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 in Q2 2026, primarily from home health care acquisitions and LTC funding increases.

• 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 a Sudbury LTC project, 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; adjusted net earnings up $15.6 million to $36.4 million.

• AFFO per share (excluding stock-based comp) increased 52.9% to $0.448; payout ratio at 34%.

• Six-month revenue: $1,076.3 million, up $318.2 million; Adjusted EBITDA: $121.2 million, up $45.8 million.

• CBI contributed $145.7 million in revenue and $18.5 million in adjusted EBITDA.

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 home health care organic growth to moderate to 6%-8% annually, in line with demographic trends.

• Pipeline of 17 redevelopment projects representing over 3,700 beds to replace ~1,600 Class C beds.

• Four new LTC homes (832 beds) scheduled to open in 2027; additional projects in planning.

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