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1. Company Snapshot

1.a. Company Description

Exco Technologies Limited, together with its subsidiaries, designs, develops, and manufactures dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries.It operates through two segments, Casting and Extrusion, and Automotive Solutions.The Casting and Extrusion segment designs, develops, and manufactures tooling and consumable parts for aluminum die-casting and aluminum extrusion machines.


It has operations in North America, South America, Morocco, and Thailand; and serves automotive and industrial markets worldwide.The Automotive Solutions segment produces automotive interior trim components and assemblies primarily for passenger and light truck vehicles.This segment offers synthetic net and other cargo restraint products, injection-molded components, shift/brake boots, instrument panel components, sun visors, seat covers, head rests, other cut and sew products, and related interior trim components and assemblies.


This segment also supplies plastic trunk trays and organizer systems, floor mats, and bumper covers, as well as die cut leather sets for seating applications.It has operations in Canada, the United States, Europe, Mexico, South America, Asia, and internationally.Exco Technologies Limited was founded in 1952 and is based in Markham, Canada.

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1.b. Last Insights on XTC

Exco Technologies Limited's recent performance was negatively impacted by the withdrawal of its F2026 financial targets due to tariff uncertainty. This uncertainty has created a sense of caution among investors, leading to a decrease in confidence in the company's future prospects. Additionally, the announcement of restructuring charges, which contributed to a lower earnings per share, has also weighed on the company's performance. Furthermore, the company's decision to withdraw its financial targets suggests a lack of clarity on its future growth prospects, which has likely contributed to the negative sentiment surrounding the company.

1.c. Company Highlights

2. 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.

Publication Date: Dec -02

📋 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.

3. NewsRoom

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Exco Technologies Ltd (EXCOF) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...

Nov -27

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Exco Technologies Fiscal Q4 Earnings Fall on Lower Revenue

Nov -26

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Exco Technologies Limited Announces Results for Fourth Quarter and Year Ended September 30, 2025

Nov -26

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Exco Technologies Limited Announces Fourth Quarter Results on November 26, 2025

Nov -05

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Is It Too Late To Consider Buying Exco Technologies Limited (TSE:XTC)?

Aug -24

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Exco Technologies (TSE:XTC) Is Due To Pay A Dividend Of CA$0.105

Aug -03

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Exco Technologies Third Quarter 2025 Earnings: EPS: CA$0.14 (vs CA$0.21 in 3Q 2024)

Aug -01

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Exco Results for Third Quarter Ended June 30, 2025

Jul -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.94%)

6. Segments

Automotive Solutions

Expected Growth: 4%

Exco Technologies' Automotive Solutions segment growth is driven by increasing demand for electric vehicles, autonomous driving, and advanced safety features. Additionally, the company's focus on lightweighting and sustainability solutions resonates with OEMs' efforts to reduce emissions and improve fuel efficiency. Further, Exco's diversified customer base and expanding presence in emerging markets contribute to its growth momentum.

Casting and Extrusion

Expected Growth: 6%

Exco Technologies' Casting and Extrusion segment growth is driven by increasing demand for lightweight aluminum products in the automotive industry, supported by stringent fuel efficiency regulations. Additionally, growth in the aerospace sector and rising adoption of electric vehicles are contributing to the segment's 6% growth rate.

7. Detailed Products

Automotive Solutions

Exco Technologies Limited provides automotive solutions for interior and exterior components, including instrument panels, door trim, and other interior components.

Industrial Solutions

Exco Technologies Limited offers industrial solutions for various industries, including aerospace, medical, and industrial equipment.

Castings and Forgings

Exco Technologies Limited provides castings and forgings for various industries, including automotive, industrial, and aerospace.

Extrusion Tooling

Exco Technologies Limited designs and manufactures extrusion tooling for the production of aluminum and copper products.

Die-Casting

Exco Technologies Limited provides die-casting solutions for the production of aluminum and zinc parts.

Molded Products

Exco Technologies Limited manufactures molded products, including plastic and rubber components.

8. Exco Technologies Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Exco Technologies Limited is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Exco Technologies Limited is high due to the concentration of customers in the automotive and industrial markets.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Exco Technologies Limited is low due to the company's large scale of operations and diversified supplier base.

Threat Of New Entrants

The threat of new entrants for Exco Technologies Limited is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Exco Technologies Limited is high due to the competitive nature of the industry, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.87%
Debt Cost 9.15%
Equity Weight 76.13%
Equity Cost 9.85%
WACC 9.68%
Leverage 31.36%

11. Quality Control: Exco Technologies Limited passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Exco Technologies

A-Score: 6.8/10

Value: 8.5

Growth: 5.3

Quality: 5.1

Yield: 10.0

Momentum: 3.0

Volatility: 8.7

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A-Score: 6.4/10

Value: 5.8

Growth: 3.7

Quality: 5.7

Yield: 8.0

Momentum: 7.0

Volatility: 8.0

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Standard Motor Products

A-Score: 5.6/10

Value: 5.4

Growth: 3.3

Quality: 3.8

Yield: 6.0

Momentum: 8.5

Volatility: 6.7

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Strattec Security

A-Score: 5.6/10

Value: 7.9

Growth: 6.7

Quality: 6.0

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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Miller Industries

A-Score: 5.2/10

Value: 7.3

Growth: 6.4

Quality: 5.7

Yield: 4.0

Momentum: 1.0

Volatility: 6.7

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Martinrea

A-Score: 5.0/10

Value: 9.3

Growth: 4.1

Quality: 2.8

Yield: 3.0

Momentum: 4.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.78$

Current Price

6.78$

Potential

-0.00%

Expected Cash-Flows