Author: Daymar Tenorio

• Record Consolidated Sales of $166.1 million;
• Net Income of $6.4 million and EBITDA of $19.7 million;
• Earnings per Share of $0.17 inclusive of $0.05 in restructuring charges;
• F2026 Financial Targets withdrawn due to tariff uncertainty
• Quarterly dividend of $0.105 per common share to be paid June 30, 2025.

TORONTO, April 30th, 2025 (GLOBE NEWSWIRE)

Exco Technologies Limited (TSX-XTC) today announced results for its second quarter of fiscal 2025 ended March 31, 2025. In addition, Exco announced a quarterly dividend of $0.105 per common share which will be paid on June 30, 2025 to shareholders of record on June 16, 2025. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

“We delivered solid results this quarter, highlighting the resilience of our businesses in challenging market conditions,” said Darren Kirk, Exco’s President and CEO. “While global trade uncertainty has prompted us to withdraw our Fiscal 2026 financial targets, we remain confident our strategic investments and strong competitive positioning leave us well-prepared to capitalize on growth opportunities over the longer term.”

Consolidated sales for the second quarter ended March 31, 2025 were $166.1 million compared to $163.8 million in the same quarter last year – an increase of $2.3 million, or 1%. The impact of foreign exchange rate changes increased consolidated sales $8.8 million in the quarter.

The Automotive Solutions segment reported sales of $82.9 million in the second quarter – a decrease of $2.9 million, or 3% from the prior year quarter. Foreign exchange rate changes increased segment sales in the quarter $4.8 million. Quarterly sales were modestly below the prior year level but increased by 15% sequentially. Results in the quarter were favorably impacted by strong seasonally adjusted annual rate (SAAR) figures in North America, reaching 17.7 million units in March, as well as partial inventory restocking of accessory products driven by this strong SAAR performance. However, despite this favorable performance, the global automotive market continues to be negatively affected by global tariff uncertainty, recessionary risks, environmental regulatory changes that may affect production and reduced consumer confidence. Near term industry growth may be moderated by these conditions, particularly the uncertainty surrounding US tariffs. Nonetheless, supportive factors include the potential for lower interest rates, continued resilience in vehicle sales, an aging vehicle fleet, and higher OEM incentives. Exco’s sales volumes are expected to benefit from recent and future program launches, contributing to continued growth in our content per vehicle, however the recently introduced US tariffs introduce significant uncertainty to our expectations. Despite the uncertainly, quoting activity remains encouraging.

The Casting and Extrusion segment reported sales of $83.2 million for the second quarter – an increase of $5.2 million or 7%, from the same period last year. Foreign exchange rate movements increased segment sales by $4.0 million in the quarter. Demand for our casting and extrusion products recovered in the second quarter as sales increased 17% from weaker conditions in the first quarter due primarily to December holiday shutdowns at our customers. Extrusion tooling sales were stable in the second quarter reflecting the diverse end markets this group ultimately supports, which includes building and construction activity, automotive, sustainable energy, transportation, recreational vehicles and electronic components. In the die-cast market, which primarily serves the automotive industry, demand and order flow for new moulds, and associated consumable tooling has declined as automotive manufacturers continue to put new product development and production on hold in part due to current political risks. That being said, sales for large moulds were very strong in the quarter as a high number of dies were shipped. While overall quoting activity remains decent, sales of die cast products in the short term will likely be negatively impacted as the automotive industry reacts to global tariffs and economic uncertainty. Demand for Exco’s additive (3D printed) tooling continues its steady contribution as customers focus on greater efficiency with the size and complexity of die-cast tooling continuing to increase with the rising adoption of giga-presses. Management is developing the benefits of its Castool greenfield locations in Morocco and Mexico which provide the opportunity to gain market share in Europe and Latin America through better proximity to local customers.

Consolidated net income for the second quarter was $6.4 million or basic and diluted earnings of $0.17 per share compared to $8.1 million or $0.21 per share in the same quarter last year – a decrease of net income of $1.7 million or 21%. Net income this quarter included $2.0 million ($0.05 EPS) of after-tax restructuring charges ($0.01 EPS the prior year). The consolidated effective income tax rate was 33.7% in the current quarter compared to 22.8% in the prior year quarter. 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.

The Automotive Solutions segment reported Pretax Profit of $7.8 million in the second quarter, a decrease of $0.5 million from the prior year quarter. Second quarter segment Pretax Profit increased sequentially 65% over the first quarter. Variances in period profitability were due to lower sales volumes, product mix shifts, and rising labour costs in all jurisdictions. Labour costs in Mexico have been particularly challenging in recent years and are seeing added pressure in fiscal 2025 given the significant rise in wage levels. In reaction to these challenges, the Company incurred incremental restructuring costs of $0.5 million in the quarter. These restructuring actions were taken in conjunction with the Company’s lean manufacturing principles and focus on automation, which will help the segment deal with the current production levels more efficiently and provide a strong base for future profitability when the market improves. Apart from these specific impacts, management is cautiously optimistic that its overall cost structure should improve margins as volumes recover and new programs ramp up. Pricing discipline remains a focus and action is being taken where possible – especially on new programs that are priced to reflect management’s expectations for higher future costs.

The Casting and Extrusion segment reported $4.5 million of Pretax Profit in the second quarter – a decrease of $1.0 million from the same quarter last year and an increase of $0.8 million from the first quarter fiscal 2025. The Pretax Profit reduction is primarily due to incremental restructuring costs of $1.6 million incurred during the second quarter, mainly related to head count reduction activity. Excluding the impact of the restructuring charges, segment Pretax Profits improved marginally. The underlying Pretax Profit improvement was due to program pricing improvements, favorable product mix and efficiency initiatives across the segment (including the ongoing use of lean manufacturing and automation to improve productivity through standardization and waste elimination), as well as foreign exchange rate gains from balance sheet impacts. In addition, volumes at Castool’s heat treatment operation continue to increase providing third-party revenues, savings and improved production quality while efficiency initiatives at Halex are progressing. Offsetting these cost improvements were ongoing losses at Castool’s greenfield operations. Management remains focused on reducing its overall cost structure and improving manufacturing efficiencies and expects such activities together with its sales efforts should lead to improved segment profitability over time.

Corporate segment expenses were $1.4 million in the second quarter compared to $1.2 million in the prior year quarter. The quarterly difference relates to lower foreign exchange gains in the current quarter compared to the prior year quarter.   

Consolidated EBITDA for the second quarter totaled $19.7 million compared to $21.2 million in the same quarter last year – a decrease of $1.5 million or 7%. Included in the second quarter results were the following incremental costs: $2.1 million restructuring costs, an estimated $1.0 million in disruption costs associated with the installation of the new heat treat equipment in Exco Michigan, and $1.2 million lower foreign exchange gains. Excluding the impact of these incremental costs, EBITDA increased 13% in the second quarter. For the quarter, EBITDA as a percentage of sales decreased to 11.8% in the current period compared to 13.0% the prior year driven by a decrease in Casting & Extrusion segment margins (13.5% compared to 15.5%) and the Automotive Solutions segment decreased slightly (11.8% compared to 12.0%).

Exco generated cash from operating activities of $8.7 million and Free Cash Flow of $3.1 million in the quarter compared to $17.3 million and $13.2 million respectfully in the prior year quarter. Maintenance Fixed Asset Additions were $4.4 million and interest was $1.2 million in the second quarter. During the quarter the Company invested $4.1 million in growth capital expenditures, $4.0 million in dividends, and $0.9 million in share buybacks. Exco ended the quarter with $18.1 million in cash, $82.0 million in bank and long-term debt and $51.4 million available in its credit facility, continuing Exco’s practice of maintaining a strong balance sheet and liquidity position.

Outlook

In light of the growing uncertainty surrounding global trade policy—particularly the outlook for tariffs—we are withdrawing our previously issued Fiscal 2026 revenue, EBITDA, and EPS targets. Although Exco has made meaningful progress toward achieving these targets since their announcement in Fiscal 2021, the current level of unpredictability around tariff implementation and scope, especially with respect to key jurisdictions such as the United States, makes it impractical to re-affirm these financial objectives at this time. That said, we continue to believe that the underlying strategic initiatives supporting our original targets remain intact and achievable over the longer term. Our greenfield investments, new program launches, organic market growth, and historical record of gaining market share are all expected to contribute to meaningful growth and margin expansion as conditions stabilize.

Importantly, we expect that products meeting United States-Mexico-Canada Agreement (USMCA) rules of origin will remain exempt from tariffs in the long term. Nearly all of Exco’s products sold within North America are USMCA compliant, which we believe places us in a favorable position to weather ongoing trade policy changes. With respect to our Casting and Extrusion segment, we maintain a substantial manufacturing presence within the U.S. market for our extrusion dies and large mould products, ensuring that we are well positioned should tariffs be applied beyond our current expectations. Furthermore, should higher tariffs on certain non-compliant jurisdictions—particularly China—persist, we believe Exco stands to benefit from a more competitive positioning relative to global peers.

We are also encouraged by broader macro trends in North America, particularly efforts to reshore industrial manufacturing. These initiatives are expected to increase demand for both extrusion and high-pressure die-cast (HPDC) tooling, which are key areas of strength for Exco. The combination of policy-driven reshoring, structural automotive trends, and our product positioning gives us confidence in our long-term outlook despite near-term headwinds.

For further information and prior year comparison please refer to the Company’s Second Quarter Condensed Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedarplus.ca.

Non-IFRS Measures:  In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Net Debt, Free Cash Flow and Maintenance Fixed Asset Additions which are not defined measures of financial performance under International Financial Reporting Standards (“IFRS”). A reconciliation to these non-GAAP measures is provided within this MD&A. Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes.  Net Debt represents the Company’s consolidated net indebtedness position offsetting cash from bank indebtedness, current and long-term debt. It is calculated as Long-term debt plus Current portion of Long-term debt plus Bank indebtedness less Cash and cash equivalents. Free Cash Flow is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions. Maintenance Fixed Asset Additions represent management’s estimate of the investment in fixed assets that is required for the Company to continue operating at current capacity levels. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) in recent years, the Company has modified its calculation of Free Cash Flow to include Maintenance Fixed Asset Additions and not total fixed asset purchases. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.

Quarterly Conference Call – May 1, 2025 at 9:30 a.m. (Toronto time):

To access the listen only live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/cfak3cqo a few minutes before the event. Those interested in participating in the question-and-answer conference call may register at https://register-conf.media-server.com/register/BI5bfbfeed182c445baa03c5d68c0bf911 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

About Exco Technologies Limited:

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 5,000 people and service a diverse and broad customer base.

Notice To Reader: Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, “estimate”, “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the outlook for 2026, are forward-looking statements. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current improving global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, the impact of the Russian invasion of Ukraine on the global financial, energy and automotive markets, including increased supply chain risks, assumptions about the demand for and number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, energy rationing in Europe, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure upon publication of each fiscal quarter’s financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com. 

TORONTO, April 08, 2025 (GLOBE NEWSWIRE)

Exco Technologies Limited (TSX – XTC) today announced that it will report its financial results for the second quarter ended March 31, 2025 after the close of business on Wednesday April 30, 2025.

Exco’s management will hold a conference call to discuss the results on Thursday May 1, 2025 at 9:30 a.m. To access the listen only live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/cfak3cqo a few minutes before the event. Those interested in participating in the question-and-answer conference call may register at https://register-conf.media-server.com/register/BI5bfbfeed182c445baa03c5d68c0bf911 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

For those unable to participate on May 1, 2025, an archived version will be available on the Exco website (www.excocorp.com) until May 16, 2025.

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 5,000 people and service a diverse and broad customer base.

TORONTO, Feb. 18, 2025 (GLOBE NEWSWIRE)

Exco Technologies Limited (TSX: XTC) (“Exco” or the “Company”) today announced that the Toronto Stock Exchange (“TSX”) has approved the Company’s normal course issuer bid (“NCIB”). Under the NCIB, Exco has the right to purchase for cancellation, from February 20, 2025 to February 19, 2026, a maximum of 1,770,513 common shares, representing 10% of the 17,705,131 shares forming Exco’s public float as at February 12, 2025. As of February 12, 2025, Exco had 38,501,112 common shares issued and outstanding.

Any shares purchased by Exco under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading systems, at prevailing market rates and any common shares purchased by the Company will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Exco. Any purchases made by Exco pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.

During the most recently-completed six months, the average daily trading volume for the common shares of Exco on the TSX was 18,359 shares. Consequently, under the policies of the TSX, Exco will have the right to repurchase under its NCIB, during any one trading day, a maximum of 4,589 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,780,000 common shares for the period of February 20, 2024 to February 19, 2025, the Company has purchased 356,400 common shares on the TSX as of February 12, 2025 at a weighted average purchase price of $7.63 per common share.

Exco’s Board of Directors believes the underlying value of the Company may not be reflected in the market price of its common shares from time to time and that, at appropriate times, repurchasing its shares through the NCIB may represent a good use of Exco’s financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. Thus, the Board has determined that the NCIB is in the best interest of the Company and its shareholders

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 5,000 people and service a diverse and broad customer base.

• Consolidated Sales of $146.6 million compared to $156.7 million the prior year
• Net Income of $4.2 million
• EPS of $0.11 compared to $0.15 last year
• EBITDA of $16.7 million compared to $18.1 million the prior year quarter
• Quarterly dividend of $0.105 per common share to be paid March 31, 2025

TORONTO, Jan. 29, 2025 (GLOBE NEWSWIRE)

Exco Technologies Limited (TSX-XTC) today announced results for its first quarter ended December 31, 2024. In addition, Exco announced a quarterly dividend of $0.105 per common share which will be paid on March 31, 2025 to shareholders of record on March 17, 2025. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

“While our first quarter presented headwinds, particularly in the automotive sector due to production adjustments, we remain confident in our long-term strategy. The underlying demand for our products remains strong, supported by secular trends like the increasing use of aluminum in many industries and the growth of OEM vehicle accessories. We remain focused on operational efficiency, innovation, and leveraging our recent strategic investments to capitalize on these trends and drive growth consistent with our previously stated targets,” said Darren Kirk, Exco’s President and CEO.

Consolidated sales for the first quarter ended December 31, 2024 were $143.6 million compared to $156.7 million in the same quarter last year – a decrease of $13.1 million or 8%. Foreign exchange rate movements increased sales $4.4 million in the quarter primarily due to the strengthening US dollar compared to the Canadian dollar.

The Automotive Solutions segment reported sales of $72.1 million in the first quarter – a decrease of $10.9 million, or 13% from the same quarter last year. Foreign exchange rate changes increased sales by $2.4 million. The sales decrease was driven by lower automotive production volumes in North America and Europe, customer driven delays in certain program launches, unfavorable vehicle mix, extended OEM customer plant shutdowns during the month of December and de-stocking of certain accessory products in the inventory channel. Industry growth may be tempered near term by softening global economic conditions and the potential impact of US tariffs. Countering these challenges, central banks have lowered interest rates and are expected to further decline over the next 12 months, vehicle sales have remained resilient, dealer inventory levels declined due to strong sales and production cuts in the last quarter, vehicle fleets continue to age, and OEM incentives are rising. Exco’s sales volumes will benefit from recent and future program launches that are expected to provide ongoing growth in our content per vehicle. Quoting activity also remains encouraging and we believe there is ample opportunity to achieve our targeted growth objectives.

The Casting and Extrusion segment reported sales of $71.4 million in the quarter – a decrease of $2.2 million, or 3% from the same period last year. Foreign exchange rate changes increased sales by $2.0 million. Demand for our extrusion tooling declined marginally in the quarter as the continued impact of higher interest rates and recessionary conditions in certain end markets such as building and construction and recreational vehicles caused an overall reduction in demand from extruders. Demand for capital equipment sold by Castool within the extrusion markets (such as containers and die ovens) was relatively stable as extruders focus on various efficiency and sustainability initiatives. Exco’s management remains focused on standardizing manufacturing processes, enhancing engineering depth and centralizing critical support functions across its various plants. As well, management is focused on developing the benefits of its new locations in Morocco and Mexico which provide the opportunity to expand market share in Europe and Latin America through better proximity to local customers. These initiatives have reduced lead times, enhanced product quality, expanded product breadth and increased capacity, contributing to market share gains. In the die-cast market, which primarily serves the automotive industry, demand was softer for new moulds, associated consumable tooling (shot sleeves, rods, rings, tips, etc.) and rebuild work as industry vehicle production declined and new electric vehicles and more efficient internal combustion engine/transmission platforms move ahead slowly as industry participants assess the impact of potential regulatory issues resulting from the US political landscape. Demand for Exco’s additive (3D printed) tooling continues its strong contribution as customers focus on greater efficiency with the size and complexity of die-cast tooling continuing to increase, helped by the rising adoption of giga-presses. Sales in the quarter were partially supported by price increases, which were implemented to protect margins from higher input costs. Quoting activity remains very encouraging and our backlog for die cast moulds remains healthy, though is off recent highs.

The Company’s first quarter consolidated net income decreased to $4.2 million or earnings of $0.11 per share compared to $5.6 million or earnings of $0.15 per share in the same quarter last year. The effective income tax rate was 35.8% in the current quarter compared 23.6% in the same quarter last year. 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.

The Automotive Solutions segment reported pretax profit of $4.8 million in the quarter – a decrease of $3.4 million, or 41% over the same quarter last year. The negative variance in the first quarter was due to lower sales, adverse product and vehicle mix shifts, and rising labour costs in all jurisdictions. Labour costs in Mexico have been particularly challenging in recent years and are seeing added pressure given the significant rise in wages. In North America, OEMs appeared to be managing inventory levels down with production stoppages and extended December shutdowns despite strong consumer sales levels. Whereas in Europe, production volumes declined to reflect lower sales activities as well as to clear out inventory levels in response to pending environmental mandates. Apart from these specific impacts, management is cautiously optimistic that its overall cost structure should improve margins as production volumes are expected to rebound to match vehicle sales figures in the future. Pricing discipline remains a focus and action is being taken where possible – especially on new programs that are priced to reflect management’s expectations for higher future costs.

The Casting and Extrusion segment reported $3.7 million of pretax profit in the quarter – an increase of $0.2 million or 4% from the same quarter last year. The pretax profit improvement is due to program pricing improvements, favorable product mix and efficiency initiatives across the segment (including the ongoing use of lean manufacturing and automation to improve productivity through standardization and waste elimination), as well as foreign exchange rate gains from balance sheet impacts. In addition, volumes at Castool’s heat treatment operation continue to increase providing savings and improved production quality while efficiency initiatives at Halex are progressing. Offsetting these cost improvements were losses at Castool’s greenfield operations and an increase in segment depreciation ($0.1 million for the quarter) associated with recent capital expenditures. In addition, volumes were uneven through the quarter, with levels of activity in December being lower than normal as customers extended plant shutdowns through the holiday period in response to weaker market conditions. Management remains focused on reducing its overall cost structure and improving manufacturing efficiencies and expects such activities together with its sales efforts should lead to improved segment profitability over time.

The Corporate segment expenses were $0.4 million in the quarter compared to $2.2 million in the prior year quarter due primarily to foreign exchange gains relating to the strengthening US dollar on balance sheet accounts. Consolidated EBITDA for the first quarter totaled $16.7 million compared to $18.1 million in the same quarter last year. EBITDA as a percentage of sales increased to 11.6% in the current quarter compared to 11.5% the prior year.

Operating cash flow before net changes in working capital was $14.4 million in the quarter compared to $16.5 million in the prior year quarter. The $2.1 million reduction was driven by a $1.4 million decrease in net income and a $0.7 million decrease in interest expense. Non-cash working capital consumed $4.0 million of cash in the quarter compared to $3.6 million in the same quarter last year. The non-cash working capital changes were driven by lower accounts payable and accruals partially offset by lower accounts receivable from improved collections and lower quarterly sales. Investment in fixed assets of $7.7 million compared to $11.9 million in the prior year quarter. Included in the current quarter was $2.5 million in growth capital. The change in capital expenditures reflects the timing of equipment deliveries. Exco ended the quarter with $76.5 million in net debt (long-term debt and bank indebtedness net of cash). The Company had $55.8 million in available liquidity under its banking facilities at December 31, 2024.

Outlook

By the end of fiscal 2026, Exco is targeting to produce approximately $750 million annual revenue, $120 million annual EBITDA and annual EPS of roughly $1.50. Exco has made significant progress towards achieving these targets since they were announced in Fiscal 2021 and continues to believe its targets remain obtainable. These targets are expected to be achieved through returns on greenfield and strategic initiatives, the launch of new programs, general market growth, and also market share gains consistent with the Company’s operating history.

Despite current macro-economic challenges, including slightly increasing levels of unemployment, relatively high interest rates, persistent inflation, and policy shifts which may occur related to the US election, the overall outlook is favorable across Exco’s segments into the medium term. Consumer demand for automotive vehicles remains stable in most markets. And while dealer inventory levels have required production adjustments in recent quarters, average transaction prices for both new and used vehicles remain firm, incentives are increasing and the average age of the broader fleet has continued to increase. This bodes well for strong levels of future vehicle production and the sales opportunity of Exco’s various automotive components and accessories. In addition, OEM’s are increasingly looking to the sale of higher margin accessory products as a means to enhance their own levels of profitability. Exco’s Automotive Solutions segment derives a significant amount of activity from such products and is a leader in the prototyping, development and marketing of the same. Moreover, the movement towards an electrified and hybrid fleet for both passenger and commercial vehicles is enticing new market entrants into the automotive market while causing traditional OEM incumbents to further differentiate their product offerings, all of which is driving above average opportunities for Exco.

With respect to Exco’s Casting and Extrusion segment, the intensifying global focus on environmental sustainability has created significant growth drivers that are expected to persist through at least the next decade. Automotive OEMs are utilizing light-weight metals such as aluminum to reduce vehicle weight and reduce carbon dioxide emissions. This trend is evident regardless of powertrain design – whether internal combustion engines, electric vehicles or hybrids. As well, a renewed focus on the efficiency of OEMs in their own manufacturing process is creating higher demand for advanced tooling that can enhance their profitability and sustainability goals. Certain OEM manufacturers have begun utilizing much larger die cast machines (giga-presses) to cast entire vehicle sub-frames using aluminum-based alloy rather than stamping, welding, and assembling separate pieces of ferrous metal. Exco is in discussions with several traditional OEMs and their tier providers who appear likely to follow this trend. While the growth of EV’s in North America and Europe has been delayed from prior expectations, contributing to a slower adoption of giga-presses, Exco nonetheless continues to expect these trends will occur and has positioned its operations to capitalize accordingly. Beyond the automotive industry, Exco’s extrusion tooling supports diverse industrial end markets which are also seeing increased demand for aluminum driven by environmental trends, including energy efficient buildings, solar panels, etc.

On the cost side, inflationary pressures have intensified post COVID while prompt availability of various input materials, components and labour has become more challenging. The intensity of these dynamics have generally moderated in recent quarters with the exception of labour costs in Mexico, which continue to see significant increases. We are offsetting these dynamics through various efficiency initiatives and taking pricing action where possible although there is typically several quarters of lag before the counter measures yield results.

The Russian invasion of Ukraine and the Middle East conflict have added additional uncertainty to the global economy. And while Exco has essentially no direct exposure to these countries, Ukraine does feed into the European automotive market and Europe has traditionally depended on Russia for its energy needs. Similarly, the conflict in the Middle East creates the potential for a renewed rise in the price of oil and other commodities as well as logistics costs and could weigh on consumer sentiment.

For further information and prior year comparison please refer to the Company’s First Quarter Financial Statements in the Investor Relations section posted at www.excocorp.com. Alternatively, please refer to www.sedarplus.ca.

Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Net Debt, Free Cash Flow and Maintenance Fixed Asset Additions which are not defined measures of financial performance under International Financial Reporting Standards (“IFRS”). A reconciliation to these non-GAAP measures is provided within this MD&A. Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes. Net Debt represents the Company’s consolidated net indebtedness position offsetting cash from bank indebtedness, current and long-term debt. It is calculated as Long-term debt plus Current portion of Long-term debt plus Bank indebtedness less Cash and cash equivalents. Free Cash Flow is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions. Maintenance Fixed Asset Additions represent management’s estimate of the investment in fixed assets that is required for the Company to continue operating at current capacity levels. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) in recent years, the Company has modified its calculation of Free Cash Flow to include Maintenance Fixed Asset Additions and not total fixed asset purchases. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs. EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers.

Quarterly Conference Call – January 30, 2025 at 10:00 a.m. (Toronto time):

To access the listen only live audio webcast, please log on to www.excocorp.com, or https://edge.media-server.com/mmc/p/op8dmkn5 a few minutes before the event. Those interested in participating in the question-and-answer conference call may register at https://register.vevent.com/register/BIa80706db716243a3a2ca1e49ff99cbb4 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

For those unable to participate on January 30, 2025, an archived version will be available on the Exco website until February 14, 2025.

About Exco Technologies Limited:

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 5,000 people and service a diverse and broad customer base.

Notice To Reader: Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, “estimate”, “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the outlook for 2026, are forward-looking statements. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current improving global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, the impact of the Russian invasion of Ukraine on the global financial, energy and automotive markets, including increased supply chain risks, assumptions about the demand for and number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, energy rationing in Europe, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure upon publication of each fiscal quarter’s financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com. 

TORONTO, Jan. 23, 2025 (GLOBE NEWSWIRE)  

Exco Technologies Limited (TSX-XTC) announced voting results from its 2024 annual meeting of shareholders held on January 22, 2025. A total of 25,621,079 Common Shares or 66.5% of our issued and outstanding Common Shares, were voted in connection with the meeting. Based on proxies received prior to the meeting, each director nominee was elected by a substantial majority as follows:

Full results of the votes are included as Appendix A to this press release.

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 5,000 people and service a diverse and broad customer base.

Appendix A

VOTING RESULTS – 2024 ANNUAL MEETING OF SHAREHOLDERS

Notes:

(1) Based on proxies submitted
(2) 286,048 shares were not voted for Directors
(3) 25,621,079 shares(66.5%) were voted by proxy

TORONTO, Jan. 13, 2025 (GLOBE NEWSWIRE)

Exco Technologies Limited (TSX – XTC) announced today that it will report its financial results for the first quarter, which ended December 31, 2024, after the close of business on Wednesday, January 29, 2025.

Exco’s management will hold a conference call to discuss the results on Thursday January 30, 2025 at 10:00 a.m. To access the listen only live audio webcast, please log on to www.excocorp.com or https://edge.media-server.com/mmc/p/op8dmkn5 a few minutes before the event. Those interested in participating in the question-and-answer conference call may register at https://register.vevent.com/register/BIa80706db716243a3a2ca1e49ff99cbb4 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

For those unable to participate on January 30, 2025, an archived version will be available on the Exco website until February 14, 2025.

As a reminder, the Annual Meeting of Shareholders of Exco Technologies Limited will be held virtually on Wednesday January 22, 2025 at 4:30 p.m. (Toronto time). Participants can access the virtual Annual Meeting through the following link: https://virtual-meetings.tsxtrust.com/1721.

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 5,000 people and service a diverse and broad customer base.

About Exco Technologies Limited:

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 5,000 people and service a diverse and broad customer base.

Notice To Reader: Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe”, “estimate”, “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook and financial performance of the Company’s business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the outlook for 2026, are forward-looking statements. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the current improving global economic recovery from the COVID-19 pandemic and containment of any future or similar outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, the impact of the Russian invasion of Ukraine on the global financial and automotive markets, including increased supply chain risks, assumptions about the number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability. Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure upon publication of each fiscal quarter’s financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco’s risks and uncertainties see the ‘Risks and Uncertainties’ section in our latest Annual Report, Annual Information Form (“AIF”) and other reports and securities filings made by the Company. This information is available at www.sedar.com or www.excocorp.com.