Automotive protective film provider Xpel beats Q3 revenue estimates

Overview

• Xpel Q3 revenue grows 11.1% to $125.4 mln, beating analyst expectations

• EBITDA for Q3 decreases 8.1% to $19.9 mln

• Company plans $75-150 mln investment in manufacturing and supply chain

Outlook

• XPEL expects Q4 2025 revenue between $123 mln and $125 mln

• XPEL plans $75 mln to $150 mln investment in manufacturing and supply chain

• XPEL aims for gross margin of 52%-54% by 2028

Result Drivers

• REVENUE GROWTH - Revenue increased 11.1% to $125.4 mln, driven by growth in product and service revenue

• MARGIN PRESSURE - Gross margin faced pressure due to unfavorable non-tariff related price increases

• STRATEGIC INVESTMENTS - Co plans $75-150 mln investment in manufacturing and supply chain to improve margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Xpel Inc is $45.00, about 22.3% above its November 4 closing price of $34.98

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw65Hz4va

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