v3.26.1
Segments
 6 Months Ended
Jun. 30, 2026
Segments [Abstract]  
Segments

3.    Segments

Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales for the second quarter of 2026 were 66% and 34%, respectively, compared to the second quarter of 2025 which were 64% and 36%, respectively. Relative contributions of each segment to service revenues and sales for the first six months of 2026 were 65% and 35%, respectively, compared to the first six months of 2025 which were 63% and 37%, respectively. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2.

The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually.

We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.

Our CODM evaluates the segments’ operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results.

The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment.

Segment data for the three months ended June 30, 2026 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

443,341 

$

229,910 

$

673,251 

$

-

$

673,251 

Cost of services provided and goods sold

(excluding depreciation)

Wages

254,425 

78,661 

333,086 

-

333,086 

Patient care expense

47,108 

-

47,108 

-

47,108 

Other expenses

36,158 

35,428 

71,586 

-

71,586 

Total cost of services provided and goods sold

337,691 

114,089 

451,780 

-

451,780 

Selling, general and administrative expense

Wages

17,959 

22,660 

40,619 

5,325 

45,944 

Advertising

-

21,793 

21,793 

-

21,793 

Stock compensation

-

-

-

11,300 

11,300 

Other expenses

8,146 

22,920 

31,066 

5,100 

36,166 

Total selling, general and administrative expense

26,105 

67,373 

93,478 

21,725 

115,203 

Depreciation

5,781 

8,474 

14,255 

12 

14,267 

Amortization

27 

2,692 

2,719 

-

2,719 

Other operating expense

28 

50 

78 

-

78 

Total costs and expenses

369,632 

192,678 

562,310 

21,737 

584,047 

Income/(loss) from operations

73,709 

37,232 

110,941 

(21,737)

89,204 

Interest expense

(54)

(185)

(239)

(1,550)

(1,789)

Intercompany interest income/(expense)

6,480 

4,575 

11,055 

(11,055)

-

Other income - net

66 

10 

76 

3,838 

3,914 

Income/(expense) before income taxes

80,201 

41,632 

121,833 

(30,504)

91,329 

Income taxes

(19,290)

(9,719)

(29,009)

5,383 

(23,626)

Net income/(loss)

$

60,911 

$

31,913 

$

92,824 

$

(25,121)

$

67,703 

Additions to long-lived assets

$

6,579 

$

21,962 

$

28,541 

$

4 

$

28,545 


‎

Segment data for the three months ended June 30, 2025 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

396,201 

$

222,597 

$

618,798 

$

-

$

618,798 

Cost of services provided and goods sold

(excluding depreciation)

Wages

241,805 

75,704 

317,509 

-

317,509 

Patient care expense

41,008 

-

41,008 

-

41,008 

Other expenses

37,831 

37,757 

75,588 

-

75,588 

Total cost of services provided and goods sold

320,644 

113,461 

434,105 

-

434,105 

Selling, general and administrative expense

Wages

16,757 

21,018 

37,775 

2,748 

40,523 

Advertising

-

18,943 

18,943 

-

18,943 

Stock compensation

-

-

-

10,069 

10,069 

Other expenses

8,328 

20,575 

28,903 

1,885 

30,788 

Total selling, general and administrative expense

25,085 

60,536 

85,621 

14,702 

100,323 

Depreciation

5,314 

8,363 

13,677 

12 

13,689 

Amortization

26 

2,545 

2,571 

-

2,571 

Other operating expense/(income)

55 

(29)

26 

-

26 

Total costs and expenses

351,124 

184,876 

536,000 

14,714 

550,714 

Income/(loss) from operations

45,077 

37,721 

82,798 

(14,714)

68,084 

Interest expense

(47)

(129)

(176)

(267)

(443)

Intercompany interest income/(expense)

5,454 

3,970 

9,424 

(9,424)

-

Other income - net

61 

23 

84 

3,390 

3,474 

Income/(expense) before income taxes

50,545 

41,585 

92,130 

(21,015)

71,115 

Income taxes

(12,326)

(9,671)

(21,997)

3,375 

(18,622)

Net income/(loss)

$

38,219 

$

31,914 

$

70,133 

$

(17,640)

$

52,493 

Additions to long-lived assets

$

7,060 

$

8,745 

$

15,805 

$

5 

$

15,810 


‎

Segment data for the first six months ended June 30, 2026 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

863,358 

$

467,406 

$

1,330,764 

$

-

$

1,330,764 

Cost of services provided and goods sold

(excluding depreciation)

Wages

498,530 

160,333 

658,863 

-

658,863 

Patient care expense

92,953 

-

92,953 

-

92,953 

Other expenses

71,674 

70,039 

141,713 

-

141,713 

Total cost of services provided and goods sold

663,157 

230,372 

893,529 

-

893,529 

Selling, general and administrative expense

Wages

35,195 

45,545 

80,740 

10,004 

90,744 

Advertising

-

43,833 

43,833 

-

43,833 

Stock compensation

-

-

-

22,055 

22,055 

Other expenses

17,018 

45,924 

62,942 

9,950 

72,892 

Total selling, general and administrative expense

52,213 

135,302 

187,515 

42,009 

229,524 

Depreciation

11,693 

16,853 

28,546 

24 

28,570 

Amortization

53 

5,236 

5,289 

-

5,289 

Other operating expense/(income)

80 

(9)

71 

(1)

70 

Total costs and expenses

727,196 

387,754 

1,114,950 

42,032 

1,156,982 

Income/(loss) from operations

136,162 

79,652 

215,814 

(42,032)

173,782 

Interest expense

(104)

(321)

(425)

(1,876)

(2,301)

Intercompany interest income/(expense)

12,717 

9,088 

21,805 

(21,805)

-

Other income - net

161 

25 

186 

8,502 

8,688 

Income/(expense) before income taxes

148,936 

88,444 

237,380 

(57,211)

180,169 

Income taxes

(35,818)

(20,747)

(56,565)

10,401 

(46,164)

Net income/(loss)

$

113,118 

$

67,697 

$

180,815 

$

(46,810)

$

134,005 

Additions to long-lived assets

$

13,322 

$

53,057 

$

66,379 

$

25 

$

66,404 


‎

Segment data for the first six months ended June 30, 2025 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

803,600 

$

462,141 

$

1,265,741 

$

-

$

1,265,741 

Cost of services provided and goods sold

(excluding depreciation)

Wages

476,978 

153,176 

630,154 

-

630,154 

Patient care expense

81,387 

-

81,387 

-

81,387 

Other expenses

75,086 

78,008 

153,094 

-

153,094 

Total cost of services provided and goods sold

633,451 

231,184 

864,635 

-

864,635 

Selling, general and administrative expense

Wages

34,284 

42,204 

76,488 

7,479 

83,967 

Advertising

-

37,112 

37,112 

-

37,112 

Stock compensation

-

-

-

21,817 

21,817 

Other expenses

17,340 

43,868 

61,208 

1,806 

63,014 

Total selling, general and administrative expense

51,624 

123,184 

174,808 

31,102 

205,910 

Depreciation

10,509 

16,601 

27,110 

24 

27,134 

Amortization

52 

5,091 

5,143 

-

5,143 

Other operating expense/(income)

119 

(42)

77 

-

77 

Total costs and expenses

695,755 

376,018 

1,071,773 

31,126 

1,102,899 

Income/(loss) from operations

107,845 

86,123 

193,968 

(31,126)

162,842 

Interest expense

(95)

(261)

(356)

(416)

(772)

Intercompany interest income/(expense)

10,750 

7,900 

18,650 

(18,650)

-

Other income - net

110 

32 

142 

4,577 

4,719 

Income/(expense) before income taxes

118,610 

93,794 

212,404 

(45,615)

166,789 

Income taxes

(30,361)

(21,936)

(52,297)

9,758 

(42,539)

Net income/(loss)

$

88,249 

$

71,858 

$

160,107 

$

(35,857)

$

124,250 

Additions to long-lived assets

$

11,384 

$

18,186 

$

29,570 

$

5 

$

29,575 

Identifiable assets by segment are as follows (in thousands):

June 30,

December 31,

2026

2025

VITAS

$

796,653 

$

784,927 

Roto-Rooter

584,356 

528,587 

Reportable segments

1,381,009 

1,313,514 

Corporate

198,576 

224,675 

Chemed consolidated

$

1,579,585 

$

1,538,189