Extendicare (EXE) Q1 2026 earnings summary

Executive summary

• Q1 2026 results reflect strong execution of strategy, with organic growth in Home Healthcare, successful acquisitions including CBI Home Health and Closing the Gap, and progress in long-term care redevelopment through joint ventures.

• Adjusted EBITDA excluding out-of-period items rose 52.2% year-over-year to $44.2 million, with reported Adjusted EBITDA at $52.9 million, up 48.5% from Q1 2025.

• Net earnings surged 171% to $40.7 million compared to Q1 2025.

• Closed the $570 million CBI acquisition and issued $450 million in senior unsecured notes at 4.345%, maturing April 2031, enhancing growth opportunities and capital flexibility.

• Integration of recent acquisitions and continued focus on high-quality care and deleveraging are key priorities for the remainder of the year.

Financial highlights

• Consolidated Q1 revenue rose 24.2% year-over-year to $465.2 million, driven by 32.7% Home Healthcare volume growth and acquisitions.

• Excluding out-of-period items, Q1 NOI increased by $16.7 million or 38.3%, and adjusted EBITDA rose by $15.2 million or 52%.

• Q1 AFFO improved by 65% to $32.7 million; AFFO per share was $0.276, up 56% year-over-year.

• Payout ratio declined to 41% on a trailing 12-month basis.

• Adjusted EBITDA margin improved to 11.4% (up from 9.5% year-over-year).

Outlook and guidance

• Expectation of continued strong demand driven by demographic trends and hospital capacity pressures.

• Organic Home Healthcare growth anticipated to moderate but remains robust; integration of CBI and Closing the Gap is a focus.

• Two new long-term care homes scheduled to open in 2026, with a pipeline of 17 projects representing over 3,700 beds.

• Further investments in technology and back office planned to support sustained growth and operating leverage.