XPEL (XPEL) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $112.9 million, up 9.9% year-over-year, with net income rising 9.1% to $14.9 million and EBITDA up 10% to $21.7 million.

• U.S. revenue reached $64.6 million, up 9.4%, while Canada posted 25.7% growth; all other regions (excluding U.S. and China) grew 17.3% year-over-year.

• Nine-month revenue rose 7.6% to $312.9 million, but net income declined 10.4% to $36.6 million due to higher operating expenses.

• Growth was driven by strong service and window film sales, with China sales lagging due to distributor inventory overhang.

• Completed acquisitions in India and Japan totaling $8.0 million, expanding installation and product reach.

Financial highlights

• Q3 gross margin improved to 42.5% from 40.4% year-over-year; EBITDA margin was 19.2%.

• Net income margin for Q3 was 13.2%; EPS was $0.54 per share, up from $0.49.

• Operating income increased 4.3% year-over-year to $18.4 million; operating margin was 16.3%.

• Window film revenue grew 20.6% to $22.6 million, the highest ever for this segment.

• Cash from operations for Q3 was $19.6 million; for nine months, $41.5 million.

Outlook and guidance

• Q4 revenue expected in the $105–$107 million range, with continued U.S. growth and lower China sales.

• Management expects sufficient liquidity for at least the next 12 months, supported by strong cash flow and $128.3 million in available credit.

• Gross margin expected to remain near current levels for year-end.

• New product launches (windshield protection, color change films) expected to impact 2025 more than 2024.