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Exco Technologies: Exco Technologies Limited: A Resilient Player in a Challenging Landscape

Exco Technologies Limited reported Q4 2025 revenue of $150.7 million, down 3% from the prior year, with foreign exchange movements increasing sales by $4.1 million. Consolidated EBITDA was $18 million, or 11.9% of sales, compared to $20.6 million or 13% in Q4 2024. Net income was $8.2 million or $0.22 per share, up from $7.7 million or $0.20 per share in Q4 2024, beating analyst estimates of $0.12 per share. For the full year, revenue was approximately $615 million, with EBITDA of nearly $70 million and earnings per share of $0.63. The company's financial performance was marked by a decline in revenue, but an increase in net income, driven by cost management and operational efficiency.

XTC.TO

CAD 6.8

0.29%

A-Score: 6.8/10

Publication date: November 27, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Decline Amidst FX Gains Q4 2025 revenue fell 3% to $150.7M, though foreign exchange boosted sales by $4.1M compared to prior year.
  • EBITDA Margin Contraction Consolidated EBITDA dipped to $18M (11.9% of sales) from $20.6M (13%) in Q4 2024, reflecting margin pressure.
  • Net Income and EPS Growth Net income rose to $8.2M ($0.22/share) from $7.7M ($0.20/share) in Q4 2024, driven by improved profitability.
  • Strong Full-Year Free Cash Flow Generated $41M in free cash flow, returned $20M to shareholders, and reduced net debt to $67.1M, with $16M allocated to growth capex.
  • Segment-Wide Demand Shifts Die-cast tooling demand softened for 9 months, but quoting activity and 3D printing demand are rebounding, with benefits expected in Q1-Q2 2026.

Segmental Performance

The Automotive Solutions segment saw a 2% decline in sales, primarily due to customer-driven launch delays and unfavorable vehicle mix. The Casting and Extrusion segment reported a 5% decrease in sales, with extrusion tooling sales increasing, but die-cast tooling sales remaining soft. However, the company is seeing constructive developments, including a robust recovery in quoting and award activity in die casting, and growing demand for 3D printed tooling.

Cash Flow and Balance Sheet

The company generated $41 million in free cash flow, investing $16 million in growth capital expenditures, returning $20 million to shareholders, and reducing net debt to $67.1 million. Exco's balance sheet remains strong, with $61.6 million in available liquidity, and the company is focused on long-term growth, investing in automation, process standardization, and technology innovation.

Outlook and Valuation

Analysts estimate next year's revenue growth at 4.2%. With a P/E Ratio of 10.63 and an EV/EBITDA of 4.62, the company's valuation appears reasonable. The Dividend Yield of 6.36% and Free Cash Flow Yield of 15.67% are also attractive. As the company continues to invest in growth areas and explore strategic M&A opportunities, its strong balance sheet and cash flow generation position it well for long-term success.

Growth Initiatives

Regarding CapEx for fiscal '26, the company expects to spend around $27-28 million, watching it closely as it has invested heavily in growth areas in recent years. On M&A, the company is strategic and looking for targets that fit within its value stream, particularly in the automotive accessory market, and will only pursue opportunities that provide accretive value and can be properly managed.

Exco Technologies's A-Score