Extendicare (EXE) Q4 2025 earnings summary

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, stable long-term care occupancy at 98%, and successful acquisitions.

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

• Announced a 5% dividend increase, the second consecutive annual increase, reflecting sustained performance and a strong balance sheet.

• 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.

• Construction underway for 1,728 new LTC beds across 7 homes, with two new homes set to open in 2026 and further redevelopment projects advancing.

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 AFFO per share was $0.301, up 6% year-over-year, with payout ratios of 42% for Q4 and 46% for the full year.

• 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).

• Home health care Q4 2025 revenue increased 33.6% to $197.5 million; NOI margin improved to 16.0%.

• Long-term care Q4 2025 revenue increased 10.8% to $249.3 million; NOI margin was 10.3%.

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 at closing of CBI acquisition estimated at 2.7–2.9x, maintaining strong liquidity and credit metrics.

• Guidance for cash taxes in 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.