Q1 2026 Chemed Corp Earnings Call Transcript
Key Points
- VITAS's performance exceeded expectations, with a 6.9% improvement in admissions compared to the same period in 2025.
- Roto-Rooter saw an increase in residential plumbing and sewer and drain revenue for the first time since Q4 2022.
- Chemed Corp (CHE) repurchased franchises in San Francisco and Fort Worth, expected to add $5 million to $5.5 million in revenue for 2026.
- VITAS achieved higher-than-expected revenue growth and EBITDA margins while maintaining lower hospice labor costs.
- Chemed Corp (CHE) increased its full-year ADC growth projections for 2026 to a range of 4.5% to 5.5%.
- Roto-Rooter faced significant service disruptions due to unusual ice and snow storms, resulting in a net revenue loss of $3 million to $4 million.
- Increased marketing costs for Roto-Rooter, driven by changes in Google algorithms, led to higher expenses.
- Roto-Rooter's adjusted EBITDA margin declined by 218 basis points compared to Q1 2025, primarily due to elevated marketing costs.
- Revenue from independent contractors declined by 3.3% in Q1 2026 compared to the same period in 2025.
- VITAS's revenue growth was negatively impacted by an acuity mix shift and Medicare Cap billing limitations.
Good day, and thank you for standing by. Welcome to the Chemed Corp first quarter 2026 earnings conference call. At (Operator Instructions) Please be advised that today's call is being recorded.
I would now like to hand it over to our first speaker, Holley Schmidt, [Assistant Control]. Please go ahead.
Good morning. Our conference call this morning will review the financial results for the first quarter of 2026 ended March 31, 2026. Before we begin, let me remind you that the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 applies to this conference call. During the course of this call, the company will make various remarks concerning management's expectations, predictions, plans and prospects that constitute forward-looking statements.
Actual results may differ materially from those projected by these forward-looking statements as a result of a variety of factors, including those identified in the company's news release of April and in various other filings with
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