Extendicare (EXE) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 42.6% to $627.8M; Adjusted EBITDA increased 41.2% to $71.7M and net earnings rose 41.8% to $34.2M.

• Excluding out-of-period items, revenue increased 43.3% to $625.3M and Adjusted EBITDA rose 47.7% to $69.2M.

• Home health growth, including CBI and organic volume gains, led results; strong operating cash flow reduced leverage as integration focus shifts to CBI.

Financial highlights

• Net earnings were $34.2M; adjusted net earnings rose 40.4% to $39.6M, or $0.410 per diluted share.

• FFO per diluted share was $0.450, up 25.7%; AFFO per diluted share was $0.449, up 30.1%.

• Excluding out-of-period items, FFO rose 52.1% to $41.6M, or $0.431 per diluted share.

• Nine-month revenue increased to $1,704.1M and Adjusted EBITDA to $192.9M; excluding out-of-period items, Adjusted EBITDA rose 57.1% to $184.2M.

• Nine-month CBI revenue since its April 1 acquisition was ~$299.1M.

Outlook and guidance

• CBI finance and IT integration is targeted for Jan. 1, 2027; phased care-team integration is planned through 2027.

• Four of five Axium JV long-term care homes under construction are expected to open in 2027, adding 832 beds; the five projects total 1,152 beds and replace 862 Class C beds.

• A 17-project pipeline represents more than ~3,700 beds replacing ~1,900 Class C beds; the next 256-bed Ottawa project is targeted to break ground in Spring 2027.