Exco Results for Third Quarter Ended June 30, 2025

Executive Summary

• Exco Technologies Limited reported third-quarter fiscal 2025 results ending June 30, 2025, showing a decline in sales and net income compared to the prior year quarter, driven by customer delays, softer demand, and unfavorable foreign exchange impacts.
• The company declared a quarterly dividend of $0.105 per common share, payable on September 29, 2025, to shareholders of record on September 15, 2025.
• Despite lower profitability, the company generated strong free cash flow of $20.1 million and maintained a solid balance sheet with $23.5 million in cash and $56.6 million available in its credit facility.

Key Details

• Financial Performance (Q3 2025 vs Q3 2024):
  • Consolidated Sales: $154.9 million (down 4% from $161.8 million).
  • Net Income: $5.4 million (down from $8.2 million).
  • Earnings Per Share (Basic/Diluted): $0.14 (down from $0.21).
  • EBITDA: $14.7 million (down 34% from $22.3 million).
  • EBITDA Margin: 9.5% (down from 13.8%).
• Segment Performance:
  • Automotive Solutions: Sales of $80.8 million (down $2.1 million). Pretax profit of $7.4 million (down $0.8 million). Decline attributed to customer-driven delays, unfavorable vehicle mix, and rising labor costs, particularly in Mexico.
  • Casting and Extrusion: Sales of $74.0 million (down $4.9 million or 6%). Pretax profit of $2.6 million (down $4.5 million or 63%). Decline driven by lower demand for die-cast tooling, $1.0 million in outsourcing costs for heat treatment, $0.5 million in restructuring expenses, and $1.6 million in foreign exchange losses.
• Cash Flow and Balance Sheet:
  • Cash from Operating Activities: $25.2 million.
  • Free Cash Flow: $20.1 million (up from $15.9 million).
  • Maintenance Fixed Asset Additions: $3.9 million.
  • Growth Capital Expenditures: $4.5 million.
  • Dividends Paid: $4.0 million.
  • Share Buybacks: $1.1 million.
  • Cash Position: $23.5 million.
  • Long-term Debt: $95.0 million.
  • Available Credit Facility: $56.6 million.
• Dividend Declaration:
  • Quarterly dividend of $0.105 per common share.
  • Payable on September 29, 2025.
  • Record date: September 15, 2025.
  • Classified as an “eligible dividend” under the Income Tax Act of Canada.
• Outlook and Strategy:
  • Fiscal 2026 revenue, EBITDA, and EPS targets were previously withdrawn due to uncertainty surrounding global trade policy and tariffs.
  • Company remains positioned to benefit from USMCA compliance, reshoring trends, and potential tariff advantages against non-compliant foreign suppliers.
  • Management expects fourth-quarter results to follow typical seasonality trends due to OEM summer shutdowns.

Notable Quotes

• “I am pleased with Exco’s resilience this quarter as we navigated challenging market conditions, customer delays, softer demand, and ongoing trade uncertainties... Our strategic initiatives... will allow us to capitalize on reshoring trends and potential tariff opportunities over the longer term.” — Darren Kirk, President and CEO