Overview

* Exco ( EXCOF ) 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 ( EXCOF ) 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 ( EXCOF ) 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/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss C$154.90 C$155.70

mln mln (2

Analysts

)

Q3 EPS C$0.14

Q3 Net C$5.40

Income mln

Q3 Cash C$25.20

Flow mln

from

Operatin

g

Activiti

es

Q3 C$0.105

Dividend

Q3 C$14.70

EBITDA 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 ( EXCOF ) 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:

(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.)