1. Stanley Steemer for plumbing and drains.

2. HCA Healthcare for end-of-life care.

• Hospice and Palliative Care Services: Provides comprehensive medical care and support for patients with life-limiting illnesses and their families.
• Plumbing Services: Offers repair, installation, and maintenance of plumbing systems for residential and commercial customers.
• Drain Cleaning: Specializes in clearing clogs and blockages from drains and pipes.
• Excavation Services: Provides digging and trenching for underground plumbing repairs and installations.
• Water Restoration: Delivers cleanup and repair services for properties affected by water damage.

Chemed Corporation (CHE) primarily serves individuals and businesses across its two operating segments.

The company's major customer categories are:

1. Individuals seeking hospice and palliative care services: Through its VITAS segment, Chemed provides medical, emotional, and spiritual support to patients with life-limiting illnesses and their families, who are primarily individuals.
2. Residential customers seeking plumbing, drain cleaning, and water restoration services: Through its Roto-Rooter segment, the company serves individual homeowners and renters for their household plumbing, drain, and water damage needs.
3. Commercial customers seeking plumbing, drain cleaning, and water restoration services: The Roto-Rooter segment also provides services to various commercial establishments, including businesses, institutions, and other non-residential clients.

Kevin J. McNamara, President and Chief Executive Officer

Kevin J. McNamara began his career at Chemed in 1980 as a corporate attorney. In 1981, he moved to Omnicare, Inc., a then 24%-owned Chemed affiliate, as Secretary. He returned to Chemed in 1986 as Vice President, General Counsel, and Secretary. From 1990 through 1992, he also served as Executive Vice President and Chief Operating Officer of Omnicare. He was elected Vice Chairman of Chemed in 1992, and named Executive Vice President, Secretary, and General Counsel in 1993. He became President in 1994 and Chief Executive Officer in 2001. Mr. McNamara also became Chairman of Chemed's VITAS Healthcare Corporation subsidiary in February 2004.

Michael D. Witzeman, Vice President, Chief Financial Officer, and Controller

Michael D. Witzeman was appointed Chief Financial Officer of Chemed Corporation, effective January 1, 2024. He was promoted to Controller in May 2017. Mr. Witzeman joined Chemed in 2005 as an Assistant Controller, with responsibilities for SEC Reporting and the adoption of new accounting guidance, and was promoted to Vice President in 2012. Prior to joining Chemed, he was employed as a Senior Manager of Assurance at Deloitte & Touche LLP.

Spencer S. Lee, Executive Vice President and Chairman and Chief Executive Officer of Roto-Rooter Management Company subsidiary

Spencer S. Lee began his career at Chemed in 1980 as an Assistant to the President. In 1981, he transferred to Chemed's Roto-Rooter subsidiary as Director of Development. He served in various capacities at Roto-Rooter, including Assistant General Manager of Roto-Rooter's Boston division and Vice President for the Mid-Atlantic and Northeast Regions. In 1996, he was promoted to Senior Vice President of Operations for Roto-Rooter Services Company, and in 1999, he was named Chairman and Chief Executive Officer of Roto-Rooter Management Company. The Board of Directors elected him to the additional post of Executive Vice President of Chemed in 2000.

Joel L. Wherley, President and Chief Executive Officer of Chemed's VITAS subsidiary

Joel L. Wherley joined VITAS in 2016 as Senior Vice President of Hospice Operations. He was promoted to Executive Vice President and Chief Operating Officer in 2017, named President in 2024, and appointed Chief Executive Officer in 2025. Mr. Wherley is responsible for the strategic leadership, operational performance, and administrative governance of VITAS.

Greg Zarick, Vice President

Greg Zarick has served as Vice President at Chemed Corporation since November 2018. He possesses experience in general management, marketing, strategy, mergers and acquisitions, financial analysis, and operations. Mr. Zarick has held management roles in various operating companies within current and former Chemed divisions, as well as in public and private companies outside of Chemed.

1. Regulatory Scrutiny and Medicare Dependence (VITAS): The VITAS segment, which provides hospice and palliative care, is heavily reliant on government payments, with over 90-95% of its revenue derived from Medicare and Medicaid programs. This dependence exposes Chemed to significant regulatory risks, including potential changes in healthcare policy, reimbursement rates, and strict compliance requirements. A persistent and material risk is the "Medicare Cap" billing limitation, which restricts the amount of reimbursement a hospice provider can receive per patient annually, leading to revenue write-offs. For calendar year 2025, Chemed estimated a total Medicare Cap billing limitation of $28.2 million. The company has also faced past investigations and settlements related to alleged false claims and inappropriate admissions, underscoring ongoing compliance challenges.
2. Labor Shortages and Rising Operational Costs: Both of Chemed's segments face significant challenges related to workforce recruitment and retention, contributing to rising operational costs. The VITAS segment is particularly vulnerable to a nationwide shortage of qualified healthcare professionals, including nurses and home health aides, which can impact the quality of care and operational efficiency. Similarly, the Roto-Rooter segment has experienced margin compression due to higher labor and insurance costs. Attracting and retaining skilled employees in these competitive markets remains a critical challenge for the company.
3. Competition and Margin Pressure (Roto-Rooter): The Roto-Rooter segment operates in a highly fragmented and competitive market for plumbing, drain cleaning, and other home services. This segment has recently experienced decreased demand for its services, leading to declining revenue and margin pressure. In 2024, Roto-Rooter's revenue declined by 5.2% year-over-year. The company is challenged to maintain market share and pricing power, with increased reliance on paid leads to generate business, which can further impact profitability. There are also concerns about Roto-Rooter's reputation regarding high-pressure sales tactics in certain areas, which could affect customer trust and retention.

The addressable markets for Chemed Corporation's main products and services, primarily in the United States, are substantial:

VITAS Segment (Hospice and Palliative Care)

• The U.S. palliative care market was estimated at USD 35,414.9 million (approximately USD 35.4 billion) in 2023 and is projected to reach USD 68,512.2 million (approximately USD 68.5 billion) by 2030, growing at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2030.
• Another estimate places the market size of Hospices & Palliative Care Centers in the U.S. at USD 39.0 billion in 2025.
• The U.S. hospice market alone was valued at USD 29.92 billion in 2024 and is projected to reach USD 39.09 billion by 2030, with a CAGR of 4.61% from 2025 to 2030.

Roto-Rooter Segment (Plumbing, Drain Cleaning, and Water Restoration)

• The plumbing drain cleaning service market in the United States of America is projected to be USD 5,845.9 million (approximately USD 5.8 billion) in 2025 and is expected to reach USD 10,370.8 million (approximately USD 10.4 billion) by 2035, exhibiting a CAGR of 5.6% through 2035.
• The broader damage restoration industry in the U.S., which includes services such as water removal, is worth about USD 7.1 billion and is projected to rise.

Chemed Corporation (CHE) is expected to drive future revenue growth over the next 2-3 years through several key strategies across its two primary segments, VITAS Healthcare and Roto-Rooter:

1. Geographical Expansion and Strategic Acquisitions for VITAS: VITAS Healthcare aims to expand its geographical footprint through both organic growth and strategic acquisitions. This includes establishing new administrative facilities and service areas, with recent and planned expansions in Florida (e.g., Marion County) and Texas (e.g., Pflugerville). The acquisition of hospice operations, such as Covenant Health's assets in April 2024, has further broadened VITAS's reach into new markets like Florida's panhandle cities and southeast Alabama.
2. Increased Average Daily Census (ADC) and Strategic Patient Mix Management for VITAS: A core driver for VITAS is increasing its average daily census and admissions. The company is actively focusing on rebalancing its patient mix, with an emphasis on hospital-based admissions and longer-stay patients, to optimize revenue and mitigate the impact of Medicare Cap limitations.
3. Expansion of Commercial Business and Service Offerings for Roto-Rooter: Roto-Rooter plans to enhance revenue by expanding its commercial business, particularly in services like excavation and water restoration. This strategy involves increasing the number of commercial business managers and broadening the overall service portfolio, which is expected to drive growth in the commercial sector.
4. Strategic Pricing Adjustments and Improved Lead Generation for Roto-Rooter: The Roto-Rooter segment is implementing strategic pricing adjustments, especially for large commercial excavation projects, to balance revenue growth and EBITDA margins. Additionally, the company is investing in improved lead generation, including increased reliance on paid leads and a new search engine optimization (SEO) partnership, to offset declines in natural search leads.
5. Consolidation of Roto-Rooter Franchises through Acquisitions: Chemed's strategy for Roto-Rooter includes continuing to consolidate franchises through acquisitions. The company identifies independent franchises in desirable markets as potential targets for acquisition, aiming to solidify its market position and integrate these operations into its existing network.

Share Repurchases

• Chemed Corporation authorized an additional $300 million for its existing stock repurchase program on February 13, 2026.
• As of December 31, 2025, approximately $127.3 million remained authorized for future share repurchases.
• The company repurchased $431.5 million in shares during 2025 and $361.389 million in shares during 2024.

Share Issuance

• Chemed's shares outstanding declined by 5% year-over-year in the quarter ending September 30, 2025, to 14 million shares.
• In 2024, shares outstanding saw a 0.09% decline from 2023, and in 2022, a 5.26% decline from 2021.
• On February 13, 2026, an executive acquired 499 shares through derivative exercises, with 154 shares withheld for taxes, and received a new grant of 960 performance stock units.

Outbound Investments

• In April 2024, Chemed acquired Covenant Health, which contributed to the performance of its VITAS operations.
• Cash flows from investing activities for business combinations, net of cash acquired, were -$225,000 in 2025 and -$97.4 million in 2024.

Capital Expenditures

• Capital expenditures totaled $62.795 million in 2025 and $49.531 million in 2024.
• For 2026, projected capital expenditures are $68.21 million, and for 2027, they are expected to be $72.14 million.