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Extendicare (EXE) investor relations material
Extendicare Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Adjusted EBITDA rose 15.4% year-over-year to $39.8M, driven by strong home health care and LTC segment growth, supported by major acquisitions and robust demographic demand.
Home health care average daily volumes increased 10.9%, with NOI margin improving by 90 bps to 13.5%.
Closed two major acquisitions: nine LTC homes and Closing the Gap, expanding capacity, service hours, and caregiver base.
Strategic capital recycling and redevelopment projects underway, with six LTC homes under construction and 18 more in planning.
Completed sale of three LTC projects for $56.3M, realizing an after-tax gain of $11.1M.
Financial highlights
Q2 2025 revenue increased 10% to $383.4M, driven by acquisitions, funding increases, and organic home care growth.
Q2 NOI rose $2.2M (4.1%) to $55.0M; adjusted EBITDA up $1.2M to $39.8M.
Q2 AFFO per share rose 23.1% year-over-year (excluding out-of-period items), with a payout ratio of 43–46%.
Net earnings increased $6.0M (23.3%) to $31.9M.
Home health care revenue up 16.4% year-over-year; LTC revenue up $12.9M; managed services NOI margin at 54.3%.
Outlook and guidance
Full benefit of recent acquisitions expected in Q3, with anticipated annualized NOI and AFFO per share accretion.
Targeting $1.1M in operating synergies from the home health acquisition in the first year.
Ontario's new LTC Home Capital Funding Policy provides greater funding flexibility and certainty for redevelopment.
Demographic trends indicate sustained demand, with the 85+ population expected to triple by 2051.
Planning to start construction on one new project in 2025 and up to three in 2026 under Ontario's new funding program.
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