Chemed Corporation reported its financial results for the third quarter and the first nine months of 2025, revealing a consolidated service revenue of $624.9 million for the third quarter, a 3.1% increase from $606.2 million in the same period of 2024. For the nine months ended September 30, 2025, total service revenues reached $1.89 billion, up 5.5% from $1.79 billion in the prior year. The company’s net income for the third quarter was $64.2 million, down from $75.8 million a year earlier, while net income for the nine months was $188.5 million, compared to $211.7 million in 2024.
The decrease in net income was attributed to several factors, including increased expenses related to Medicare Cap liabilities and legal settlements. The effective tax rate for the third quarter was 23.1%, a decrease from 25.0% in the previous year, while the nine-month effective tax rate was 24.7%, slightly higher than 24.2% in 2024. Earnings per share for the third quarter were reported at $4.46, down from $5.00, and $12.97 for the nine months, compared to $14.04 in the prior year.
Operationally, Chemed's VITAS segment, which focuses on hospice care, generated $407.7 million in revenue for the third quarter, a 4.2% increase from $391.4 million in 2024. This growth was driven by a 2.5% increase in days of care and a 4.1% increase in Medicare reimbursement rates. However, the segment faced challenges from a shift in acuity mix and contra revenue adjustments, which negatively impacted revenue growth. The Roto-Rooter segment reported $217.2 million in revenue, a 1.1% increase, primarily due to growth in plumbing and excavation services.
In terms of strategic developments, Chemed completed the acquisition of a franchise in Michigan for $225,000 in January 2025, following several other acquisitions in 2024. The company continues to focus on expanding its market presence while managing operational costs. As of September 30, 2025, Chemed's total assets were valued at $1.62 billion, with total liabilities of $546.9 million, reflecting a slight decrease in both categories compared to the end of 2024. The company reported a cash and cash equivalents balance of $129.8 million, down from $178.4 million at the end of the previous year.
Looking ahead, Chemed anticipates that its operating income and cash flows will be sufficient to meet business commitments in the foreseeable future. The company remains vigilant regarding macroeconomic trends, including inflation and potential tariff impacts, which could affect profitability. Management is committed to evaluating cash utilization strategies, including share repurchases and acquisitions, to optimize capital resources.
About CHEMED CORP
Chemed Corporation operates through two primary segments: VITAS, a leading provider of hospice and palliative care services primarily reimbursed by Medicare and Medicaid, and Roto-Rooter, a well-known plumbing, drain cleaning, excavation, and water restoration service provider serving residential and commercial customers across the U.S. Chemed’s decentralized business model emphasizes quality service delivery, strong brand recognition, and regulatory compliance in highly competitive healthcare and home services markets.
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