Canada's Exco Technologies Q3 sales misses estimates

Exco Technologies

30/07/2025 22:13

Overview

Exco fiscal Q3 sales decline 4% yr/yr, missing analyst expectations, per LSEG data

Net income for fiscal Q3 falls 34% yr/yr, reflecting challenging market conditions

Company generated strong free cash flow, maintaining robust balance sheet

Outlook

Exco previously withdrew fiscal 2026 revenue, EBITDA, and EPS targets due to tariff uncertainty in Q2

Company expects USMCA-compliant products to remain tariff-exempt long-term

Exco anticipates benefiting from North American reshoring trends

Result Drivers

CUSTOMER DELAYS - Sales in the Automotive Solutions segment decreased due to customer-driven delays in program launches and unfavorable vehicle mix, as well as lower production volumes in North America and Europe

WEAKENED DEMAND - Demand for die-cast tooling declined due to OEMs postponing new product development and launches amid soft consumer demand for EVs, political uncertainties, and tariff risks

FOREIGN EXCHANGE IMPACT - Foreign exchange rate changes positively impacted sales by C$3.1 mln in the quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
C$154.90 mln
C$155.70 mln (2 Analysts)
Q3 EPS
C$0.14
Q3 Net Income
C$5.40 mln
Q3 Cash Flow from Operating Activities
C$25.20 mln
Q3 Dividend
C$0.105
Q3 EBITDA
C$14.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Exco Technologies Ltd is C$7.75, about 10.6% above its July 29 closing price of C$6.93

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nGNX3Sj5pg

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)