Extendicare Inc. Q3 2026 Earnings Recap

Extendicare’s shares rose 3.6% after earnings, as adjusted EBITDA of $71.7 million grew 41% year over year and came in ahead of consensus. Acquisition-led growth and lower leverage were positives, while Home Health margins remained below the prior year.

Key Takeaways

• Home Health volumes increased 111.5% year over year including acquisitions; excluding CBI, average daily volumes rose 18.8%.
• Home Health NOI margin was 13.1% after removing out-of-period revenue, up 20 basis points from Q2 but down 50 basis points year over year, reflecting technology and back-office investment and the absence of an Ontario rate increase.
• CBI contributed $153.3 million in revenue and $20.3 million in NOI; in its first six months after closing, it was tracking approximately 23% ahead of adjusted EBITDA and 25% ahead of volumes versus original underwriting.
• Extendicare paid down $53.7 million on its revolving credit facility, ending the quarter with 2.3x pro forma net debt to EBITDA and $246 million of available liquidity.
• Managed Services customer base grew 9.4% year over year, with NOI margin of 55.6%; management expects annualized margins of 50%–55%.