- Chemed Corporation, headquartered in Cincinnati, operates Roto-Rooter and VITAS Healthcare as wholly owned subsidiaries.
- Kevin McNamara became CEO of Chemed, and Vitas received acquisition support from Covington Health.
Chemed Corporation Reports Revenue Growth Driven by VITAS Healthcare
What happened
Chemed Corporation reported higher third-quarter revenue and adjusted earnings, with growth at its VITAS hospice business balancing margin pressure at Roto-Rooter from customer-acquisition and fuel costs. Consolidated revenue increased 10.6% from the prior-year quarter, and adjusted diluted earnings per share rose 28.1%. Through the first nine months of 2026, the company generated over $229 million in operating cash flow.
From tickerreport.com
Why it matters
The results show that VITAS Healthcare's net revenue increased 12.2% year over year, driven by a 9.4% rise in days of care and a 2.2% Medicare reimbursement increase. VITAS adjusted EBITDA, excluding Medicare Cap, rose 31.4% to $92.5 million. This performance demonstrates how the growth in the healthcare subsidiary is supporting the overall financial stability of Chemed Corporation.
Chemed Corporation operates Roto-Rooter and VITAS Healthcare as wholly owned subsidiaries.
From tickerreport.com
Who's involved
- Chemed CorporationParent company that owns Roto-Rooter and VITAS Healthcare
- Roto-RooterWholly owned subsidiary of Chemed Corporation
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Chemed CorporationSpeculative
The company could see increased investment flexibility due to strong operating cash flow and earnings growth.
- Roto-RooterSpeculative
Roto-Rooter might face continued pressure on costs from customer-acquisition and fuel expenses.
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The entities involved
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Roto-Rooter
plumbing company
Nothing else this week.
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Kevin McNamara
American businessperson and board member, director at Tyson Foods
Nothing else this week.