XPEL (XPEL) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached $420.4 million, up 6.1% year-over-year, impacted by macro headwinds, China dynamics, and economic softness in Europe and other regions.

• Q4 2024 revenue rose 1.9% to $107.5 million; excluding China, Q4 revenue increased 10.5%, with the U.S. up 6.2% to $59.1 million.

• OEM revenue declined slightly due to Rivian program changes, but excluding this, OEM business grew approximately 16% in Q4.

• China revenue was $9.2 million in Q4, down from $16.6 million in Q4 2023, reflecting a tough comparison and inventory management changes.

• Completed distributor acquisitions in Japan, Thailand, and India, advancing direct market presence.

Financial highlights

• Q4 overall revenue growth was 1.9%; product revenue flat, but up 10.9% excluding China.

• Window film product line grew 32.9% in Q4, with automotive up 31.7% to $14.3 million.

• Service revenue increased 9.4% and installation revenue grew 16.1% year-over-year in Q4.

• Q4 EBITDA declined over 19% to $14.3 million (13.3% margin); normalized for FX, EBITDA down ~9% (14.3% margin).

• Net income for Q4 declined 25.7% to $8.9 million (8.3% margin); EPS $0.32, or $0.35 normalized for FX.

• Full-year net income declined 13.8% to $45.5 million (10.8% margin); EPS $1.65.

• Cash flow from operations was $6.3 million in Q4 and $47.8 million for the year.

Outlook and guidance

• 2025 outlook described as mixed and more uncertain than normal due to macroeconomic and regulatory factors.

• Q1 2025 revenue is expected to be approximately $97–$99 million.

• Gross margin expected to remain around 42%, with some pressure from FX and tariffs.

• SG&A growth to be tightly managed, with further cost optimizations and workforce reductions already implemented.

• Focus on expanding services business, especially in new car dealerships, and leveraging direct market presence.