Extendicare (EXE) Q2 2026 earnings summary

Executive summary

• Q2 2026 results reflect successful execution of an acquisition strategy, with CBI Home Health, nine LTC homes from Revera, and Closing the Gap all exceeding initial EBITDA expectations.

• Adjusted EBITDA rose 71.7% year-over-year to $68.3 million, driven by acquisitions and organic growth in home health care and SGP clients.

• Revenue increased by $227.6 million to $611.0 million, with CBI Home Health contributing $145.7 million.

• Closed the $570 million acquisition of CBI Home Health, making ParaMed the leading home health care platform in Canada.

• Opened a new 320-bed LTC home in Ottawa and completed the sale of the Sudbury LTC project for $18.1 million, realizing a pre-tax gain.

Financial highlights

• Q2 2026 revenue: $611.0 million, up 59.4% year-over-year; Adjusted EBITDA: $68.3 million (11.2% margin), up 71.7%.

• Net earnings: $30.9 million, down $1.1 million year-over-year due to one-time acquisition and financing costs.

• Adjusted net earnings (excluding one-time items) increased by $15.6 million to $36.4 million.

• AFFO per share (excluding stock-based compensation and payroll tax impact) increased 52.9% year-over-year to $0.448.

• AFFO payout ratio improved to 34% from 43% year-over-year.

Outlook and guidance

• Focus on integrating CBI Home Health and supporting growth in home health care to meet rising demand from Canada’s aging population.

• Expect long-term home health care volume growth to moderate to 6%-8% annually, in line with demographic trends.

• Managed Services segment annualized NOI margins expected to remain in the 50%-55% range.

• Four new LTC homes scheduled to open in 2027, adding 832 beds; pipeline of 17 redevelopment projects representing over 3,700 beds.

• Pro forma Debt to Adjusted EBITDA expected at ~2.5x post-CBI acquisition.