Exco Technologies Limited — Interim / Quarterly Report 2026

Jan 28, 2026

EXCO®

EXCO TECHNOLOGIES LIMITED

130 Spy Court, 2nd Floor,

Markham, ON, Canada L3R 5H6

T. 905.477.3065 F. 905.477.2449

www.excocorp.com

Unaudited Condensed Interim Report

to the shareholders

for the three months ended

December 31, 2025

CASTING AND EXTRUSION

AUTOMOTIVE SOLUTIONS

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NOTICE TO READER

The attached unaudited condensed interim consolidated financial statements have been prepared by management of the Company. The condensed interim consolidated financial statements for the three month period ended December 31, 2025 and 2024 have not been reviewed by the auditors of the Company.

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EXCO TECHNOLOGIES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
$ (000)'s

| | As at
December 31, 2025 | As at
September 30, 2025 |
| --- | --- | --- |
| ASSETS | | |
| Current | | |
| Cash and cash equivalents | $24,629 | $22,871 |
| Accounts receivable | 103,579 | 114,918 |
| Inventories | 104,642 | 103,062 |
| Prepaid expenses and deposits | 4,201 | 5,188 |
| Derivative instruments | 997 | 617 |
| Income taxes recoverable | 2,316 | 2,057 |
| Total current assets | 240,364 | 248,713 |
| Property, plant and equipment, net (note 4) | 231,607 | 237,132 |
| Intangible assets, net (note 5) | 23,968 | 25,325 |
| Goodwill (note 5) | 98,138 | 99,626 |
| Deferred tax assets | 3,435 | 3,445 |
| Total assets | $597,512 | $614,241 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| Current | | |
| Bank indebtedness | $1,778 | $- |
| Trade accounts payable | 39,174 | 46,906 |
| Accrued payroll liabilities | 13,423 | 18,775 |
| Other accrued liabilities | 12,592 | 13,459 |
| Provisions | 10,364 | 10,705 |
| Customer advance payments | 2,835 | 2,314 |
| Total current liabilities | 80,166 | 92,159 |
| Lease liabilities- long-term portion | 6,992 | 7,127 |
| Long-term debt (note 7) | 90,000 | 90,000 |
| Deferred tax liabilities | 17,732 | 17,705 |
| Total liabilities | 194,890 | 206,991 |
| Shareholders' equity | | |
| Share capital (note 8) | 47,529 | 47,664 |
| Contributed surplus | 6,133 | 6,112 |
| Accumulated other comprehensive income | 32,635 | 37,402 |
| Retained earnings | 316,325 | 316,072 |
| Total shareholders' equity | 402,622 | 407,250 |
| Total liabilities and shareholders' equity | $597,512 | $614,241 |

The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements.

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EXCO TECHNOLOGIES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

$ (000)'s except for income per common share

	Three months ended December 31
	2025	2024
Sales	$149,522	$143,568
Cost of sales	118,246	116,199
Selling, general and administrative expenses	13,951	10,688
Depreciation (note 4)	8,153	7,562
Amortization (note 5)	1,093	1,077
Gain on disposal of property, plant and equipment	(25)	(30)
Interest expense, net	1,014	1,455
	142,432	136,951
Income before income taxes	7,090	6,617
Provision for income taxes (note 11)	2,258	2,372
Net income for the period	4,832	4,245
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Net unrealized gain (loss) on derivatives designated as cash flow hedges (a)	280	(1,807)
Unrealized gain (loss) on foreign currency translation	(5,047)	10,296
	(4,767)	8,489
Comprehensive income	$65	$12,734
Income per common share
Basic	$0.13	$0.11
Diluted	$0.13	$0.11
Weighted average number of common shares outstanding (,000)'s
Basic	37,937	38,534
Diluted	37,937	38,534

(a) Net of income tax receivable of $100 for the three-month period ended December 31, 2025 (2024 - net of income tax receivable of $645 for the three-period ended December 31, 2024)

The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements.

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EXCO TECHNOLOGIES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
$ (000)'s

	Share capital	Contributed surplus	Retained earnings	Net unrealized gain on derivatives designated as cash flow hedges	Unrealized gain (loss) on foreign currency translation	Total accumulated other comprehensive income (loss)	Total shareholders' equity
Balance, October 1, 2025	$47,664	$6,112	$316,072	$453	$36,949	$37,402	$407,250
Net income for the period	-	-	4,832	-	-	-	4,832
Dividend paid (note 3)	-	-	(3,982)	-	-	-	(3,982)
Stock option expense	-	21	-	-	-	-	21
Repurchase of share capital (note 8)	(135)	-	(597)	-	-	-	(732)
Other comprehensive income (loss)	-	-	-	280	(5,047)	(4,767)	(4,767)
Balance, December 31, 2025	$47,529	$6,133	$316,325	$733	$31,902	$32,635	$402,622
	Share capital	Contributed surplus	Retained earnings	Net unrealized gain (loss) on derivatives designated as cash flow hedges	Unrealized gain (loss) on foreign currency translation	Total accumulated other comprehensive income (loss)	Total shareholders' equity
---	---	---	---	---	---	---	---
Balance, October 1, 2024	$48,315	$6,010	$310,699	($634)	$16,882	$16,248	$381,272
Net income for the period	-	-	4,245	-	-	-	4,245
Dividend paid (note 3)	-	-	(4,046)	-	-	-	(4,046)
Stock option expense	-	43	-	-	-	-	43
Repurchase of share capital (note 8)	(25)	-	(132)	-	-	-	(157)
Other comprehensive (loss)	-	-	-	(1,807)	10,296	8,489	8,489
Balance, December 31, 2024	$48,290	$6,053	$310,766	($2,441)	$27,178	$24,737	$389,846
Net income for the period	-	-	6,421	-	-	-	6,421
Dividend paid (note 3)			(4,031)			-	(4,031)
Stock option expense		24				-	24
Repurchase of share capital (note 8)	(171)		(745)				(916)
Other comprehensive (loss)				859	6,239	7,098	7,098
Balance, March 31, 2025	$48,119	$6,077	$312,411	($1,582)	$33,417	$31,835	$398,442
Net income for the period	-	-	5,399	-	-	-	5,399
Dividends paid (note 3)	-	-	(4,014)	-	-	-	(4,014)
Stock option expense	-	11	-	-	-	-	11
Repurchase of share capital (note 8)	(208)		(861)	-	-	-	(1,069)
Other comprehensive income (loss)	-	-	-	1,884	(4,387)	(2,503)	(2,503)
Balance, June 30, 2025	$47,911	$6,088	$312,935	$302	$29,030	$29,332	$396,266
Net income for the period			8,227	-	-	-	8,227
Dividends (note 3)			(3,998)	-	-	-	(3,998)
Stock option expense		24	-	-	-	-	24
Repurchase of share capital (note 8)	(247)		(1,092)	-	-	-	(1,339)
Other comprehensive income (loss)	-	-	-	151	7,919	8,070	8,070
Balance, September 30, 2025	$47,664	$6,112	$316,072	$453	$36,949	$37,402	$407,250

The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements.

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EXCO TECHNOLOGIES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
$ (000)'s

Three months ended
December 31

	2025	2024
OPERATING ACTIVITIES:
Net income for the period	$4,832	$4,245
Add non-operating and items not involving a current outlay of cash
Depreciation	8,153	7,562
Amortization	1,093	1,077
Stock-based compensation	196	124
Deferred income taxes	(162)	(14)
Net interest expense	1,014	1,455
Gain on disposal of property, plant and equipment	(25)	(30)
	15,101	14,419
Net change in non-cash working capital (note 10)	(4,935)	(4,026)
Cash provided by operating activities	10,166	10,393
FINANCING ACTIVITIES:
Increase in bank indebtedness	1,778	673
Repayment of long-term debt	-	(10,000)
Interest paid, net	(1,014)	(1,455)
Dividends paid	(3,982)	(4,046)
Repurchase of share capital	(732)	(157)
Cash used in financing activities	(3,950)	(14,985)
INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(4,420)	(7,710)
Purchase of intangible assets	(89)	(78)
Proceeds from disposal of property, plant and equipment	40	121
Cash used in investing activities	(4,469)	(7,667)
Effect of exchange rate changes on cash and cash equivalents	11	(182)
Net increase (decrease) in cash during the period	1,758	(12,441)
Cash, beginning of period	22,871	31,637
Cash, end of period	$24,629	$19,196

The accompanying notes are an integral part of these condensed unaudited interim consolidated financial statements.

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$(000)'s except per share amounts

1. CORPORATE INFORMATION

Exco Technologies Limited (the "Company") is a global designer, developer and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. Through 21 strategic locations in 9 countries, the Company services a diverse and broad customer base. The Company is incorporated and domiciled in Canada. The registered office is located at 130 Spy Court, Markham, Ontario, Canada.

1. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Basis of preparation

These unaudited condensed interim consolidated financial statements present the Company's financial results of operations and financial position as at and for the three - month period ended December 31, 2025 and have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"). The accounting policies used in preparing these unaudited condensed interim financial statements are consistent with those used in the preparation of the 2025 audited annual consolidated financial statements.

The Company's preparation of unaudited condensed interim financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the application of the Company's accounting policies. The Company's critical accounting estimates are affected as a result of the global tariff uncertainty, various ongoing economic, geopolitical and social impacts, and recessionary conditions. There continues to be significant uncertainty as to the likely effects these items which may, among other things, impact our employees, suppliers, and customers and the carrying values of our assets and liabilities. It is not possible to predict the impact these items will have on the Company, its financial position and the results of operations in the future. The Company is monitoring the future impact of all these items on all aspects of its business. Each reporting period, management carries out this assessment for indications that goodwill and other long-lived assets may be impaired. As required, management will continue to assess these assumptions as the situation changes.

These unaudited condensed interim consolidated financial statements should be read in conjunction with the Company's 2025 audited annual consolidated financial statements, which are available at www.sedarplus.ca and on the Corporation's website at www.excocorp.com. The unaudited condensed interim consolidated financial statements and accompanying notes for the three - month period ended December 31, 2025 were authorized for issue by the Board of Directors on January 28, 2026.

1. CASH DIVIDEND

During the three-month period ended December 31, 2025, the Company paid quarterly cash dividends totaling $3,982 (2024 - $4,245). The quarterly dividend rate in the first quarter of 2026 was $0.105 per common share (2025 - $0.105).

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$ (000)'s except per share amounts

1. PROPERTY, PLANT AND EQUIPMENT

	Machinery and Equipment	Tools	Buildings	Land	Assets under Construction	Right of Use Assets	TOTAL
Cost
Balance as at September 30, 2025	339,632	31,384	124,431	15,423	14,671	11,032	536,573
Additions	474	549	571	-	2,548	278	4,420
Less: disposals	(941)	(99)	-	-	-	(53)	(1,093)
Reclassification	8,448	463	16	-	(8,927)	-	-
Foreign exchange movement	(2,255)	(226)	(945)	(133)	(139)	(156)	(3,854)
Balance as at December 31, 2025	345,358	32,071	124,073	15,290	8,153	11,101	536,046
	Machinery and Equipment	Tools	Buildings	Land	Assets under Construction	Right of Use Assets	TOTAL
---	---	---	---	---	---	---	---
Accumulated depreciation and impairment losses
Balance as at September 30, 2025	212,457	23,235	60,548	-	-	3,201	299,441
Depreciation	5,974	723	1,217	-	-	239	8,153
Less: disposals	(926)	(99)	-	-	-	(53)	(1,078)
Foreign exchange movement	(1,432)	(179)	(420)	-	-	(46)	(2,077)
Balance as at December 31, 2025	216,073	23,680	61,345	-	-	3,341	304,439
Carrying amounts	Machinery and Equipment	Tools	Buildings	Land	Assets under Construction	Right of Use Assets	TOTAL
---	---	---	---	---	---	---	---
As at September 30, 2025	127,175	8,149	63,883	15,423	14,671	7,831	237,132
As at December 31, 2025	129,285	8,391	62,728	15,290	8,153	7,760	231,607

1. INTANGIBLE ASSETS AND GOODWILL

	Computer Software and Other	Acquisition Intangibles*	Assets under Construction (Software)	Total Intangible Assets	Goodwill
Cost
Balance as at September 30, 2025	$9,944	$60,902	$147	$70,993	$99,626
Additions	89	-	-	89	-
Less: disposals	-	-	-	-	-
Reclassification	111	-	(111)	-	-
Foreign exchange movement	(52)	(863)	(1)	(916)	(1,488)
Balance as at December 31, 2025	$10,092	$60,039	$35	$70,166	$98,138

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$ (000)'s except per share amounts

	Computer Software and Other	Acquisition Intangibles*	Assets under Construction (Software)	Total Intangible Assets	Goodwill
Accumulated amortization and impairment losses
Balance as at September 30, 2025	$8,614	$37,054	$-	$45,668	$-
Amortization for the period	210	883	-	1,093	-
Less: disposals	-	-	-	-	-
Foreign exchange movement	(47)	(516)	-	(563)	-
Balance as at December 31, 2025	$8,777	$37,421	$-	$46,198	$-
Carrying amounts
As at September 30, 2025	$1,330	$23,848	$147	$25,325	$99,626
As at December 31, 2025	$1,315	$22,618	$35	$23,968	$98,138

• Acquisition intangibles are composed of customer relationships and trade names resulting from business acquisitions and the purchase price allocation thereof.

6. FINANCIAL INSTRUMENTS

Fair value represents point-in-time estimates that may change in subsequent reporting periods due to market conditions or other factors. Presented below is a comparison of the fair value of each financial instrument to its carrying value.

The fair value of cash and cash equivalents, bank indebtedness, trade and other receivables and trade and other payables approximates their carrying amounts due to the short-term maturities of these instruments. The estimated fair value of long-term debt approximates its carrying value since debt is subject to terms and conditions similar to those available to the Company for instruments with comparable terms, and the interest rates are variable and a reflection of market-based rates.

The fair value of derivative instruments that are not traded in an active market such as over-the-counter foreign exchange options and collars is determined using quoted forward exchange rates at the consolidated statement of financial position dates and are Level 2 instruments.

During the three-month period ended December 31, 2025 there were no transfers between Level 1 and Level 2 fair value measurements.

The carrying value and fair value of all financial instruments are as follows:

	December 31, 2025		September 30, 2025
	Carrying Amount of Asset (Liability)	Fair Value of Asset (Liability)	Carrying Amount of Asset (Liability)	Fair Value of Asset (Liability)
Cash and cash equivalents	$24,629	$24,629	$22,871	$22,871
Accounts receivable	103,579	103,579	114,918	114,918
Bank indebtedness	(1,778)	(1,778)
Trade accounts payable	(39,174)	(39,174)	(46,906)	(46,906)
Customer advance payments	(2,835)	(2,835)	(2,314)	(2,314)
Accrued liabilities	(26,015)	(26,015)	(32,234)	(32,234)
Derivative instruments	997	997	617	617
Long-term debt	($90,000)	($90,000)	($90,000)	($90,000)

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$(000)'s except per share amounts

1. LONG-TERM DEBT

On March 25, 2024, the Company renewed the Committed Revolving Credit Facility (“the Credit Facility”) of $150,000 to extend the maturity date to March 25, 2027. As at December 31, 2025, $91,778 was utilized (September 30, 2025 - $90,000). The facility is collateralized by a general security agreement covering all assets of the Company’s subsidiaries located in Canada and the US, with the exception of real property.

The Credit Facility is available to fund working capital, capital expenditures and other general corporate purposes of the Company and its subsidiaries, including acquisitions. Interest rates vary based on prime, bankers’ acceptance or CORRA base rates plus a relevant margin depending on the level of the Company’s net leverage ratio and as at December 31, 2025 average interest rate was 4.2% (Q1-2025 - 5.2%).

Pursuant to the terms of the Credit Facility, Exco is required to maintain compliance with certain financial covenants. The Company was in compliance with these covenants as at December 31, 2025.

1. SHARE CAPITAL

In each of February 2025 and 2024 the Company received approval from the Toronto Stock Exchange for a normal course issuer bid for the following 12-month period. The Company’s Board of Directors authorized the purchase of up to 1,770,513 and 1,780,000 common shares under each of these normal course issuer bids, respectively, which represented approximately 5% of the Company’s outstanding common shares at each approval date. During the first quarter 107,880 common shares were repurchased (2025- 19,850).

As at December 31, 2025 the Company had 37,924,832 common shares issued and outstanding.

1. SEGMENTED INFORMATION

Business segments

The Company operates in two reportable business segments: Casting and Extrusion Technology (“Casting and Extrusion”) and Automotive Solutions.

The Casting and Extrusion segment is comprised of Extrusion Technologies, Casting Technologies, and Castool (extrusion and casting technology), which serve to design, develop and manufacture tooling and consumable parts for both die-casting and aluminum extrusion machines for industrial applications and serve automotive markets globally. The aggregation of the above operating segments reflects, in the view of management, the similarity in economic characteristics as well the similar products sold and a comparable class of customers.

The Automotive Solutions segment produces automotive interior components and assembles primarily for seating, cargo storage and restraint for sale to automotive manufacturers and Tier 1 suppliers (suppliers to automakers).

The Company evaluates the performance of its operating segments primarily based on net income before interest, other income (expense) and income tax expense.

The Company evaluates the performance of its operating segments primarily based on pre-tax income before interest.

The Corporate segment involves administrative expenses that are not directly related to the business activities of the above two operating segments.

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$ (000)'s except per share amounts

Three Months Ended December 31, 2025
	Casting and Extrusion	Automotive Solutions	Corporate	Total
Sales	$75,669	$79,592	$-	$155,261
Intercompany sales	(5,479)	(260)	-	(5,739)
Net sales	70,190	79,332	-	149,522
Depreciation	6,881	1,248	24	8,153
Amortization	375	718	-	1,093
Segment pre-tax income (loss) before interest	3,506	6,517	(1,919)	8,104
Net interest expense				(1,014)
Income before income taxes				7,090
Property, plant and equipment additions	2,954	1,450	16	4,420
Property, plant and equipment, net	187,653	42,736	1,218	231,607
Intangible asset additions	50	39	-	89
Intangible assets, net	9,602	14,366	-	23,968
Goodwill	31,318	66,820	-	98,138
Total assets	396,313	233,814	(32,615)	597,512
Total liabilities	4869	50,085	96,106	194,890
Three Months Ended December 31, 2024
---	---	---	---	---
	Casting and Extrusion	Automotive Solutions	Corporate	Total
Sales	$77,459	$72,766	$-	$150,225
Intercompany sales	(6,016)	(641)	-	(6,657)
Net sales	71,443	72,125	-	143,568
Depreciation	6,358	1,204	-	7,562
Amortization	357	720	-	1,077
Segment pre-tax income (loss) before interest	3,740	4,762	(430)	8,072
Net interest expense				(1,455)
Income before income taxes				6,617
Property, plant and equipment additions	6,305	1,273	132	7,710
Property, plant and equipment, net	190,177	38,053	1,299	229,529
Intangible asset additions	73	5	-	78
Intangible assets, net	10,009	17,861	-	27,870
Goodwill	29,058	67,114	-	96,172
Total assets	400,162	227,061	(32,219)	595,004
Total liabilities	54,009	47,144	104,005	205,158

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EXCO TECHNOLOGIES LIMITED
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
$ (000)'s except per share amounts

1. NET CHANGE IN NON-CASH WORKING CAPITAL

	Three Months Ended December 31
	2025	2024
Accounts receivable	$10,276	$8,553
Inventories	(2,716)	2,547
Prepaid expenses and deposits	939	675
Trade accounts payable	(7,176)	(7,655)
Accrued payroll and taxes	(5,145)	(5,784)
Other accrued liabilities	(1,027)	(1,710)
Provisions	(341)	87
Customer advance payments	551	267
Income taxes payable	(296)	(1,006)
	($4,935)	($4,026)

1. INCOME TAXES

The consolidated effective income tax rates for the three-month period ended December 31, 2025 was 31.8% (three-month period ended December 31, 2025 – 35.8%). The change in income tax rate in the quarter was impacted by geographic distribution, foreign tax rate differentials and losses that cannot be tax affected for accounting purposes.

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CORPORATE INFORMATION

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 21 strategic locations in 9 countries, we employ approximately 4,500 people and service a diverse and broad customer base.

Telephone: 905-477-3065
Fax: 905-477-2449
Web: www.excocorp.com

TORONTO STOCK EXCHANGE LISTING

TSX: XTC

DIRECTORS

Edward H. Kernaghan
Darren M. Kirk, President and CEO
Robert B. Magee, Lead Director
Colleen M. McMorrow
Brian A. Robbins, Executive Chairman
Tommy J. Skudutis

CORPORATE OFFICERS

Brian A. Robbins, PEng
Executive Chairman

Darren M. Kirk, CFA, MBA
President and CEO

Matthew Posno, CPA, CA, MBA
Vice President Finance, CFO and Secretary

TRANSFER AGENT

TSX Trust Company
301-100 Adelaide Street West
Toronto, Ontario
M5H 4H1

Shareholder Inquiries:
Telephone: 1-866-600-5869
Email: tmxeinvestorservices@tmx.com
Web: www.tsxtrust.com