Quarter-End Catch-up w/ Mgmt; Q2 Seems To Be Performing As Planned

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Quarter-End Catch-up w/ Mgmt; Q2 Seems To Be Performing As Planned

USA | Healthcare

Chemed EquityJuneResearch24, 2026

ESTIMATE CHANGEQuarter-End Catch-up w/ Mgmt; Q2 Seems To

RATING HOLDBe Performing As Planned

PRICE $436.07^

Ahead of the Q2 quiet period, we caught up with CHE mgmt and walked away

with the belief that enterprise-level performance is tracking to plan for the PRICE TARGET | % TO PT $400.00 | -8%

quarter. VITAS appears to be seeing continued strength, with mgmt expressing 52W HIGH-LOW $562.77 - $365.21

confidence that the Medicare cap won't be an issue this year, while Roto-Rooter FLOAT (%) | ADV MM (USD) 95.2% | 98.24

seems to have seen positive momentum in May & June after a sluggish start MARKET CAP $6.0B

to the quarter. Buyback activity was more modest than usual in Q2. TICKER CHE ^Prior trading day's closing price unless otherwise

noted.

Price: Pre-market, 2/26/26

Roto Q2 Performance In-Line; Marketing Spend Remains Elevated. Mgmt. noted Q2 trends

tracked in line with expectations, with April softness followed by sequential improvement through

May and June. FY26 revenue guidance remains unchanged at ~3–3.5% growth, as incremental FY (Dec) CHANGE TO JEFe JEF vs CONS

contribution from recent franchise acquisitions is offset by continued weakness in contracting. 2026 2027 2026 2027

That said, mgmt outlined ~$200-250MM of capacity for tuck-in franchise M&A. Operationally, water REV NM NM NM NM

restoration is trending positively, though elevated marketing spend remains the primary margin EPS NM NM -1% -3%

headwind.

VITAS: Volume-Led Strength Driving Durable Growth. Mgmt indicated that VITAS continues to 2026 ($) Q1 Q2 Q3 Q4 FY

perform well, driven by sustained volume growth and further expansion of Medicare cap cushion. EPS -- -- -- -- 24.18