Markham, Ontario – Exco Technologies Limited discussed their second-quarter 2024 earnings during a conference call on May 2, 2024. The call featured President and CEO, Darren Kirk, as well as CFO, Matthew Posno.

Kirk opened the call by providing an overview of the company’s operations, highlighting the growth in revenues, EBITDA, and EPS for the seventh consecutive quarter. He noted the increase in margins in the Casting and Extrusion segment and highlighted the company’s focus on new capacities and efficiency improvements.

Posno then delved into the financial aspects of the quarter, reporting a 5% increase in consolidated sales and a 29% increase in net income compared to the same quarter last year. He discussed the performance of the Automotive Solutions and Casting and Extrusion segments, noting the challenges posed by rising labor costs and foreign exchange headwinds.

The discussion touched on the stability of vehicle production volumes, the impact of interest rates and average transaction prices on the automotive industry, and the company’s strategies to offset cost pressures through automation and efficiency improvements.

In the Casting and Extrusion segment, demand remained strong for extrusion tooling, particularly in automotive and green energy applications. The company highlighted its investments in new technologies and its focus on improving productivity and margins in the segment.

During the Q&A session, analysts inquired about the company’s ability to offset rising minimum wages in Mexico, its automation strategies, competition in the large mould market, and its capital allocation priorities. Management emphasized their focus on reducing debt, improving operational efficiency, and pursuing high-value growth opportunities.

In closing, Kirk expressed appreciation for the team’s efforts and commitment to safety. The call concluded with an outlook for future results and a reminder of the company’s upcoming Q3 results release in approximately 90 days.

Overall, Exco Technologies Limited showcased its resilience in the face of industry challenges, highlighting its strategies for growth, efficiency, and financial stability in the coming quarters.