CHE · 10-Q · 2026Q1 · Full report

Water Restoration Decline

CHEMED CORP · 2026-04-28 · Importance 30 · Surprise 40

Roto-Rooter's water restoration revenues decreased 11.7% year-over-year in Q1 2026, a decline exceeding 10% and highlighting pressure in that service line. Excavation revenues were slightly down 1.1% and contractors operations decreased 3.3% in the quarter. Implicit price concessions and credit memos decreased 16.5%, which management attributes mainly to the water restoration business, indicating both top-line and credit/takeback dynamics affected net revenue. The decline in water restoration materially contributed to the overall 0.9% segment revenue decline at Roto-Rooter.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
revenuenegativerealized-1.0%Roto-Rooter water restoration revenue for the three months ended March 31, 2026: $47,848 thousand (11.7% decrease versus prior year)