Canada's Exco Technologies Q3 revenue rises on automotive demand strength in North America

Overview

• Canada die-cast and auto parts supplier's fiscal Q3 revenue rose 7% yr/yr

• Fiscal Q3 net income rose to C$5.8 mln, or C$0.15 per share, including restructuring charges

• Company launched Exco Energy to pursue opportunities in nuclear and advanced markets

Outlook

• Company expects improved profitability as backlog converts to shipments and utilization increases

• Exco sees ongoing uncertainty from global trade policy, tariffs and macroeconomic conditions

• Company expects reshoring trends and USMCA compliance to support demand for tooling products

Result Drivers

• AUTOMOTIVE DEMAND - North American automotive demand, new program launches and favorable vehicle mix boosted Automotive Solutions sales

• EXTRUSION TOOLING DEMAND - Solid extrusion tooling sales supported by diversified demand across construction, transportation, renewable energy, electrical and AI infrastructure projects

• DIE-CAST BACKLOG - Increased die-cast tooling shipments from elevated backlog, though offset by customer timing delays and facility closure

Company press release: ID:nGNX8jwVRz

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$9.50, about 18.6% above its July 28 closing price of C$8.01

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 28 - CTS Corp Q2 revenue rises on transportation sales; lifts 2026 outlook

• July 29 - Brembo raises revenue growth forecast after solid quarter, shares jump

• July 29 - Switzerland's Garrett Motion Q2 sales, EBITDA beat estimates, raises outlook

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(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.)