Extendicare (EXE) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong organic growth and a full quarter impact from recent acquisitions, including the $75.1 million Closing the Gap deal, which added 1,200 caregivers, 1.1 million annual service hours, and exceeded revenue and NOI expectations.

• Margin improvements were seen across all segments, with home healthcare volumes at ParaMed rising 13% year-over-year, the largest organic growth to date, driven by demographic trends and capacity constraints in long-term care.

• Strategic M&A, operational execution, and disciplined capital allocation underpinned performance, with targeted annualized cost synergies of $1.1 million from the Closing the Gap acquisition.

• Adjusted EBITDA, excluding out-of-period items, rose 36.6% year-over-year to $46.9 million.

• AFFO per share (basic), excluding out-of-period items, increased 19.3% year-over-year to $0.309.

Financial highlights

• Q3 2025 revenue was $440.3 million, up 22.6% year-over-year, driven by acquisitions and organic growth.

• Adjusted EBITDA reached $50.8 million, a 40.6% increase year-over-year.

• Net earnings were $24.1 million, up 48.0% from the prior year.

• Q3 NOI improved to $65.9 million, up 31.5%, with acquisitions contributing $6.3 million.

• Home healthcare revenue grew 35% year-over-year, with NOI up 63.2%.

Outlook and guidance

• Ongoing demographic trends and long-term care waitlists are expected to sustain demand for home healthcare, with no meaningful decline in waitlists projected for the next few years.

• The company remains focused on scalable growth, with flexibility to pursue further acquisitions and is advancing 18 redevelopment projects under Ontario’s new LTC Home Capital Funding Policy.

• Six LTC homes under construction, replacing 1,097 Class C beds with 1,408 new beds.

• Breaking ground on a new home in Sudbury in Q4 2025, with three new homes opened since Q1 2024.

• Anticipates $1.1 million in annualized cost synergies from the Closing the Gap acquisition in the first year.