumbing revenues for the first quarter of 2026 versus 2025 is attributable to a 14.1% increase in price and service mix shift offset by a 6.4% decrease in job count. The increase in drain cleaning revenues for the first quarter of 2026 versus 2025 is attributable to a 12.3% increase in price and service mix offset by a 12.0% decrease in job count. Excavation revenues decreased

-23-

1.1%, water restoration revenues decreased 11.7%, and contractors operations decreased 3.3%. Implicit price concessions and credit memos decreased 16.5% mainly related to the water restoration business.

The consolidated gross margin was 32.8% in the first quarter of 2026 as compared with 33.5% in the first quarter of 2025. On a segment basis, VITAS’ gross margin was 22.5% in the first quarter of 2026 as compared with 23.2% in the first quarter of 2025. The decline is related to an increase in variable patient care expenses in the first quarter of 2026 compared to the first quarter of 2025. The Roto-Rooter segment’s gross margin was 51.0% for the first quarter of 2026 which was essentially flat with the first quarter of 2025.

Selling, general and administrative expenses (“SG&A”) comprise (in thousands):

Three mon

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Low-confidence quarantine: Item 7 boundaries were not detected after HTML sanitization. Confidence: low. Filing date: 2026-02-27. Report date: 2025-12-31.

MD&A text quarantined because Item 7 boundaries were low-confidence. No filing narrative is emitted for this company until the parser is reviewed.