Chemed Raises Full-Year Outlook as VITAS Growth Accelerates
The company increased its full-year adjusted EPS guidance to a range of $25.00 to $25.75 [4].
Chemed (CHE) reported a significant acceleration in growth for the second quarter of 2026, driven by a recovery in its healthcare and plumbing services segments. The diversified holding company saw a sharp inflection in both top-line revenue and profitability compared to the start of the year.
Consolidated revenue rose 8.8% year-over-year to $673.3 million. This growth represents a marked increase from the 1.6% rise reported in the first quarter. Adjusted diluted EPS rose 41.9% year-over-year to $6.06, a substantial jump from the 0.4% increase seen in the prior quarter.
The VITAS healthcare segment provided the primary catalyst for the results. Net patient revenue grew 11.9% year-over-year, accelerating from a 3.1% increase in the first quarter. The average daily census increased 6.1% to 23,687, compared to a 2.2% increase in the previous quarter.
Profitability at VITAS also improved as the adjusted EBITDA margin, excluding the Medicare Cap, expanded 196 basis points to 18.2%. This reversed a 41-basis point decline in the first quarter. The Medicare Cap billing limitation fell to $500,000 from $16.4 million in the second quarter of 2025.
Roto-Rooter returned to growth as revenue increased 3.3% year-over-year to $229.9 million, following a 0.9% decrease in the first quarter. Branch commercial revenue grew 6.8%, reversing a 1.9% decline in the prior period. While the adjusted EBITDA margin declined 77 basis points to 21.1%, the contraction was less severe than the 218-basis point decline recorded in the first quarter.
Chemed raised its full-year 2026 adjusted EPS guidance to a range of $25.00 to $25.75, up from the $24.00 to $24.75 range provided in the first quarter.
The company repurchased 210,000 shares for $89.8 million during the second quarter, reducing total shares by approximately 10.5% over the trailing 12 months. In April 2026, Chemed entered into a new five-year $450 million amended and restated credit agreement.