Extendicare (EXE) ran 11% on its Q1 print, which crushed estimates on the back of near-35% growth in home health care - partly due to its $570M CBI deal…

… but mostly driven by persistently high organic growth, the duration of which has surprised management…

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I’ll candidly say that we expected the volume growth to moderate long before now. It has been a surprise to us, you know, to the degree to which it has, you know, continued to increase, and we just don’t know when it will slow down.

Michael Guerriere (CEO) - EXE Q1/26 call

… and helped the margin profile, given the segment runs at better unit economics than the long-term care business.

While management expects a return to high single-digit growth is on the horizon, investors are looking further out - pricing EXE at its peak forward EBITDA multiple.

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