Chemed Corp reported strong second-quarter 2026 results, driven by its Vitas hospice segment exceeding expectations with accelerated admissions and lower-than-budgeted labor costs. Vitas's performance boosted revenue growth and EBITDA margins, while Roto Rooter saw a 6.8% increase in commercial revenue and improved collections from centralized water restoration billing. However, Roto Rooter faced a 1.6% decline in total leads, a 6.7% drop in water restoration revenue, and a 77-basis-point decline in adjusted EBITDA margin due to higher internet marketing costs. The company generated over $173 million in cash flow from operations, enabling strategic acquisitions and aggressive share repurchases. Management expressed confidence in sustaining Vitas's growth rates into 2027 and is working to reduce Roto Rooter's reliance on paid leads.
Chemed CorpStrong Q2 earnings with Vitas exceeding expectations, boosting revenue and margins, plus aggressive share repurchases.