Exco Technologies (XTC) investor relations material

Executive summary

• Q3 consolidated sales reached $165.4 million, up 7% year-over-year, setting a new Q3 record, with FX-adjusted revenue up 6%.

• EBITDA rose 26% to $18.5 million, with margin expanding to 11.2% due to improvements in Casting and Extrusion, despite margin compression in Automotive Solutions.

• Net income was $5.8 million ($0.15/share), including $0.02/share in restructuring charges.

• Exco Energy was officially launched, targeting the Canadian nuclear sector and other advanced markets.

• Capital spending has moderated as major investments in facilities and technology are now complete.

Financial highlights

• Consolidated sales increased by $10.6 million to $165.4 million, with FX contributing $1.9 million.

• EBITDA margin improved to 11.2% from 9.5% year-over-year.

• Free cash flow was $9.7 million, down from $20.1 million last year due to higher working capital use.

• Net debt stood at $63.9 million, with $26.1 million in cash and $61.6 million available under the credit facility.

• EPS was $0.15, up from $0.14 year-over-year, with prior year taxes favorably impacted by R&D credits.

Outlook and guidance

• Q4 expected to reflect normal seasonality due to OEM summer shutdowns and European vacations.

• Management anticipates higher utilization, stronger earnings, and improved cash generation ahead, with favorable outlook for Casting & Extrusion.

• Fiscal 2026 capital expenditures expected to be about $20 million, focused on maintenance and select growth, down from $36 million in fiscal 2025.

• Products compliant with USMCA rules are expected to remain well positioned amid evolving trade policies.