Exco Technologies Ltd

F:3XT

Record quarter: Exco reported third-quarter sales of $165 million, up 7% year over year, and EBITDA of $18.5 million, up 26%, with margin expanding to 11.2%.

Margins improved: The casting and extrusion segment drove much of the profit improvement, helped by pricing discipline, operational efficiency, and cost actions.

Exco Energy launch: Management officially launched Exco Energy to pursue opportunities in Canadian nuclear and other technically demanding markets, calling it one of the most exciting developments in years.

Backlog and demand: Die-cast backlog remains above historical levels, extrusion demand is supported by construction, transportation, renewables, electrical, and AI infrastructure, and quoting activity increased across the business.

Near-term headwinds: Automotive profitability was pressured by product mix, labor, energy, and supply chain costs, while die-cast results were held back by timing delays, Mexico facility closure costs, and lower margins on some large jobs.

Capital discipline: After several years of heavy investment, capital spending is now moderating; 2026 capex is expected to be about $20 million, focused mostly on maintenance and productivity.