Exco Technologies Ltd
TSX:XTC
Exco Technologies Ltd
Exco Technologies Ltd. engages in the designing, development and manufacturing of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. The company is headquartered in Markham, Ontario and currently employs 4,700 full-time employees. The firm operates through two segments: Casting and Extrusion Technology (Casting and Extrusion) and Automotive Solutions. The Casting and Extrusion segment designs and engineers tooling and other manufacturing equipment. The segment operations are for automotive and other industrial markets in North America. The Automotive Solutions segment produces automotive interior components and assemblies primarily for seating, cargo storage and restraint for sale to automotive manufacturers and tier one suppliers. The firm operates in approximately 15 strategic locations around seven countries and serves various customer base.
Revenue Drop: Exco’s sales for Q3 fell 4% year-over-year to $154.9 million, reflecting weaker automotive production and trade-related headwinds.
Profitability Pressured: Net income dropped 34% to $5.4 million, with results impacted by lower die-cast sales, product mix, and restructuring costs.
Tariff Uncertainty: Tariffs and global trade tensions hurt volumes, but new US trade deals have set a 15% baseline tariff—less severe than feared—and brought some stability.
Restructuring Actions: Cost controls and headcount reductions were implemented, especially in Automotive Solutions, to offset rising labor costs. Payback on restructuring is expected within a year.
CapEx Moderation: Capital spending for 2025 is expected to come in 10–15% below the $40 million target, with future years moving to maintenance-level outlays.
Balance Sheet Strength: The company ended the quarter with $23.5 million in cash, $95 million in debt, and $57 million available on its credit facility.
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