Roto-Rooter just posted 1.8% growth last quarter.

Adjusted EBITDA dropped 2.4%.

Margins are down over 100 basis points.

This isn’t a scrappy local outfit—this is one of the largest plumbing brands in the U.S.

So when the market leader starts dragging, it raises a bigger question:

What does that mean for the rest of the industry?

I’ll be breaking down:

• What the numbers actually say about the plumbing market

• Where Roto-Rooter is slipping

• What smaller operators can do to stay lean, competitive, and growing

Let’s get into it.

Roto-Rooter by the Numbers

Here’s what Chemed (Roto-Rooter’s parent company) just reported for Q1 2025:

Not exactly confidence-inspiring from one of the top dogs in the space.

So What’s Really Happening?

1. Residential demand is soft

Homeowners are putting off big projects. Plumbing isn’t optional but upgrades, add-ons, and high-ticket service calls are.

Rates are high. Refi activity is frozen. Renovations are paused. That’s putting a cap on growth.

2. Commercial is doing the heavy lifting

Excavation and water restoration are booming up 38% and 14% respectively. But traditional plumbing is flat. If Roto didn’t have other verticals, this report would look worse.

3. The contractor model is showing strain

Independent contractor revenue dropped 6.4%. That’s big. Less control = less consistency = fewer booked jobs and lower quality service.

If you're relying on subcontractors or 1099s, this should hit close to home.

4. Margins are getting squeezed

Fuel, labor, marketing it’s all more expensive. And yet pricing power isn’t keeping up. If Roto-Rooter with its national scale and brand can’t hold margin, who can?

What Local Plumbing Companies Can Learn (and Do)

Let’s talk defense and offense:

Diversify where you can

Roto’s growth is coming from excavation and restoration, not drain cleaning. If you’re not offering add-on services with better margins, you’re leaving money on the table.

Control your labor

Contractors are risky. You might save upfront, but if your customer experience drops, you're paying for it on the backend. Don’t sacrifice consistency for short-term flexibility.

Streamline your ops

Margins are won in the field. Route efficiency, truck stock, first-call completes that’s where the real savings are hiding. Every mile and minute counts.

Lean into local trust

The national brands are running PPC and praying. You have an edge: community presence. Be faster. Be more human. Get face-to-face when you can.

The Takeaway

Roto-Rooter slowing down doesn’t mean the plumbing industry is collapsing.

It means the rules are changing.

Growth will go to the operators who:

• Adapt fast

• Diversify smart

• Build teams with accountability

• Create repeatable, high-touch experiences

Big brands have scale—but scale doesn’t move fast.

You can.