Chemed reported second-quarter 2026 consolidated revenue of $673.3 million and GAAP diluted EPS of $5.13, driven by VITAS' stronger-than-expected performance. Adjusted diluted EPS for the quarter was $6.06, and the company raised its full-year 2026 adjusted EPS guidance to $25.00–$25.75. Management cited VITAS growth and ongoing share repurchases as primary drivers of the guidance increase.

Financial Highlights

  • Revenue: Consolidated service revenues and sales of $673.3 million for Q2 2026, up 8.8% year-over-year.
  • Gross profit and margin: (Gross profit not separately presented; consolidated cost of services provided and goods sold was $451.78 million for Q2 2026.)
  • Operating income: Income from operations of $89.2 million for Q2 2026 versus $68.1 million in Q2 2025.
  • Net income: Net income of $67.7 million for Q2 2026 versus $52.5 million in Q2 2025.
  • Adjusted Diluted EPS: Adjusted diluted EPS of $6.06 for Q2 2026 (reported diluted EPS $5.13); full-year 2026 adjusted diluted EPS guidance raised to $25.00–$25.75.

Business Highlights

  • VITAS momentum: VITAS net patient revenue was $443.3 million in Q2 2026, an 11.9% increase year-over-year, with average daily census up 6.1% to 23,687 and admissions up 9.0%.
  • Medicare Cap impact: VITAS recorded a $0.5 million Medicare Cap billing limitation in Q2 2026 versus $16.4 million in Q2 2025; of 33 Medicare provider numbers, 22 have a full-year cushion ≥10% while four have a Medicare Cap billing limitation totaling $7.0 million.
  • Roto-Rooter operations: Roto-Rooter revenue was $229.9 million in Q2 2026, up 3.3% year-over-year; branch commercial and residential channels both showed growth with commercial up 6.8% and residential up 1.7%.
  • Margins and segment profitability: VITAS adjusted EBITDA excluding Medicare Cap was $80.6 million with an adjusted EBITDA margin of 18.2% (up 196 bps); Roto-Rooter adjusted EBITDA was $48.5 million with a 21.1% margin (down 77 bps).
  • Capital allocation and liquidity: Chemed entered a five-year $450 million revolving credit facility (with $250 million expansion feature) in April 2026 and repurchased 210,000 shares for $89.8 million during the quarter, reducing diluted shares and leaving ~$139.8 million remaining repurchase authorization as of June 30, 2026.

Original SEC Filing:

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