Exco Results for Third Quarter Ended June 30, 2026

Consolidated Sales of $165.4 million, an increase of 7% over the prior-year quarter; EBITDA increased 26% to $18.5 million, compared with $14.7 million; Launched Exco Energy : Leveraging Exco’s precision-machining and additive-manufacturing capabilities to pursue opportunities in nuclear and other advanced markets. Exco hosted the Government of Canada’s Nuclear Energy Strategy announcement on June 22, 2026. Net Income of $5.8 million and Earnings per Share of $0.15, including $0.02 per share in restructuring charges; Quarterly dividend of $0.105 per common share to be paid September 29, 2026.

TORONTO, July 29, 2026 (GLOBE NEWSWIRE) -- Exco Technologies Limited (TSX-XTC) today announced results for its third quarter of fiscal 2026 ended June 30, 2026. In addition, Exco announced a quarterly dividend of $0.105 per common share which will be paid on September 29, 2026 to shareholders of record on September 15, 2026. The dividend is an “eligible dividend” in accordance with the Income Tax Act of Canada.

“Exco delivered solid progress in the third quarter, with consolidated sales increasing 7% and EBITDA increasing 26%, reflecting stronger performance in Casting and Extrusion and continued growth in Automotive Solutions,” said Darren Kirk, Exco’s President and CEO. “We are encouraged by our die-cast backlog above historical levels, favourable North American extrusion market dynamics and increased quoting activity across the business. Our priority is to translate the significant capital investments made in recent years, particularly within Casting and Extrusion, into higher utilization, improved margins, stronger cash generation and better returns on capital.

The launch of Exco Energy represents an important step in diversifying our business by leveraging our precision-machining, engineering, quality and additive manufacturing capabilities to serve the Canadian nuclear industry and pursue opportunities in other technically demanding end markets. I thank our employees for their dedication and continued focus on safety, quality and customer service.” Consolidated sales for the third quarter ended June 30, 2026 were $165.4 million, compared to $154.9 million in the same quarter last year, an increase of $10.6 million, or 7%. Foreign exchange rate changes increased sales by $1.9 million in the quarter.

Excluding foreign exchange, consolidated sales increased approximately 6%. The Automotive Solutions segment reported third-quarter sales of $88.3 million, an increase of $7.5 million, or 9%, compared with the prior-year period. Foreign exchange increased sales by $1.1 million; excluding this impact, segment sales increased approximately 8%.

Performance benefited from resilient North American automotive demand, recent and ongoing program launches, a favourable vehicle mix and continued growth in accessory products with both new and existing customers. U.S. SAAR averaged approximately 16.2 million units during the quarter, including 16.5 million units in June. European conditions remained challenging due to OEM restructuring and competitive pressures, although supplier consolidation and Exco’s capabilities in Morocco are creating additional opportunities.

Quoting activity also increased during the quarter. Near-term conditions remain tempered by trade tensions, affordability, financing costs and expected fourth-quarter customer shutdowns; however, recent and upcoming program launches and continued supplier consolidation are expected to support growth in Exco’s content per vehicle over time. The Casting and Extrusion segment reported third-quarter sales of $77.1 million, an increase of $3.1 million, or approximately 4%, compared with the prior-year period.

Foreign exchange increased segment sales by $0.8 million. Extrusion tooling sales remained solid, supported by diversified demand across construction, transportation, renewable energy, electrical applications and AI infrastructure-related projects. North American conditions remained favourable, while European demand was more mixed.

Die-cast tooling revenues were relatively stable as shipments increased against the segment’s elevated backlog, although customer timing delays and the closure of the Large Mould Mexico facility had an offsetting effect. Management expects die-cast tooling revenues to improve as delayed shipments are released and new programs advance. Demand for 3D-printed tooling remained strong, including for increasingly large and complex giga-press applications.

During the quarter, Exco launched Exco Energy to leverage the Large Mould Group’s precision-machining, engineering and quality capabilities in the Canadian nuclear energy market, while also seeking to apply its additive manufacturing expertise across a broader range of end markets. Management remains focused on increasing asset utilization, improving newer operations and capturing market-share opportunities arising from domestic and nearshore sourcing trends. Consolidated net income for the third quarter was $5.8 million, or $0.15 per share, compared to $5.4 million, or $0.14 per share, in the same quarter last year, an increase of $0.4 million, or 7%.

Net income included $0.6 million ($0.02 EPS) of after-tax restructuring charges in the quarter. The consolidated effective income tax rate was 30% in the current quarter compared to a 13% recovery in the prior-year quarter, which benefited from $1.6 million of Research and Development tax credits. The Automotive Solutions segment reported third-quarter Pretax Profit of $6.5 million, a decrease of $0.8 million from the prior-year period.

Profitability was affected primarily by product mix, higher labour costs and increased energy and supply-chain cost pressures. The Company continues to advance lean manufacturing and automation initiatives to improve efficiency and establish a stronger base for margin expansion as volumes increase and new programs ramp up. Pricing discipline remains a priority, particularly on new program awards.

Fourth-quarter results are expected to reflect normal seasonality associated with OEM summer shutdowns. The Casting and Extrusion segment reported third-quarter Pretax Profit of $5.1 million, an increase of $2.5 million, or 97%, compared with the prior-year period. Current-quarter results included $0.9 million of incremental restructuring charges.

The improvement reflected higher extrusion tooling sales and foreign exchange gains on balance sheet revaluations, partially offset by lower die-cast results, product mix, higher overhead costs, fixed-cost under-absorption and increased depreciation. Management expects large die-cast mould volumes to improve as the elevated backlog converts to shipments and new programs ramp up. Performance at Castool’s greenfield facilities and Extrusion Germany remains an area of focus, with recent management actions showing signs of progress.

The segment continues to pursue pricing and operational efficiency initiatives, including lean manufacturing, automation, process standardization and the centralization of support functions, to improve profitability and returns on capital. Corporate segment expenses were $2.4 million in the third quarter compared to $4.0 million in the prior-year quarter. The decrease primarily reflects foreign exchange gains in the current quarter compared with the prior-year period.

Consolidated EBITDA for the third quarter totaled $18.5 million compared to $14.7 million in the same quarter last year, an increase of $3.8 million, or 26%. EBITDA margin increased to 11.2% from 9.5%, driven by an improvement in the Casting and Extrusion segment EBITDA margin to 16.2% from 12.7%, partially offset by a decrease in the Automotive Solutions segment EBITDA margin to 9.6% from 11.4%. Exco generated cash from operating activities of $13.4 million and Free Cash Flow of $9.7 million in the quarter compared to $25.2 million and $20.1 million, respectively, in the prior-year quarter.

The decrease primarily reflects a greater use of cash for non-cash working capital. Maintenance Fixed Asset Additions were $2.7 million and interest was $1.0 million in the third quarter. During the quarter, the Company paid $3.9 million in dividends, used $0.9 million for share buybacks and reduced bank indebtedness.

Exco ended the quarter with $26.1 million in cash, net debt of $63.9 million and $61.6 million available under its committed credit facility. Management now expects fiscal 2026 capital expenditures of approximately $20.0 million, compared with $36.0 million in fiscal 2025, with spending focused primarily on maintenance, productivity improvements and select growth initiatives. Outlook Exco continues to operate in an environment characterized by uncertainty surrounding global trade policy, tariffs, geopolitical developments and broader macroeconomic conditions.

These factors may create volatility in customer demand, input costs and pricing and may limit visibility into near-term performance. Management remains focused on long-term growth, margin expansion and improved returns on capital through the maturation of greenfield investments, new program launches, organic market growth, operational efficiency initiatives and continued market-share gains. Improving returns on capital is a Company-wide priority, particularly within the Casting and Extrusion segment, where recent investments are expected to support higher utilization, earnings and cash generation as demand develops.

Management expects products that comply with the United States-Mexico-Canada Agreement (USMCA) rules of origin to remain favourably positioned under current and evolving trade frameworks. As nearly all of Exco’s products sold within North America comply with USMCA requirements, the Company believes it is well positioned to navigate ongoing trade policy developments. Exco also maintains a substantial U.S. manufacturing footprint for extrusion dies and large mould products, providing additional flexibility should tariff policies evolve.

If elevated tariffs on imports from non-compliant jurisdictions, particularly China, persist, Exco may benefit from improved competitive positioning relative to certain global peers. Exco is encouraged by increasing initiatives to reshore industrial manufacturing in North America, which are expected to support demand for extrusion and high-pressure die-cast tooling. Within the Casting and Extrusion segment, the above-historical die-cast backlog, resilient extrusion tooling demand, customer investment in additional press capacity and ongoing reshoring activity provide a favourable foundation for growth.

As backlog converts to shipments, utilization increases across newer facilities and operating initiatives advance, management expects improved profitability and stronger returns on capital. Together with structural automotive trends, continued program launches and the Company’s expanded product and manufacturing capabilities, these factors support confidence in Exco’s long-term outlook despite near-term uncertainty. Non-IFRS Measures: In this News Release, reference may be made to EBITDA, EBITDA Margin, Pretax Profit, Net Debt, Free Cash Flow and Maintenance Fixed Asset Additions which are not defined measures of financial performance under International Financial Reporting Standards (“IFRS”).

A reconciliation to these non-GAAP measures is provided within this MD&A. Exco calculates EBITDA as earnings before interest, taxes, depreciation and amortization and EBITDA Margin as EBITDA divided by sales. Exco calculates Pretax Profit as segmented earnings before other income/expense, interest and taxes.

Net Debt represents the Company’s consolidated net indebtedness position offsetting cash from bank indebtedness, current and long-term debt. It is calculated as Long-term debt plus Current portion of Long-term debt plus Bank indebtedness less Cash and cash equivalents. Free Cash Flow is calculated as cash provided by operating activities less interest paid and Maintenance Fixed Asset Additions.

Maintenance Fixed Asset Additions represent management’s estimate of the investment in fixed assets that is required for the Company to continue operating at current capacity levels. Given the Company’s elevated planned capital spending on fixed assets for growth initiatives (including additional Greenfield locations, energy efficient heat treatment equipment and increased capacity) in recent years, the Company has modified its calculation of Free Cash Flow to include Maintenance Fixed Asset Additions and not total fixed asset purchases. This change is meant to enable investors to better gauge the amount of generated cash flow that is available for these investments as well as acquisitions and/or returns to shareholders in the form of dividends or share buyback programs.

EBITDA, EBITDA Margin, Pretax Profit and Free Cash Flow are used by management, from time to time, to facilitate period-to-period operating comparisons and we believe some investors and analysts use these measures as well when evaluating Exco’s financial performance. These measures, as calculated by Exco, do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers. Quarterly Conference Call – July 30, 2026 at 10:00 a.m. (Toronto time): To access the listen only live audio webcast, please log on to www.excocorp.com , or https://edge.media-server.com/mmc/p/bfdrj9r8 a few minutes before the event.

Those interested in participating in the question-and-answer conference call may register at https://register-conf.media-server.com/register/BIb6056eb6cbc44feaa4b8d7c9080e8df1 to receive the dial-in numbers and unique PIN to access the call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). For those unable to participate on July 30, 2026, an archived version will be available on the Exco website until August 14, 2026.

Source: Exco Technologies Limited (TSX-XTC) Contact : Matthew Posno, CFO Telephone: (905) 477-3065 Ext. 7265 Website: https://www.excocorp.com About Exco Technologies Limited: Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 20 strategic locations in 9 countries, we employ approximately 4,400 people and service a diverse and broad customer base. Notice To Reader: Forward Looking Statements This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws.

We may use words such as "anticipate", "may", "will", "should", "expect", "believe", "estimate", “5-year target” and similar expressions to identify forward-looking information and statements especially with respect to growth, outlook and financial performance of the Company's business units, contribution of our start-up business units, contribution of awarded programs yet to be launched, margin performance, financial performance of acquisitions, liquidity, operating efficiencies, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, production sales, margin, earnings, earnings per share, including the revised outlook for fiscal 2026, are forward-looking statements. These forward-looking statements include known and unknown risks, uncertainties, assumptions and other factors which may cause actual results or achievements to be materially different from those expressed or implied. These forward-looking statements are based on our plans, intentions or expectations which are based on, among other things, the global economic recovery from any future outbreak of epidemic, pandemic, or contagious diseases that may emerge in the human population, which may have a material effect on how we and our customers operate our businesses and the duration and extent to which this will impact our future operating results, the impact of international conflicts on the global financial, energy and automotive markets, including increased supply chain risks, assumptions about the demand for and number of automobiles produced in North America and Europe, production mix between passenger cars and trucks, the number of extrusion dies required in North America and South America, the rate of economic growth in North America, Europe and emerging market countries, investment by OEMs in drivetrain architecture and other initiatives intended to reduce fuel consumption and/or the weight of automobiles in response to rising climate risks, raw material prices, supply disruptions, economic conditions, inflation, currency fluctuations, trade restrictions, energy rationing in Europe, our ability to integrate acquisitions, our ability to continue increasing market share, or launch of new programs and the rate at which our current and future greenfield operations in Mexico and Morocco achieve sustained profitability, recoverability of capital assets, goodwill and intangibles (based on numerous assumptions inherently uncertain), and cyber security and its impact on Exco’s operations.

Readers are cautioned not to place undue reliance on forward-looking statements throughout this document and are also cautioned that the foregoing list of important factors is not exhaustive. The Company will update its disclosure upon publication of each fiscal quarter's financial results and otherwise disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise. For a more extensive discussion of Exco's risks and uncertainties see the 'Risks and Uncertainties' section in our latest Annual Report, Annual Information Form ("AIF") and other reports and securities filings made by the Company.

This information is available at www.sedarplus.ca or www.excocorp.com . Globe Newswire July 29, 2026 - 2:01 PM PDT News by QuoteMedia www.quotemedia.com