SEDAR Interim Financial Statements

CASTING AND EXTRUSION AUTOMOTIVE SOLUTIONS Unaudited Condensed Interim Report to the shareholders for the three months ended December 31, 2025 NOTICE TO READER The attached unaudited condensed interim consolidated financial statements have been prepared by management of the Company. The condensed interim consolidated financial statements for the three month period ended December 31, 2025 and 2024 have not been reviewed by the auditors of the Company. EXCO TECHNOLOGIES LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) $ (000)'s As at As at December 31, 2025 September 30, 2025 ASSETS Current Cash and cash equivalents $24,629 $22,871 Accounts receivable 103,579 114,918 Inventories 104,642 103,062 Prepaid expenses and deposits 4,201 5,188 Derivative instruments 997 617 Income taxes recoverable 2,316 2,057 Total current assets 240,364 248,713 Property, plant and equipment, net (note 4) 231,607 237,132 Intangible assets, net (note 5) 23,968 25,325 Goodwill (note 5) 98,138 99,626 Deferred tax assets 3,435 3,445 Total assets $597,512 $614,241 LIABILITIES AND SHAREHOLDERS' EQUITY Current Bank indebtedness $1,778 $- Trade accounts payable 39,174 46,906 Accrued payroll liabilities 13,423 18,775 Other accrued liabilities 12,592 13,459 Provisions 10,364 10,705 Customer advance payments 2,835 2,314 Total current liabilities 80,166 92,159 Lease liabilities- long-term portion 6,992 7,127 Long-term debt (note 7) 90,000 90,000 Deferred tax liabilities 17,732 17,705 Total liabilities 194,890 206,991 Shareholders' equity Share capital (note 8) 47,529 47,664 Contributed surplus 6,133 6,112 Accumulated other comprehensive income 32,635 37,402 Retained earnings 316,325 316,072 Total shareholders' equity 402,622 407,250 Total liabilities and shareholders' equity $597,512 $614,241 The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements. EXCO TECHNOLOGIES LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) $ (000)'s except for income per common share 2025 2024 Sales $149,522 $143,568 Cost of sales 118,246 116,199 Selling, general and administrative expenses 13,951 10,688 Depreciation (note 4) 8,153 7,562 Amortization (note 5) 1,093 1,077 Gain on disposal of property, plant and equipment (25) (30) Interest expense, net 1,014 1,455 142,432 136,951 Income before income taxes 7,090 6,617 2,258 2,372 Net income for the period 4,832 4,245 Other comprehensive income Items that may be reclassified to profit or loss in subsequent periods: Net unrealized gain (loss) on derivatives designated as cash flow hedges (a) 280 (1,807) Unrealized gain (loss) on foreign currency translation (5,047) 10,296 (4,767) 8,489 Comprehensive income $65 $12,734 Income per common share Basic $0.13 $0.11 Diluted $0.13 $0.11 Weighted average number of common shares outstanding (,000)'s Basic 37,937 38,534 Diluted 37,937 38,534 (a) Net of income tax receivable of $100 for the three- month period ended December 31, 2025 (2024 - net of income tax receivable of $645 for the three- period ended December 31, 2024) The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements. Provision for income taxes (note 11) December 31 Three months ended EXCO TECHNOLOGIES LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) $ (000)'s Share capital Contributed surplus Retained earni --- ngs Net unrealized gain on derivatives designated as cash flow hedges Unrealized gain (loss) on foreign currency translation Total accumulated other comprehensive income (loss) Total shareholders' equity Balance, October 1, 2025 $47,664 $6,112 $316,072 $453 $36,949 $37,402 $407,250 Net income for the period - - 4,832 - - - 4,832 Dividend paid (note 3) - - (3,982) - - - (3,982) Stock option expense - 21 - - - - 21 Repurchase of share capital (note 8) (135) - (597) - - - (732) Other comprehensive income (loss) - - - 280 (5,047) (4,767) (4,767) Balance, December 31, 2025 $47,529 $6,133 $316,325 $733 $31,902 $32,635 $402,622 Share capital Contributed surplus Retained earnings Net unrealized gain (loss) on derivatives designated as cash flow hedges Unrealized gain (loss) on foreign currency translation Total accumulated other comprehensive income (loss) Total shareholders' equity Balance, October 1, 2024 $48,315 $6,010 $310,699 ($634) $16,882 $16,248 $381,272 Net income for the period - - 4,245 - - - 4,245 Dividend paid (note 3) - - (4,046) - - - (4,046) Stock option expense - 43 - - - - 43 Repurchase of share capital (note 8) (25) - (132) - - - (157) Other comprehensive (loss) - - - (1,807) 10,296 8,489 8,489 Balance, December 31, 2024 $48,290 $6,053 $310,766 ($2,441) $27,178 $24,737 $389,846 Net income for the period - - 6,421 - - - 6,421 Dividend paid (note 3) (4,031) - (4,031) Stock option expense 24 - 24 Repurchase of share capital (note 8) (171) (745) (916) Other comprehensive (loss) 859 6,239 7,098 7,098 Balance, March 31, 2025 $48,119 $6,077 $312,411 ($1,582) $33,417 $31,835 $398,442 Net income for the period - - 5,399 - - - 5,399 Dividends paid (note 3) - - (4,014) - - - (4,014) Stock option expense - 11 - - - - 11 Repurchase of share capital (note 8) (208) (861) - - - (1,069) Other comprehensive income (loss) - - - 1,884 (4,387) (2,503) (2,503) Balance, June 30, 2025 $47,911 $6,088 $312,935 $302 $29,030 $29,332 $396,266 Net income for the period 8,227 - - - 8,227 Dividends (note 3) (3,998) - - - (3,998) Stock option expense 24 - - - - 24 Repurchase of share capital (note 8) (247) (1,092) - - - (1,339) Other comprehensive income (loss) - - - 151 7,919 8,070 8,070 Balance, September 30, 2025 $47,664 $6,112 $316,072 $453 $36,949 $37,402 $407,250 The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements. Accumulated other comprehensive income Accumulated other comprehensive income EXCO TECHNOLOGIES LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) $ (000)'s 2025 2024 OPERATING ACTIVITIES: Net income for the period $4,832 $4,245 Add non-operating and items not involving a current outlay of cash Depreciation 8,153 7,562 Amortization 1,093 1,077 Stock-based compensation 196 124 Deferred income taxes (162) (14) Net interest expense 1,014 1,455 Gain on disposal of property, plant and equipment (25) (30) 15,101 14,419 Net change in non-cash working capital (note 10) (4,935) (4,026) Cash provided by operating activities 10,166 10,393 FINANCING ACTIVITIES: Increase in bank indebtedness 1,778 673 Repayment of long-term debt - (10,000) Interest paid, net (1,014) (1,455) Dividends paid (3,982) (4,046) Repurchase of share capital (732) (157) (3,950) (14,985) INVESTING ACTIVITIES: Purchase of property, plant and equipment (4,420) (7,710) Purchase of intangible assets (89) (78) Proceeds from disposal of property, plant and equipment 40 121 Cash used in investing activ --- ities (4,469) (7,667) Effect of exchange rate changes on cash and cash equivalents 11 (182) Net increase (decrease) in cash during the period 1,758 (12,441) Cash, beginning of period 22,871 31,637 Cash, end of period $24,629 $19,196 The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements. Cash used in financing activities Three months ended December 31 EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts 1. CORPORATE INFORMATION Exco Technologies Limited (the “Company”) is a global designer, developer and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. Through 21 strategic locations in 9 countries, the Company services a diverse and broad customer base. The Company is incorporated and domiciled in Canada. The registered office is located at 130 Spy Court, Markham, Ontario, Canada. 2. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION Basis of preparation These unaudited condensed interim consolidated financial statements present the Company’s financial results of operations and financial position as at and for the three - month period ended December 31, 2025 and have been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). The accounting policies used in preparing these unaudited condensed interim financial statements are consistent with those used in the preparation of the 2025 audited annual consolidated financial statements. The Company’s preparation of unaudited condensed interim financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the application of the Company’s accounting policies. The Company’s critical accounting estimates are affected as a result of the global tariff uncertainty, various ongoing economic, geopolitical and social impacts, and recessionary conditions. There continues to be significant uncertainty as to the likely effects these items which may, among other things, impact our employees, suppliers, and customers and the carrying values of our assets and liabilities. It is not possible to predict the impact these items will have on the Company, its financial position and the results of operations in the future. The Company is monitoring the future impact of all these items on all aspects of its business. Each reporting period, management carries out this assessment for indications that goodwill and other long-lived assets may be impaired. As required, management will continue to assess these assumptions as the situation changes. These unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s 2025 audited annual consolidated financial statements, which are available at www.sedarplus.ca and on the Corporation’s website at www.excocorp.com. The unaudited condensed interim consolidated financial statements and accompanying notes for the three - month period ended December 31, 2025 were authorized for issue by the Board of Directors on January 28, 2026. 3. CASH DIVIDEND During the three- month period ended December 31, 2025, the Company paid quarterly cash dividends totaling $3,982 (2024 - $4,245). The quarterly dividend rate --- in the first quarter of 2026 was $0.105 per common share (2025 - $0.105). EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts 4. PROPERTY, PLANT AND EQUIPMENT Machinery and Equipment Tools Buildings Land Assets under Construction Right of Use Assets TOTAL Cost Balance as at September 30, 2025 339,632 31,384 124,431 15,423 14,671 11,032 536,573 Additions 474 549 571 - 2,548 278 4,420 Less: disposals (941) (99) - - - (53) (1,093) Reclassification 8,448 463 16 - (8,927) - - Foreign exchange movement (2,255) (226) (945) (133) (139) (156) (3,854) Balance as at December 31, 2025 345,358 32,071 124,073 15,290 8,153 11,101 536,046 Machinery and Equipment Tools Buildings Land Assets under Construction Right of Use Assets TOTAL Accumulated depreciation and impairment losses Balance as at September 30, 2025 212,457 23,235 60,548 - - 3,201 299,441 Depreciation 5,974 723 1,217 - - 239 8,153 Less: disposals (926) (99) - - - (53) (1,078) Foreign exchange movement (1,432) (179) (420) - - (46) (2,077) Balance as at December 31, 2025 216,073 23,680 61,345 - - 3,341 304,439 Carrying amounts Machinery and Equipment Tools Buildings Land Assets under Construction Right of Use Assets TOTAL As at September 30, 2025 127,175 8,149 63,883 15,423 14,671 7,831 237,132 As at December 31, 2025 129,285 8,391 62,728 15,290 8,153 7,760 231,607 5. INTANGIBLE ASSETS AND GOODWILL Computer Software and Other Acquisition Intangibles* Assets under Construction (Software) Total Intangible Assets Goodwill Cost Balance as at September 30, 2025 $9,944 $60,902 $147 $70,993 $99,626 Additions 89 - - 89 - Less: disposals - - - - - Reclassification 111 - (111) - - Foreign exchange movement (52) (863) (1) (916) (1,488) Balance as at December 31, 2025 $10,092 $60,039 $35 $70,166 $98,138 EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts Computer Software and Other Acquisition Intangibles* Assets under Construction (Software) Total Intangible Assets Goodwill Accumulated amortization and impairment losses Balance as at September 30, 2025 $8,614 $37,054 $- $45,668 $- Amortization for the period 210 883 - 1,093 - Less: disposals - - - - - Foreign exchange movement (47) (516) - (563) - Balance as at December 31, 2025 $8,777 $37,421 $- $46,198 $- Carrying amounts As at September 30, 2025 $1,330 $23,848 $147 $25,325 $99,626 As at December 31, 2025 $1,315 $22,618 $35 $23,968 $98,138 *Acquisition intangibles are composed of customer relationships and trade names resulting from business acquisitions and the purchase price allocation thereof. 6. FINANCIAL INSTRUMENTS Fair value represents point-in-time estimates that may change in subsequent reporting periods due to market conditions or other factors. Presented below is a comparison of the fair value of each financial instrument to its carrying value. The fair value of cash and cash equivalents, bank indebtedness, trade and other receivables and trade and other payables approximates their carrying amounts due to the short-term maturities of these instruments. The estimated fair value of long- term debt approximates its carrying value since debt is subject to terms and conditions similar to those available to the Company for instruments with comparable terms, and the interest rates are variable and a reflection of market-based rates. The fair value of derivative instruments that are not t --- raded in an active market such as over-the-counter foreign exchange options and collars is determined using quoted forward exchange rates at the consolidated statement of financial position dates and are Level 2 instruments. During the three- month period ended December 31, 2025 there were no transfers between Level 1 and Level 2 fair value measurements. The carrying value and fair value of all financial instruments are as follows: December 31, 2025 September 30, 2025 Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Cash and cash equivalents $24,629 $24,629 $22,871 $22,871 Accounts receivable 103,579 103,579 114,918 114,918 Bank indebtedness (1,778) (1,778) Trade accounts payable (39,174) (39,174) (46,906) (46,906) Customer advance payments (2,835) (2,835) (2,314) (2,314) Accrued liabilities (26,015) (26,015) (32,234) (32,234) Derivative instruments 997 997 617 617 Long-term debt ($90,000) ($90,000) ($90,000) ($90,000) EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts 7. LONG-TERM DEBT On March 25, 2024, the Company renewed the Committed Revolving Credit Facility (“the Credit Facility”) of $150,000 to extend the maturity date to March 25, 2027. As at December 31, 2025, $91,778 was utilized (September 30, 2025 - $90,000). The facility is collateralized by a general security agreement covering all assets of the Company’s subsidiaries located in Canada and the US, with the exception of real property. The Credit Facility is available to fund working capital, capital expenditures and other general corporate purposes of the Company and its subsidiaries, including acquisitions. Interest rates vary based on prime, bankers’ acceptance or CORRA base rates plus a relevant margin depending on the level of the Company’s net leverage ratio and as at December 31, 2025 average interest rate was 4.2% (Q1-2025 - 5.2%). Pursuant to the terms of the Credit Facility, Exco is required to maintain compliance with certain financial covenants. The Company was in compliance with these covenants as at December 31, 2025. 8. SHARE CAPITAL In each of February 2025 and 2024 the Company received approval from the Toronto Stock Exchange for a normal course issuer bid for the following 12-month period. The Company’s Board of Directors authorized the purchase of up to 1,770,513 and 1,780,000 common shares under each of these normal course issuer bids, respectively, which represented approximately 5% of the Company’s outstanding common shares at each approval date. During the first quarter 107,880 common shares were repurchased (2025- 19,850). As at December 31, 2025 the Company had 37,924,832 common shares issued and outstanding. 9. SEGMENTED INFORMATION Business segments The Company operates in two reportable business segments: Casting and Extrusion Technology (“Casting and Extrusion”) and Automotive Solutions. The Casting and Extrusion segment is comprised of Extrusion Technologies, Casting Technologies, and Castool (extrusion and casting technology), which serve to design, develop and manufacture tooling and consumable parts for both die-casting and aluminum extrusion machines for industrial applications and serve automotive markets globally. The aggregation of the above operating segments reflects, in the view of management, the similarity in economic characteristics as well the similar products so --- ld and a comparable class of customers. The Automotive Solutions segment produces automotive interior components and assemblies primarily for seating, cargo storage and restraint for sale to automotive manufacturers and Tier 1 suppliers (suppliers to automakers). The Company evaluates the performance of its operating segments primarily based on net income before interest, other income (expense) and income tax expense. The Company evaluates the performance of its operating segments primarily based on pre-tax income before interest. The Corporate segment involves administrative expenses that are not directly related to the business activities of the above two operating segments. EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts Three Months Ended December 31, 2025 Casting and Extrusion Automotive Solutions Corporate Total Sales $75,669 $79,592 $- $155,261 Intercompany sales (5,479) (260) - (5,739) Net sales 70,190 79,332 - 149,522 Depreciation 6,881 1,248 24 8,153 Amortization 375 718 - 1,093 Segment pre-tax income (loss) before interest 3,506 6,517 (1,919) 8,104 Net interest expense (1,014) Income before income taxes 7,090 Property, plant and equipment additions 2,954 1,450 16 4,420 Property, plant and equipment, net 187,653 42,736 1,218 231,607 Intangible asset additions 50 39 - 89 Intangible assets, net 9,602 14,366 - 23,968 Goodwill 31,318 66,820 - 98,138 Total assets 396,313 233,814 (32,615) 597,512 Total liabilities 4869 50,085 96,106 194,890 Three Months Ended December 31, 2024 Casting and Extrusion Automotive Solutions Corporate Total Sales $77,459 $72,766 $- $150,225 Intercompany sales (6,016) (641) - (6,657) Net sales 71,443 72,125 - 143,568 Depreciation 6,358 1,204 - 7,562 Amortization 357 720 - 1,077 Segment pre-tax income (loss) before interest 3,740 4,762 (430) 8,072 Net interest expense (1,455) Income before income taxes 6,617 Property, plant and equipment additions 6,305 1,273 132 7,710 Property, plant and equipment, net 190,177 38,053 1,299 229,529 Intangible asset additions 73 5 - 78 Intangible assets, net 10,009 17,861 - 27,870 Goodwill 29,058 67,114 - 96,172 Total assets 400,162 227,061 (32,219) 595,004 Total liabilities 54,009 47,144 104,005 205,158 EXCO TECHNOLOGIES LIMITED NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) $(000)’s except per share amounts 10. NET CHANGE IN NON-CASH WORKING CAPITAL Three Months Ended December 31 2025 2024 Accounts receivable $10,276 $8,553 Inventories (2,716) 2,547 Prepaid expenses and deposits 939 675 Trade accounts payable (7,176) (7,655) Accrued payroll and taxes (5,145) (5,784) Other accrued liabilities (1,027) (1,710) Provisions (341) 87 Customer advance payments 551 267 Income taxes payable (296) (1,006) ($4,935) ($4,026) 11. INCOME TAXES The consolidated effective income tax rates for the three- month period ended December 31, 2025 was 31.8% (three- month period ended December 31, 2025 – 35.8%). The change in income tax rate in the quarter was impacted by geographic distribution, foreign tax rate differentials and losses that cannot be tax affected for accounting purposes. CORPORATE INFORMATION Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 21 strategic locations in 9 countries, we employ approximately 4,500 people and service a diverse and broad customer base. Telephone: 90 --- 5-477-3065 Fax: 905-477-2449 Web: www.excocorp.com TORONTO STOCK EXCHANGE LISTING TSX:XTC DIRECTORS Edward H. Kernaghan Darren M. Kirk, President and CEO Robert B. Magee, Lead Director Colleen M. McMorrow Brian A. Robbins, Executive Chairman Tommy J. Skudutis CORPORATE OFFICERS Brian A. Robbins, PEng Executive Chairman Darren M. Kirk, CFA, MBA President and CEO Matthew Posno, CPA, CA, MBA Vice President Finance, CFO and Secretary TRANSFER AGENT TSX Trust Company 301-100 Adelaide Street West Toronto, Ontario M5H 4H1 Shareholder Inquiries: Telephone: 1-866-600-5869 Email: [email protected] Web: www.tsxtrust.com