Form 8-K

8-K — CHEMED CORP

Accession: 0000019584-26-000022

Filed: 2026-10-27

Period: 2026-10-27

CIK: 0000019584

SIC: 8082 (SERVICES-HOME HEALTH CARE SERVICES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — che-20261027x8k.htm (Primary)

EX-99 (che-20261027xex99.htm)

GRAPHIC (che-20261027xex99g001.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: che-20261027x8k.htm · Sequence: 1

che-20261027x8k

false000001958400000195842026-10-272026-10-27

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):

October 27, 2026

CHEMED CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

1-8351

31-0791746

(State or other

‎jurisdiction of

‎incorporation)

(Commission File Number)

(I.R.S. Employer

‎Identification

‎Number)

2600 First Financial Center, 255 East 5th Street, Cincinnati, OH 45202

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:

(513) 762-6690

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

[_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240-14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4 (c) under Exchange Act (17 CFR 240-13e-4(c))

Securities registered pursuant to 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which

registered

Capital stock $1 par value

CHE

NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]

Page 1 of 3

Item 2.02 Results of Operations and Financial Condition

On October 27, 2026, Chemed Corporation issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the release is furnished herewith as Exhibit 99.

Item 9.01 Financial Statements and Exhibits

Exhibit

(99) Registrant’s press release dated October 27, 2026

104 The cover page from this Current Report on Form 8-K formatted in Inline XBRL

Page 2 of 3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CHEMED CORPORATION

Dated: October 27, 2026

By:

/s/ Michael D. Witzeman

Michael D. Witzeman

Executive Vice President and Chief Financial Officer

Page 3 of 3

EX-99

Filename: che-20261027xex99.htm · Sequence: 2

Exhibit 99

CONTACT: Michael D. Witzeman

(513) 762-6714

Chemed Reports Third-Quarter 2026 Results

CINCINNATI, October 27, 2026—Chemed Corporation (Chemed) (NYSE: CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest providers of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, reported financial results for its third quarter ended September 30, 2026, versus the comparable prior-year period.

Results for Quarter Ended September 30, 2026

Consolidated operating results:

Revenue increased 10.6% to $690.9 million

GAAP Diluted Earnings-per-Share (EPS) of $5.45, an increase of 22.2%

Adjusted Diluted EPS of $6.75, an increase of 28.1%

VITAS segment operating results:

Net Patient Revenue of $457.4 million, an increase of 12.2%

Average Daily Census (ADC) of 24,428, an increase of 9.4%

Admissions of 18,995, an increase of 7.2%

Net Income, excluding certain discrete items, of $70.8 million, an increase of 44.7%

Adjusted EBITDA, excluding Medicare Cap, of $92.5 million, an increase of 31.4%

Adjusted EBITDA margin, excluding Medicare Cap, of 20.2%, an increase of 318-basis points

Roto-Rooter segment operating results:

Revenue of $233.5 million, an increase of 7.5%

Net Income, excluding certain discrete items, of $33.3 million, a decline of 1.8%

Adjusted EBITDA of $48.2 million, a decline of 2.5%

Adjusted EBITDA margin of 20.6%, a decline of 213-basis points

VITAS

VITAS net revenue was $457.4 million in the third quarter of 2026, which is an increase of 12.2% when compared to the prior-year period. This revenue increase is comprised primarily of a 9.4% increase in days-of-care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%. Acuity mix shift negatively impacted revenue growth 25-basis points in the quarter when compared to the prior-year period’s revenue and level-of-care mix. The combination of Medicare Cap and other contra revenue changes positively impacted revenue growth by 85-basis points.

Total VITAS admissions increased 7.2% in the third quarter of 2026 compared to the third quarter of 2025.

In the third quarter of 2026, VITAS accrued $828,000 in Medicare Cap billing limitation. This compares to the Medicare Cap billing limitation recorded in the third quarter of 2025 of $6.1 million. No Medicare Cap billing limitation was recorded in the third quarter of 2026 for the Florida combined program, and none is anticipated for the 2026 fiscal period.

Of VITAS’ 33 Medicare provider numbers, 21 provider numbers have an anticipated full-year Medicare Cap cushion of 10% or greater, seven provider numbers have a cushion between 0% and 10%, and five provider numbers have a Medicare Cap billing limitation totaling $6.1 million.

Average revenue per patient per day in the third quarter of 2026 was $209.11 which is 196-basis points above the prior-year period. Reimbursement for routine home care and high-acuity care averaged $187.69 and $1,147.26, respectively. During the quarter, high-acuity days-of-care were 2.2% of total days of care, a decline of 5-basis points when compared to the prior-year quarter.

The third quarter 2026 gross margin, excluding Medicare Cap, was 25.4%, a 221-basis point increase from the same period of 2025. Selling, general and administrative expenses were $23.1 million in the third quarter of 2026 compared to $25.2 million in the prior-year quarter.

Adjusted EBITDA, excluding Medicare Cap, totaled $92.5 million in the quarter, an increase of 31.4% when compared to the prior-year period. Adjusted EBITDA margin in the quarter, excluding Medicare Cap, was 20.2%.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $233.5 million in the third quarter of 2026, an increase of 7.5%, when compared to the prior-year quarter.

Roto-Rooter branch commercial revenue in the quarter totaled $59.9 million, an increase of 9.0% from the prior-year period. This aggregate commercial revenue change consisted of plumbing increasing 10.6%, drain cleaning increasing 6.8%, excavation increasing 5.5% and water restoration increasing 30.7%.

Roto-Rooter branch residential revenue in the quarter totaled $158.8 million, an increase of 5.2% over the prior-year period. This aggregate residential revenue change consisted of excavation increasing 7.8%, plumbing increasing 5.9%, water restoration increasing 6.2% and drain cleaning increasing 4.5%.

In the third quarter of 2026, revenue from independent contractors was $16.9 million which is flat compared to the same period of 2025.

Roto-Rooter’s third quarter 2026 gross margin was 50.3%. This compares to the prior-year quarter’s gross margin of 50.7%. Roto-Rooter’s selling, general and administrative expenses were $71.0 million in the quarter, which is an increase of 17.1% compared to the third quarter of 2025.

Adjusted EBITDA in the third quarter of 2026 totaled $48.2 million, a decline of 2.5% when compared to the third quarter of 2025. Adjusted EBITDA margin in the quarter was 20.6% which represents a 213-basis point decline from the third quarter of 2025.

During the third quarter of 2026, Roto-Rooter re-acquired multiple franchise territories in California for approximately $62.5 million. Collectively, these territories include a population of over 12 million people. Slightly over half of the revenue associated with acquired territories will become part of our owned and operated branch locations. Two new branches will be established in Sacramento and San Diego while other territories will be absorbed by existing branches. The remaining locations will become part of our independent contractor operating model.

Chemed Consolidated

As of September 30, 2026, Chemed had total cash and cash equivalents of $48.4 million and $236.0 million in long-term debt.

In April 2026, Chemed entered into a new five-year $450 million Amended and Restated Credit Agreement (Credit Agreement). This Credit Agreement consists of a $450 million revolving line of credit and a $250 million expansion feature. The interest rate on this Credit Agreement has a floating rate that is currently SOFR plus 100-basis points. There is approximately $166.7 million undrawn borrowing capacity under the Credit Agreement after excluding $47.3 million for Letters of Credit.

During the quarter, the Company repurchased 125,000 shares of Chemed stock for $66.0 million which equates to a cost per share of $528.24. Over the trailing 12-months, the Company has repurchased 1,235,000 shares of Chemed stock at an average price of $427.62 per share. As of September 30, 2026, there was approximately $73.7 million of remaining share repurchase authorization under the Company’s plan.

Guidance Update

Based on the Company’s financial results through September 30, 2026, we estimate that we will be at or slightly above the high-end of our full-year 2026 adjusted EPS guidance issued in conjunction with our press release, dated July 28, 2026, discussing our second quarter 2026 earnings. Further operational detail will be provided during the investor conference call.

Conference Call

As previously disclosed, Chemed will host a conference call and webcast at 10 a.m. ET, on Wednesday October 28, 2026, to discuss the company's quarterly results and to provide an update on its business. Participants may access a live webcast of the conference call through the investor relations section of Chemed’s website, Investor Relations Home | Chemed Corporation or the hosting website https://edge.media-server.com/mmc/p/v5gcs68f.

Participants may also register via teleconference at:

https://register-conf.media-server.com/register/BId8ccb8a390cc4b6fbb29ab2b99a55028.

Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. You may access the replay via webcast through the investor relations section of Chemed’s website.

Chemed operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing, drain cleaning, and water cleanup services through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in the republics of Indonesia and Singapore, and the Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS, which are not measures derived in accordance with GAAP and which exclude components that are important to understanding Chemed’s financial performance. In reporting its operating results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted EPS measures to help investors and others evaluate the Company’s operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s management similarly uses EBITDA, Adjusted EBITDA, and Adjusted Diluted EPS to assist it in evaluating the performance of the Company across fiscal periods and in assessing how its performance compares to its peer companies. These measures also help Chemed’s management to estimate the resources required to meet Chemed’s future financial obligations and expenditures. Chemed’s EBITDA, Adjusted EBITDA and Adjusted Diluted EPS should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. We calculated Adjusted EBITDA margin by dividing Adjusted EBITDA by service revenue and sales. A reconciliation of Chemed’s Net Income to its EBITDA, Adjusted EBITDA and Adjusted Diluted EPS is presented in the tables following the text of this press release.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods and are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors, including, but not limited to, the impact of laws and regulations on Chemed’s operations, including Medicare Cap and Medicare reimbursement rates, Chemed’s estimates of the effect of Medicare Cap on VITAS’ revenues and future prospects, Chemed’s expectations regarding VITAS’ patient mix and Chemed’s expectations regarding demand for Roto-Rooter’s services.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Chemed’s control. Chemed’s actual results and financial condition may differ materially from those indicated in the forward-looking statements included in this press release, including as a result of the risks described above and those described in Chemed’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its Quarterly Reports filed in 2026. Any forward-looking statement made by Chemed in this press release is based only on information currently available to Chemed and speaks only as of the date on which it is made. Chemed undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Service revenues and sales

690,940

624,900

2,021,704

1,890,641

Cost of services provided and goods sold

457,978

425,143

1,351,507

1,289,778

Selling, general and administrative expenses (aa)

111,469

105,775

340,993

311,685

Depreciation

14,427

13,664

42,997

40,798

Amortization

2,974

2,570

8,263

7,713

Other operating expense

7,670

2,998

7,740

3,075

Total costs and expenses

594,518

550,150

1,751,500

1,653,049

Income from operations

96,422

74,750

270,204

237,592

Interest expense

(2,097)

(457)

(4,398)

(1,229)

Other income--net (bb)

2,383

9,251

11,071

13,970

Income before income taxes

96,708

83,544

276,877

250,333

Income taxes

(25,060)

(19,307)

(71,224)

(61,846)

Net income

71,648

64,237

205,653

188,487

Earnings Per Share

Net income

5.49

4.46

15.46

12.97

Average number of shares outstanding

13,058

14,394

13,300

14,535

Diluted Earnings Per Share

Net income

5.45

4.46

15.43

12.89

Average number of shares outstanding

13,135

14,409

13,329

14,620

(aa) Selling, general and administrative ("SG&A") expenses comprise (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

SG&A expenses before long-term incentive compensation

and the impact of market value adjustments related to

deferred compensation plans

106,241

99,288

324,428

301,600

Market value adjustments related to deferred

compensation trusts

2,077

6,703

9,661

6,791

Long-term incentive compensation

3,151

(216)

6,904

3,294

Total SG&A expenses

111,469

105,775

340,993

311,685

(bb) Other income--net comprises (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Market value adjustments related to deferred

compensation trusts

2,077

6,703

9,661

6,791

Interest income

295

2,555

1,399

7,186

Other

(7)

Total other income--net

2,383

9,251

11,071

13,970

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)(unaudited)

September 30,

2026

2025

Assets

Current assets

Cash and cash equivalents

48,427

129,752

Accounts receivable less allowances

254,861

215,570

Inventories

7,748

8,238

Prepaid income taxes

16,346

7,106

Prepaid expenses

38,346

34,577

Total current assets

365,728

395,243

Investments of deferred compensation plans held in trust

144,845

136,021

Properties and equipment, at cost less accumulated depreciation

216,961

203,939

Lease right of use asset

144,029

128,362

Identifiable intangible assets less accumulated amortization

78,791

84,930

Goodwill

754,758

666,987

Other assets

13,327

8,137

Total Assets

1,718,439

1,623,619

Liabilities

Current liabilities

Accounts payable

65,297

48,095

Accrued insurance

77,044

65,733

Accrued income taxes

1,469

Accrued compensation

89,044

79,668

Short-term lease liability

41,209

42,013

Other current liabilities

58,340

55,063

Total current liabilities

330,934

292,041

Deferred income taxes

18,855

9,687

Deferred compensation liabilities

142,421

132,380

Long-term debt

236,000

Long-term lease liability

114,985

99,461

Other liabilities

13,823

13,367

Total Liabilities

857,018

546,936

Stockholders' Equity

Capital stock

37,762

37,593

Paid-in capital

1,693,508

1,581,067

Retained earnings

3,135,794

2,887,123

Treasury stock, at cost

(4,008,128)

(3,431,475)

Deferred compensation payable in Company stock

2,485

2,375

Total Stockholders' Equity

861,421

1,076,683

Total Liabilities and Stockholders' Equity

1,718,439

1,623,619

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)(unaudited)

For the Nine Months Ended September 30,

2026

2025

Cash Flows from Operating Activities

Net income

205,653

188,487

Adjustments to reconcile net income to net cash provided

by operating activities:

Depreciation and amortization

51,260

48,511

Stock option expense

24,285

24,374

Noncash long-term incentive compensation

6,784

3,057

Legal settlements

6,000

1,850

Noncash directors' compensation

1,191

1,123

Benefit for deferred income taxes

(456)

(16,259)

Amortization of debt issuance costs

255

241

Changes in operating assets and liabilities, excluding

amounts acquired in business combinations:

Increase in accounts receivable

(71,304)

(44,403)

Increase in inventories

(205)

(45)

Increase in prepaid expenses

(11,528)

(8,603)

Increase in accounts payable and

other current liabilities

27,783

10,102

Change in current income taxes

(7,685)

(2,162)

Net change in lease assets and liabilities

(667)

(576)

(Increase)/decrease in other assets

(9,356)

42,048

Increase in other liabilities

6,772

6,355

Other sources

840

639

Net cash provided by operating activities

229,622

254,739

Cash Flows from Investing Activities

Business combinations, net of cash acquired

(96,050)

(225)

Capital expenditures

(51,355)

(46,447)

Proceeds from sale of fixed assets

488

3,751

Other uses

(502)

(468)

Net cash used by investing activities

(147,419)

(43,389)

Cash Flows from Financing Activities

Proceeds from revolving line of credit

843,280

Payments on revolving line of credit

(607,280)

Purchases of treasury stock

(350,042)

(256,944)

Proceeds from exercise of stock options

30,281

27,152

Dividends paid

(25,234)

(23,196)

Change in cash overdrafts payable

6,818

610

Capital stock surrendered to pay taxes on stock-based compensation

(3,832)

(8,484)

Debt issuance costs

(1,349)

Other (uses)/sources

(933)

914

Net cash used by financing activities

(108,291)

(259,948)

Decrease in Cash and Cash Equivalents

(26,088)

(48,598)

Cash and cash equivalents at beginning of year

74,515

178,350

Cash and cash equivalents at end of period

48,427

129,752

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026 (a)

Service revenues and sales

457,403

233,537

690,940

Cost of services provided and goods sold

341,993

115,985

457,978

Selling, general and administrative expenses

23,100

71,033

17,336

111,469

Depreciation

5,791

8,624

14,427

Amortization

2,949

2,974

Other operating expense

7,352

230

7,670

Total costs and expenses

378,261

198,679

17,578

594,518

Income/(loss) from operations

79,142

34,858

(17,578)

96,422

Interest expense

(54)

(145)

(1,898)

(2,097)

Intercompany interest income/(expense)

6,766

4,574

(11,340)

Other income—net

124

2,254

2,383

Income/(loss) before income taxes

85,978

39,292

(28,562)

96,708

Income taxes

(20,270)

(9,152)

4,362

(25,060)

Net income/(loss)

65,708

30,140

(24,200)

71,648

2025 (b)

Service revenues and sales

407,741

217,159

624,900

Cost of services provided and goods sold

318,015

107,128

425,143

Selling, general and administrative expenses

25,236

60,672

19,867

105,775

Depreciation

5,354

8,298

13,664

Amortization

2,544

2,570

Other operating expense/(income)

3,036

(38)

2,998

Total costs and expenses

351,667

178,604

19,879

550,150

Income/(loss) from operations

56,074

38,555

(19,879)

74,750

Interest expense

(56)

(132)

(269)

(457)

Intercompany interest income/(expense)

5,685

4,030

(9,715)

Other income—net

9,165

9,251

Income/(loss) before income taxes

61,764

42,478

(20,698)

83,544

Income taxes

(14,993)

(10,407)

6,093

(19,307)

Net income/(loss)

46,771

32,071

(14,605)

64,237

The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026 (a)

Service revenues and sales

1,320,762

700,942

2,021,704

Cost of services provided and goods sold

1,005,150

346,357

1,351,507

Selling, general and administrative expenses

75,314

206,335

59,344

340,993

Depreciation

17,484

25,477

42,997

Amortization

8,185

8,263

Other operating expense

7,432

230

7,740

Total costs and expenses

1,105,458

586,432

59,610

1,751,500

Income/(loss) from operations

215,304

114,510

(59,610)

270,204

Interest expense

(158)

(466)

(3,774)

(4,398)

Intercompany interest income/(expense)

19,484

13,661

(33,145)

Other income—net

285

10,755

11,071

Income/(loss) before income taxes

234,915

127,736

(85,774)

276,877

Income taxes

(56,088)

(29,899)

14,763

(71,224)

Net income/(loss)

178,827

97,837

(71,011)

205,653

2025 (b)

Service revenues and sales

1,211,341

679,300

1,890,641

Cost of services provided and goods sold

951,466

338,312

1,289,778

Selling, general and administrative expenses

76,861

183,856

50,968

311,685

Depreciation

15,863

24,899

40,798

Amortization

7,635

7,713

Other operating expense/(income)

3,155

(80)

3,075

Total costs and expenses

1,047,423

554,622

51,004

1,653,049

Income/(loss) from operations

163,918

124,678

(51,004)

237,592

Interest expense

(150)

(394)

(685)

(1,229)

Intercompany interest income/(expense)

16,436

11,930

(28,366)

Other income—net

170

13,742

13,970

Income/(loss) before income taxes

180,374

136,272

(66,313)

250,333

Income taxes

(45,353)

(32,344)

15,851

(61,846)

Net income/(loss)

135,021

103,928

(50,462)

188,487

The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026

Net income/(loss)

65,708

30,140

(24,200)

71,648

Add/(deduct):

Interest expense

145

1,898

2,097

Income taxes

20,270

9,152

(4,362)

25,060

Depreciation

5,791

8,624

14,427

Amortization

2,949

2,974

EBITDA

91,848

51,010

(26,652)

116,206

Add/(deduct):

Intercompany interest expense/(income)

(6,766)

(4,574)

11,340

Interest income

(113)

(5)

(177)

(295)

Legal settlements

6,705

308

7,013

Stock option expense

5,984

Long-term incentive compensation

3,151

Acquisition expense

1,726

Adjusted EBITDA

91,674

48,157

(6,046)

133,785

2025

Net income/(loss)

46,771

32,071

(14,605)

64,237

Add/(deduct):

Interest expense

132

269

457

Income taxes

14,993

10,407

(6,093)

19,307

Depreciation

5,354

8,298

13,664

Amortization

2,544

2,570

EBITDA

67,200

53,452

(20,417)

100,235

Add/(deduct):

Intercompany interest expense/(income)

(5,685)

(4,030)

9,715

Interest income

(69)

(25)

(2,462)

(2,556)

Stock option expense

6,067

Legal settlements

2,850

Long-term incentive compensation

(216)

Other

2,665

Adjusted EBITDA

64,296

49,397

(4,648)

109,045

The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARIES OF EBITDA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2026

Net income/(loss)

178,827

97,837

(71,011)

205,653

Add/(deduct):

Interest expense

158

466

3,774

4,398

Income taxes

56,088

29,899

(14,763)

71,224

Depreciation

17,484

25,477

42,997

Amortization

8,185

8,263

EBITDA

252,635

161,864

(81,964)

332,535

Add/(deduct):

Intercompany interest expense/(income)

(19,484)

(13,661)

33,145

Interest income

(274)

(31)

(1,094)

(1,399)

Stock option expense

24,285

Legal settlements

7,253

308

7,561

Long-term incentive compensation

6,904

Acquisition expense

1,953

1,961

Adjusted EBITDA

240,138

150,125

(18,416)

371,847

2025

Net income/(loss)

135,021

103,928

(50,462)

188,487

Add/(deduct):

Interest expense

150

394

685

1,229

Income taxes

45,353

32,344

(15,851)

61,846

Depreciation

15,863

24,899

40,798

Amortization

7,635

7,713

EBITDA

196,465

169,200

(65,592)

300,073

Add/(deduct):

Intercompany interest expense/(income)

(16,436)

(11,930)

28,366

Interest income

(176)

(58)

(6,952)

(7,186)

Stock option expense

24,374

Long-term incentive compensation

3,294

Legal settlements

2,850

Other

2,665

Adjusted EBITDA

182,703

157,212

(13,845)

326,070

The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

RECONCILIATION OF ADJUSTED NET INCOME

(in thousands, except per share data)(unaudited)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Net income as reported

71,648

64,237

205,653

188,487

Add/(deduct) pre-tax cost of:

Stock option expense

5,984

6,067

24,285

24,374

Legal settlements

7,013

2,850

7,561

2,850

Amortization of reacquired franchise rights

2,352

7,056

Long-term incentive compensation

3,151

(216)

6,904

3,294

Acquisition expense

1,726

1,961

Other

2,665

Add/(deduct) tax impacts:

Tax impact of the above pre-tax adjustments (1)

(3,670)

(2,049)

(8,296)

(6,512)

Excess tax expenses/(benefits) on stock

compensation

521

1,022

(513)

Adjusted net income

88,725

75,906

246,146

221,701

Diluted Earnings Per Share As Reported

Net income

5.45

4.46

15.43

12.89

Average number of shares outstanding

13,135

14,409

13,329

14,620

Adjusted Diluted Earnings Per Share

Adjusted net income

6.75

5.27

18.47

15.16

Average number of shares outstanding

13,135

14,409

13,329

14,620

(1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated.

The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

OPERATING STATISTICS FOR VITAS SEGMENT

(unaudited)

Three Months Ended September 30,

For the Nine Months Ended September 30,

OPERATING STATISTICS

2026

2025

2026

2025

Net revenue ($000) (c)

Homecare

405,969

362,405

1,168,407

1,072,014

Inpatient

36,407

33,099

108,006

100,145

Continuous care

21,159

19,946

58,689

68,222

Other

6,421

5,807

18,204

16,898

Subtotal

469,956

421,257

1,353,306

1,257,279

Room and board, net

(3,982)

(3,859)

(11,178)

(11,277)

Contractual allowances

(7,743)

(3,571)

(17,663)

(9,875)

Medicare cap allowance

(828)

(6,086)

(3,703)

(24,786)

Net Revenue

457,403

407,741

1,320,762

1,211,341

Net revenue as a percent of total before Medicare cap allowance

Homecare

86.4

86.0

86.3

85.3

Inpatient

7.7

7.9

8.0

Continuous care

4.5

4.7

4.3

5.4

Other

1.4

1.3

Subtotal

100.0

Room and board, net

(0.8)

(0.9)

Contractual allowances

(1.7)

(0.8)

(1.3)

(0.8)

Medicare cap allowance

(0.2)

(1.4)

(0.3)

(2.0)

Net Revenue

97.3

97.0

97.6

96.3

Days of care

Homecare

1,872,071

1,685,859

5,356,050

4,980,883

Nursing home

312,663

309,192

910,534

923,458

Respite

12,502

12,184

35,684

33,619

Subtotal routine homecare and respite

2,197,236

2,007,235

6,302,268

5,937,960

Inpatient

30,494

28,530

90,671

86,447

Continuous care

19,683

18,309

55,065

62,576

Total

2,247,413

2,054,074

6,448,004

6,086,983

Number of days in relevant time period

273

Average daily census ("ADC") (days)

Homecare

20,348

18,325

19,619

18,245

Nursing home

3,399

3,361

3,335

3,383

Respite

136

132

131

123

Subtotal routine homecare and respite

23,883

21,818

23,085

21,751

Inpatient

331

310

332

317

Continuous care

214

199

202

229

Total

24,428

22,327

23,619

22,297

Total Admissions

18,995

17,714

57,514

53,398

Total Discharges

18,426

17,348

55,130

52,931

Average length of stay (days)

103.5

109.7

102.5

121.9

Median length of stay (days)

17.0

18.0

16.0

18.0

ADC by major diagnosis

Cerebro

44.1

44.4

44.6

Neurological

11.2

11.6

11.1

11.8

Cancer

9.2

10.1

9.4

9.8

Cardio

16.8

15.9

16.6

16.0

Respiratory

8.1

7.7

7.9

7.4

Other

10.6

10.4

Total

100.0

Admissions by major diagnosis

Cerebro

28.0

27.1

27.5

27.6

Neurological

6.7

6.9

6.8

Cancer

24.7

26.6

24.3

25.9

Cardio

14.9

14.3

15.3

14.7

Respiratory

12.3

10.5

12.2

10.9

Other

13.4

14.6

13.8

14.1

Total

100.0

Estimated uncollectible accounts as a percent of revenues

1.2

0.9

1.3

0.8

Accounts receivable --

Days of revenue outstanding-excluding unapplied Medicare payments

39.0

37.5

n.a.

Days of revenue outstanding-including unapplied Medicare payments

37.4

34.0

n.a.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

FOOTNOTES TO FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(unaudited)

(a)

Included in the results of operations for 2026 are the following significant credits/(charges) which may not be indicative of ongoing operations

(in thousands):

Three Months Ended September 30, 2026

VITAS

Roto-Rooter

Corporate

Consolidated

Legal settlements

(6,705)

(308)

(7,013)

Stock option expense

(5,984)

Long-term incentive compensation

(3,151)

Amortization of reacquired franchise agreements

(2,352)

Acquisition expense

(1,726)

Pretax impact on earnings

(6,705)

(4,078)

(9,443)

(20,226)

Excess tax expenses on stock compensation

(521)

Income tax benefit on the above

1,629

950

1,091

3,670

After-tax impact on earnings

(5,076)

(3,128)

(8,873)

(17,077)

Nine Months Ended September 30, 2026

VITAS

Roto-Rooter

Corporate

Consolidated

Stock option expense

(24,285)

Legal settlements

(7,253)

(308)

(7,561)

Amortization of reacquired franchise agreements

(7,056)

Long-term incentive compensation

(6,904)

Acquisition expense

(8)

(1,953)

(1,961)

Pretax impact on earnings

(7,261)

(9,009)

(31,497)

(47,767)

Excess tax expenses on stock compensation

(1,022)

Income tax benefit on the above

1,764

2,100

4,432

8,296

After-tax impact on earnings

(5,497)

(6,909)

(28,087)

(40,493)

(b)

Included in the results of operations for 2025 are the following significant credits/(charges) which may not be indicative of ongoing operations

(in thousands):

Three Months Ended September 30, 2025

VITAS

Roto-Rooter

Corporate

Consolidated

Stock option expense

(6,067)

Legal settlements

(2,850)

Amortization of reacquired franchise agreements

(2,352)

Long-term incentive compensation

216

Other

(2,665)

Pretax impact on earnings

(2,850)

(2,352)

(8,516)

(13,718)

Income tax benefit on the above

698

546

805

2,049

After-tax impact on earnings

(2,152)

(1,806)

(7,711)

(11,669)

Nine Months Ended September 30, 2025

VITAS

Roto-Rooter

Corporate

Consolidated

Stock option expense

(24,374)

Amortization of reacquired franchise agreements

(7,056)

Long-term incentive compensation

(3,294)

Legal settlements

(2,850)

Other

(2,665)

Pretax impact on earnings

(2,850)

(7,056)

(30,333)

(40,239)

Excess tax benefits on stock compensation

513

Income tax benefit on the above

698

1,637

4,177

6,512

After-tax impact on earnings

(2,152)

(5,419)

(25,643)

(33,214)

(c)

VITAS has 14 large (greater than 450 ADC), 25 medium (greater than 200 but less than 450 ADC) and 21 small (less than 200 ADC) hospice programs. Of Vitas' 33 Medicare provider numbers, for the current cap year, 21 provider numbers have a Medicare cap cushion of greater than 10%, seven provider numbers have a Medicare cap cushion between 0% and 10%, and five provider numbers have a Medicare cap liability.

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v3.26.3

Document And Entity Information

Oct. 27, 2026

Document And Entity Information [Abstract]

Document Type

8-K

Document Period End Date

Oct. 27, 2026

Entity Registrant Name

CHEMED CORPORATION

Entity Incorporation, State or Country Code

Entity File Number

1-8351

Entity Tax Identification Number

31-0791746

Entity Address, Address Line One

2600 First Financial Center

Entity Address, Address Line Two

255 East 5th Street

Entity Address, City or Town

Cincinnati

Entity Address, State or Province

Entity Address, Postal Zip Code

45202

City Area Code

513

Local Phone Number

762-6690

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false

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false

Pre Commencement Tender Offer

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Title of 12(b) Security

Capital stock $1 par value

Trading Symbol

CHE

Security Exchange Name

NYSE

Entity Emerging Growth Company

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Entity Central Index Key

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