Extendicare (EXE) investor relations material

Executive summary

• Adjusted EBITDA for Q4 2025 rose 36.4% year-over-year to $45.6 million, driven by strong organic growth in home health care and stable long-term care occupancy at 98%, with significant contributions from acquisitions.

• Revenue for Q4 2025 increased by $70.5 million (+18%) to $462.0 million, with robust performance from home health care and LTC segments.

• Net earnings for Q4 2025 grew 28.4% year-over-year to $25.6 million; full-year net earnings rose 28.5% to $96.7 million.

• Announced a 5% increase to the monthly dividend, marking the second consecutive year of dividend growth and reflecting sustained operating performance.

• Major acquisition of CBI Home Health for $570 million will create the largest home health care platform in Canada, expected to be accretive to AFFO and EPS.

Financial highlights

• Q4 2025 Adjusted EBITDA (excluding out-of-period items) was $45.6 million (9.9% margin), up from $33.4 million (8.7%).

• Q4 2025 revenue was $462.0 million; full-year revenue was $1,660.4 million, up 14.6% year-over-year (excluding out-of-period funding).

• Q4 2025 AFFO per share was $0.301, up 6% year-over-year, with a payout ratio of 46% for the year.

• Q4 2025 NOI improved by $14.3 million (30.2%) excluding out-of-period items, with $8.6 million contribution from acquisitions.

• Home health care Q4 2025 revenue up 33.6% to $197.5 million, with NOI up 75.3% and margin expansion.

Outlook and guidance

• CBI Home Health acquisition expected to close in Q2 2026, with anticipated annualized run-rate synergies of $7.4 million within two years and further $5–7 million over the longer term.

• Pro forma total debt to Adjusted EBITDA projected at 2.7x–2.9x post-acquisition, maintaining strong credit metrics.

• Cash tax guidance for 2026 remains at 24%–27% of pre-tax FFO.

• Focus for 2026 will be on integrating recent acquisitions, with a pause on further M&A until 2027.

• Dividend increased by 5% to 4.41 cents per share, effective March 2026, with potential for further increases based on continued strong performance.