Exco Technologies (XTC) Q3 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of year-over-year EBITDA and EPS growth, with net income rising 31% year-over-year to $8.1 million and EPS up to $0.21 from $0.16.

• Manufactures tooling for light metal industries and interior trim/accessories for automotive OEMs, operating 21 plants in 9 countries with over 5,000 employees.

• Strong growth profile driven by sustainability trends, OEM accessory sales, and agnostic to powertrain architecture.

• Innovation initiatives, including AI and machine learning, are driving significant efficiency gains across operations.

• Quarterly dividend of $0.105 per share declared, with share repurchases and dividend payments continued during the quarter.

Financial highlights

• Consolidated Q3 sales were $161.8 million, down 2% year-over-year; year-to-date sales reached $482.3 million, up from $459.2 million last year.

• LTM Q3 F2024 revenue reached C$643 million, EBITDA C$84 million (13% margin), and EPS C$0.80.

• Net income rose to $8.2 million (CAD 0.21/share), up 30% from $6.3 million (CAD 0.16/share) last year.

• Free cash flow for the quarter was $15.9 million after maintenance CapEx, with $22.7 million generated from operating activities.

• Ended quarter with $20.3 million in cash, $107.4 million in debt, and $44 million available on credit facility.

Outlook and guidance

• Targeting $750 million annual revenue, $120 million EBITDA, $1.50 EPS, and 16% EBITDA margin by fiscal 2026.

• Annual CapEx expected to be around CAD 36 million, lower than previous guidance.

• Expects strong organic earnings growth through margin expansion, efficiency initiatives, and greenfield maturity.

• Automotive production volumes expected to be flat to slightly down in H2 2024, with stability anticipated in 2025.

• No risk seen to 2026 targets despite delays in EV and GigaTooling demand.