Extendicare Announces 2025 Fourth Quarter and Full Year Results and Dividend Increase

Executive Summary

• Extendicare reported Q4 2025 Adjusted EBITDA of $45.6 M (up 36.4% YoY) and full‑year Adjusted EBITDA of $160.6 M (up 24.3% YoY).
• The company completed a private placement of 10.64 M common shares at $18.80 each, raising ~$200 M gross ($191.5 M net), to fund the pending acquisition of CBI Home Health for $570 M.
• A 5% increase in the monthly dividend to 4.41 cents per share was announced; the CBI acquisition is expected to close in Q2 2026, with projected accretion to AFFO per share of ~20%.

Key Details

• Q4 2025 Financial Highlights
• Revenue: $462.0 M (↑19.9% YoY, excl. out‑of‑period items)
• NOI: $65.7 M (↑30.2% YoY, excl. out‑of‑period items)
• Adjusted EBITDA: $45.6 M (↑36.4% YoY, excl. out‑of‑period items)
• Net earnings: $25.6 M (↑28.4% YoY)

• AFFO: $29.6 M ($0.337 per basic share)

• Full‑Year 2025 Financial Highlights

• Revenue: $1,660.4 M (↑14.6% YoY, excl. out‑of‑period items)
• NOI: $236.8 M (↑19.1% YoY, excl. out‑of‑period items)
• Adjusted EBITDA: $160.6 M (↑24.3% YoY, excl. out‑of‑period items)
• Net earnings: $96.7 M (↑28.5% YoY)

• AFFO: $103.7 M ($1.214 per basic share)

• Private Placement

• Shares issued: 10,640,000 common shares
• Issue price: $18.80 per share
• Gross proceeds: ≈$200.0 M; net proceeds: $191.5 M (after costs)

• Use of proceeds: partially fund the CBI Home Health acquisition

• CBI Home Health Acquisition

• Purchase price: $570.0 M cash + ~​$13.6 M lease liabilities (IFRS 16)
• Expected close: Q2 2026, subject to regulatory approvals and consents
• Financing: Upsized senior secured credit facility ($214.5 M) plus cash on hand and private‑placement proceeds
• CBI FY‑ended July 31 2025 metrics: Revenue ≈$477.9 M; Adjusted EBITDA ≈$61.9 M (12.9% margin)
• Purchase price multiple: ~9.4× Adjusted EBITDA (≈8.4× after projected $7.4 M synergies)

• Expected run‑rate synergies: $5–7 M annually from IT integration; additional $5–7 M long‑term productivity gains

• Dividend

• Monthly dividend increased 5% to 4.41 cents per share, effective March 2026 (previous increase also 5%)

• Liquidity & Capital Structure

• Cash & cash equivalents (excluding restricted cash): $347.9 M at year‑end 2025, inclusive of private‑placement net proceeds
• Revolving credit facility availability: $153.5 M

• Senior secured credit facility upsized to $214.5 M for acquisition financing

• Operational Metrics

• Home health care ADV Q4 2025: 39,440 (↑27.3% YoY) – includes 3,700 from “Closing the Gap” transaction
• LTC occupancy Q4 2025: 98.0% (flat YoY)

• Managed services revenue Q4 2025: $15.3 M (↓18.9% YoY) due to sale of Revera‑operated homes

• Conference Call

• Date & time: February 27 2026, 11:30 a.m. EDT; webcast available on Extendicare website.

Notable Quotes

“Our fourth quarter results build on our strong performance throughout 2025… Based on our positive growth trajectory and the strength of our balance sheet, we have increased our dividend by 5% again this year.” – Dr. Michael Guerriere, President & CEO

“The regulatory approval process for the CBI Home Health acquisition is progressing and we anticipate closing the transaction in early Q2… the $200 M equity offering … and the $214.5 M credit facility upsizing provide continued flexibility to allocate capital and drive growth.” – Dr. Michael Guerriere, President & CEO