ATCO Adjusted Earnings Rise to $112 Million as Brookdale Loss Narrows to $13.9 Million
Key Facts
ATCO reported adjusted earnings of $112 million, or $1.00 per share, in the third quarter of 2026, compared with $103 million and $0.92 per share in the same period of 2025, according to a company statement published via Newswire Canada. In mixed results during the corporate earnings season, Brookdale Senior Living said its net loss fell to $13.9 million from $114.7 million a year earlier, according to its statement via PR Newswire. Brookdale also reported adjusted earnings before interest, taxes, depreciation and amortization of $124.3 million, up 12% year over year. The results show different paths for profitability: adjusted earnings improved at both companies, while ATCO reported lower earnings under International Financial Reporting Standards. Brookdale combined improvement in adjusted operating earnings with a cut to its annual outlook.
ATCO’s earnings under International Financial Reporting Standards were $83 million, or $0.74 per share, compared with $85 million and $0.76 per share in the third quarter of 2025. The company said it excluded from adjusted earnings items including $30 million related to a regulatory decision on reopening a review, $18 million for an adjustment to past service costs for post-employment benefits, and $9 million in asset impairments. The gap between growth in the adjusted measure and a decline in reported accounting profit highlights the importance of the items the company detailed in its results presentation. On dividends, ATCO announced on October 8 a fourth-quarter dividend of 51.96 cents per share, equivalent to $2.08 per share annually. The company said a live call to discuss results was scheduled for November 6 at 10:00 a.m. Alberta time, with a question-and-answer session for analysts.
At Brookdale, consolidated resident fees fell to $707.3 million in the third quarter of 2026 from $775.1 million a year earlier, a decline of 8.7%, according to the results statement. But metrics at comparable communities moved in the opposite direction: resident fees rose 5.3% to $693 million, while operating expenses at comparable facilities increased 4.5% to $490.5 million. Consolidated weighted average occupancy also rose 130 basis points to 83.1%. Revenue per available room, the company’s measure of operating revenue per room, increased 7.5% to $5,546. These operating improvements coincided with growth in adjusted earnings before interest, taxes, depreciation and amortization, despite the decline in total resident fees.
Chief Executive Nick Stengle said Brookdale achieved its quarterly plan for adjusted earnings before interest, taxes, depreciation and amortization, but missed its target for revenue per available room because occupancy growth slowed, particularly late in the quarter. He said: "We achieved our quarterly plan for adjusted earnings before interest, taxes, depreciation and amortization, but missed our target for revenue per available room because occupancy growth slowed." The company cut its 2026 revenue per available room growth forecast to a range of 7.4%–7.9% from 8.0%–9.0% previously. It also lowered its adjusted earnings before interest, taxes, depreciation and amortization forecast to $495–$502 million, from $502–$516 million. Brookdale linked the updated outlook to the carryover effect of third-quarter occupancy, additional marketing investments, and the expected impact of a recent fire at its community in Clinton, Mississippi, which has 97 units.
In a development involving its leased portfolio, Brookdale agreed in October 2026 to buy 30 communities it leases, comprising 1,152 units, for $290 million. The company expects the deal to reduce annual cash rent payments in 2027 by about $17.8 million. Total liquidity was $523.6 million on September 30, including $323.4 million in unrestricted cash and $175.6 million available under a secured credit facility. In the stock market, Brookdale shares closed at $10.81 on November 5, 2026, according to EL7 data. These figures provide financial and operating context for the company’s results and revised full-year outlook.