Exco Results for Third Quarter Ended June 30, 2026
Rhea-AI Summary
Exco (OTCQX:EXCOF, TSX:XTC) reported third-quarter 2026 sales of $165.4 million, up 7% year over year, with EBITDA rising 26% to $18.5 million. Net income was $5.8 million or $0.15 per share, including $0.02 per share of restructuring charges.
Automotive Solutions sales grew 9% to $88.3 million, while Casting and Extrusion sales rose about 4% to $77.1 million. EBITDA margin improved to 11.2%. Exco generated $13.4 million in operating cash flow and $9.7 million in free cash flow, ended the quarter with $26.1 million cash and $63.9 million net debt, and expects fiscal 2026 capital expenditures of roughly $20 million, down from $36 million in 2025.
The company launched Exco Energy to target Canadian nuclear and other advanced markets and declared a quarterly dividend of $0.105 per share, payable September 29, 2026 to shareholders of record on September 15, 2026.
Positive
- Q3 2026 sales up 7% to $165.4 million
- EBITDA up 26% to $18.5 million; margin improved to 11.2%
- Casting and Extrusion pretax profit up 97% to $5.1 million
- Automotive Solutions sales up 9% to $88.3 million
- Capital expenditures expected at ~$20 million in 2026 vs. $36 million in 2025
- Quarterly dividend of $0.105 per share declared for September 29, 2026
Negative
- Automotive Solutions pretax profit down $0.8 million to $6.5 million
- Free cash flow down to $9.7 million from $20.1 million year over year
- Restructuring charges of $0.6 million after tax in the quarter
- Effective tax rate increased to 30% from a 13% recovery prior year
- Net debt of $63.9 million at quarter end
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Consolidated Sales of
$165.4 million , an increase of7% over the prior-year quarter; - EBITDA increased
26% to$18.5 million , compared with$14.7 million ; - Launched Exco Energy: Leveraging Exco’s precision-machining and additive-manufacturing capabilities to pursue opportunities in nuclear and other advanced markets. Exco hosted the Government of Canada’s Nuclear Energy Strategy announcement on June 22, 2026.
- Net Income of
$5.8 million and Earnings per Share of$0.15 , including$0.02 per share in restructuring charges; - Quarterly dividend of
$0.105 per common share to be paid September 29, 2026.
TORONTO, July 29, 2026 (GLOBE NEWSWIRE) -- Exco Technologies Limited (TSX-XTC) today announced results for its third quarter of fiscal 2026 ended June 30, 2026. In addition, Exco announced a quarterly dividend of
| Three Months Ended June 30 | Nine Months Ended June 30 | |||||||
| (in $ thousands except per share amounts) | ||||||||
| 2026 | 2025 | 2026 | 2025 | |||||
| Sales | $ | 165,444 | $ | 154,882 | $ | 472,525 | $ | 464,567 |
| Net income for the period | $ | 5,769 | $ | 5,399 | $ | 16,390 | $ | 16,065 |
| Earnings per share: Basic and Diluted – Reported | $ | 0.15 | $ | 0.14 | $ | 0.43 | $ | 0.42 |
| EBITDA | $ | 18,504 | $ | 14,690 | $ | 53,846 | $ | 51,056 |
“Exco delivered solid progress in the third quarter, with consolidated sales increasing
Consolidated sales for the third quarter ended June 30, 2026 were
The Automotive Solutions segment reported third-quarter sales of
The Casting and Extrusion segment reported third-quarter sales of
Consolidated net income for the third quarter was
The Automotive Solutions segment reported third-quarter Pretax Profit of
The Casting and Extrusion segment reported third-quarter Pretax Profit of
Corporate segment expenses were
Consolidated EBITDA for the third quarter totaled
Exco generated cash from operating activities of
Outlook
Exco continues to operate in an environment characterized by uncertainty surrounding global trade policy, tariffs, geopolitical developments and broader macroeconomic conditions. These factors may create volatility in customer demand, input costs and pricing and may limit visibility into near-term performance. Management remains focused on long-term growth, margin expansion and improved returns on capital through the maturation of greenfield investments, new program launches, organic market growth, operational efficiency initiatives and continued market-share gains. Improving returns on capital is a Company-wide priority, particularly within the Casting and Extrusion segment, where recent investments are expected to support higher utilization, earnings and cash generation as demand develops.
Management expects products that comply with the United States-Mexico-Canada Agreement (USMCA) rules of origin to remain favourably positioned under current and evolving trade frameworks. As nearly all of Exco’s products sold within North America comply with USMCA requirements, the Company believes it is well positioned to navigate ongoing trade policy developments. Exco also maintains a substantial U.S. manufacturing footprint for extrusion dies and large mould products, providing additional flexibility should tariff policies evolve. If elevated tariffs on imports from non-compliant jurisdictions, particularly China, persist, Exco may benefit from improved competitive positioning relative to certain global peers.
Exco is encouraged by increasing initiatives to reshore industrial manufacturing in North America, which are expected to support demand for extrusion and high-pressure die-cast tooling. Within the Casting and Extrusion segment, the above-historical die-cast backlog, resilient extrusion tooling demand, customer investment in additional press capacity and ongoing reshoring activity provide a favourable foundation for growth. As backlog converts to shipments, utilization increases across newer facilities and operating initiatives advance, management expects improved profitability and stronger returns on capital. Together with structural automotive trends, continued program launches and the Company’s expanded product and manufacturing capabilities, these factors support confidence in Exco’s long-term outlook despite near-term uncertainty.
Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Net Debt, Free Cash Flow and Maintenance Fixed Asset Additions which are not defined measures of financial performance under International Financial Reporting Standards (“IFRS”). A reconciliation to these non-GAAP measures is provided within this MD&A. Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes. Net Debt represents the Company’s consolidated net indebtedness position offsetting cash from bank indebtedness, current and long-term debt. It is calculated as Long-term debt plus Current portion of Long-term debt plus Bank indebtedness less Cash and cash equivalents. Free Cash Flow is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions. Maintenance Fixed Asset Additions represent management’s estimate of the investment in fixed assets that is required for the Company to continue operating at current capacity levels. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) in recent years, the Company has modified its calculation of Free Cash Flow to include Maintenance Fixed Asset Additions and not total fixed asset purchases. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.
Quarterly Conference Call – July 30, 2026 at 10:00 a.m. (Toronto time):
To access the listen only live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/bfdrj9r8 a few minutes before the event. Those interested in participating in the question-and-answer conference call may register at https://register-conf.media-server.com/register/BIb6056eb6cbc44feaa4b8d7c9080e8df1 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).
For those unable to participate on July 30, 2026, an archived version will be available on the Exco website until August 14, 2026.
Source: Exco Technologies Limited (TSX-XTC)
Contact: Matthew Posno, CFO
Telephone: (905) 477-3065 Ext. 7265
Website: https://www.excocorp.com
About Exco Technologies Limited:
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 20 strategic locations in 9 countries, we employ approximately 4,400 people and service a diverse and broad customer base.
Notice To Reader: Forward Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as "anticipate", "may", "will", "should", "expect", "believe", "estimate", “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook and financial performance of the Company's business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the revised outlook for fiscal 2026, are forward-looking statements. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the global economic recovery from any future outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, the impact of international conflicts on the global financial, energy and automotive markets, including increased supply chain risks, assumptions about the demand for and number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, energy rationing in Europe, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability, recoverability of capital assets, goodwill and intangibles (based on numerous assumptions inherently uncertain), and cyber security and its impact on Exco’s operations. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure upon publication of each fiscal quarter's financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco's risks and uncertainties see the 'Risks and Uncertainties' section in our latest Annual Report, Annual Information Form ("AIF") and other reports and securities filings made by the Company. This information is available at www.sedarplus.ca or www.excocorp.com.
