Canada's Exco Technologies Q1 sales rise, driven by Automotive Solutions growth

Overview

• Canada's die-cast supplier's Q1 sales rose 4% yr/yr, slightly missing analyst expectations

• Net income for Q1 increased to C$4.8 mln, with EPS of C$0.13

• Company announced quarterly dividend of C$0.105 per share

Outlook

• Exco withdrew fiscal 2026 revenue, EBITDA, and EPS targets due to tariff uncertainty

• Company expects long-term growth from new programs and USMCA compliance

Result Drivers

• AUTOMOTIVE SOLUTIONS GROWTH - Sales in the Automotive Solutions segment rose 10% due to new program launches and a favorable vehicle mix

• CASTING AND EXTRUSION CHALLENGES - Sales in the Casting and Extrusion segment fell 2% as OEMs deferred new program launches amid softer EV demand

• FOREIGN EXCHANGE IMPACT - Strengthening Euro against CAD increased sales by approximately C$1 mln

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• 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$8.00, about 13.2% above its January 27 closing price of C$7.07

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

Press Release: ID:nGNX61NpzF

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