Exco Technologies Q2 Earnings Call Highlights

Key Points

• Q2 headline: Consolidated income fell to CAD 157.6M and nett income to CAD 5.8M, with CAD 6.9M of the income diminution from foreign‑exchange headwinds and CAD 2.4M of after‑tax restructuring charges; absorption says improving bid enactment supports a stronger 2nd half.

• Automotive Solutions: Excluding FX the conception grew astir 5% connected caller programme wins and mix, but margins were squeezed by merchandise mix, higher labour and worldly costs, truthful absorption is pursuing pricing, thin manufacturing and automation to reconstruct profitability.

• Casting & Extrusion and diversification: Large‑mold income were anemic arsenic OEM programme delays worked through, but backlog was "rebuilt meaningfully" and absorption expects meaningful H2 gross betterment portion pushing maturation successful additive manufacturing, atomic constituent machining and AI‑infrastructure extrusions.

• Interested successful Exco Technologies Limited? Here are 5 stocks we similar better.

Exco Technologies (TSE:XTC) reported fiscal 2026 second-quarter results that absorption said were shaped by “temporary softness successful ample mold volumes, restructuring actions, and overseas speech headwinds,” portion pointing to improving bid enactment and a stronger second-half outlook.

Quarterly results affected by FX and restructuring

CFO and VP of Finance Matthew Posno said consolidated income for the 4th ended March 31, 2026, were CAD 157.6 million, down from CAD 166.1 cardinal a twelvemonth earlier. He attributed CAD 6.9 cardinal of the diminution to overseas exchange, adding that excluding FX, income were down astir 1%.

→ Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall?

Net income was CAD 5.8 million, oregon CAD 0.15 per share, compared with CAD 6.4 million, oregon CAD 0.17 per share, successful the prior-year period. Posno said results included CAD 2.4 cardinal (CAD 0.06 per share) of after-tax restructuring charges. EBITDA was CAD 18.0 million, oregon 11.4% of sales, versus CAD 19.7 million, oregon 11.8%, past year.

Posno besides noted the effectual taxation complaint decreased to 26.4% from 33.7% a twelvemonth earlier, reflecting geographic net premix and overseas taxation complaint differentials.

Automotive Solutions: constant-currency growth, borderline unit

→ 5 Stocks to Buy successful May Before the Next AI Surge Hits

President and CEO Darren Kirk said Exco’s Automotive Solutions conception delivered “another coagulated quarter” contempt a modestly softer year-over-year accumulation backdrop, with North American airy conveyance accumulation down astir 2% and Europe down 1%. He pointed to U.S. SAAR of 16.3 cardinal units successful March, below-prepandemic trader inventories, an aging fleet, and accrued OEM incentives arsenic supportive factors.