XPEL (NASDAQ:XPEL) Announces Earnings Results

XPEL (NASDAQ:XPEL) posted its quarterly earnings results on Wednesday. The company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.08, FiscalAI reports. The firm had revenue of $143.05 million during the quarter, compared to analyst estimates of $135.09 million. XPEL had a return on equity of 18.98% and a net margin of 10.77%.The business’s revenue for the quarter was up 14.7% on a year-over-year basis. During the same period last year, the company earned $0.59 earnings per share.

Here are the key takeaways from XPEL’s conference call:

• Second-quarter revenue rose 14.7% to a record $143.1 million, exceeding management’s expectations despite approximately $2 million of sales pulled forward ahead of anticipated price increases. EBITDA increased 17.6%, while operating margin reached 16.2%.
• Operating cash flow reached a record $30.8 million, with improved cash conversion and lower days sales outstanding. Window film revenue grew 16.1% to $32.5 million, and management expects gross margin to increase modestly through the remainder of the year.
• Management expects third-quarter revenue of $137 million to $139 million, below Q2, reflecting seasonality, $1 million to $2 million of additional sales pulled forward, and continued weakness in Europe and the Middle East. Dealership demand remains pressured by FTC compliance concerns.
• XPEL is investing approximately $110 million in manufacturing facilities in San Antonio and China, with additional capital expenditures expected through early 2027. Incremental margin benefits are expected beginning in mid-2027, with a mid-20% operating-margin run rate targeted by the end of 2028.
• China revenue reached $15.9 million despite domestic vehicle sales declining approximately 20% year over year, while India grew more than 60%. Management also plans to pursue small service- and OEM-adjacent acquisitions and use remaining cash flow for share repurchases, though manufacturing-related startup costs reduced Q2 earnings by about $0.03 per share.

XPEL Stock Down 5.2%

Shares of NASDAQ XPEL opened at $47.68 on Friday. The company has a current ratio of 2.61, a quick ratio of 1.37 and a debt-to-equity ratio of 0.14. The business has a 50-day moving average of $45.68 and a 200-day moving average of $45.96. The firm has a market capitalization of $1.31 billion, a price-to-earnings ratio of 24.20 and a beta of 1.09. XPEL has a 12 month low of $31.50 and a 12 month high of $55.91.

XPEL News Roundup

Here are the key news stories impacting XPEL this week:

• Positive Sentiment: XPEL reported record second-quarter revenue of $143.1 million, up 14.7% year over year, while gross margin improved to 44.1% from 42.9%. XPEL Reports Record Revenue of $143.1 million; Revenue Growth of 14.7% in Second Quarter 2026
• Positive Sentiment: Adjusted earnings of $0.68 per share exceeded analyst expectations of approximately $0.60-$0.61, and revenue also surpassed consensus estimates of about $135.1 million. EPS increased from $0.59 in the prior-year quarter. XPEL, Inc. Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: B. Riley raised its XPEL price target to $65 from $55 and maintained a Buy rating, reflecting confidence in the company’s growth prospects. B. Riley price target update
• Positive Sentiment: Management outlined a goal of reaching a mid-20% operating-margin run rate by the end of 2028, suggesting potential for significant long-term profitability improvement. XPEL targets mid-20% operating margin run rate
• Neutral Sentiment: The company’s second-quarter performance showed continued execution of its strategic initiatives, with revenue growth accelerating from the year-ago period. XPEL surpasses expectations with 14.7% revenue growth
• Negative Sentiment: Third-quarter revenue guidance of $137 million to $139 million was slightly below the $139.1 million analyst consensus, creating a near-term disappointment despite the strong second-quarter beat. XPEL third-quarter guidance

Wall Street Analyst Weigh In

XPEL has been the topic of several analyst reports. B. Riley Financial upped their price target on XPEL from $55.00 to $65.00 and gave the company a “buy” rating in a research report on Thursday. Freedom Capital cut shares of XPEL from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 7th. Zacks Research upgraded shares of XPEL from a “strong sell” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of XPEL in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $65.00.

Institutional Investors Weigh In On XPEL

Several hedge funds have recently bought and sold shares of the stock. Illinois Municipal Retirement Fund lifted its stake in shares of XPEL by 1.9% in the 4th quarter. Illinois Municipal Retirement Fund now owns 12,610 shares of the company’s stock worth $629,000 after purchasing an additional 236 shares during the period. Osaic Holdings Inc. boosted its holdings in shares of XPEL by 13.8% in the fourth quarter. Osaic Holdings Inc. now owns 2,790 shares of the company’s stock worth $139,000 after buying an additional 339 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in XPEL by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,994 shares of the company’s stock valued at $441,000 after buying an additional 619 shares during the period. Franklin Resources Inc. grew its position in XPEL by 4.0% during the third quarter. Franklin Resources Inc. now owns 16,956 shares of the company’s stock valued at $561,000 after buying an additional 653 shares during the period. Finally, Steward Partners Investment Advisory LLC increased its holdings in XPEL by 462.9% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 985 shares of the company’s stock valued at $49,000 after buying an additional 810 shares during the last quarter. 75.08% of the stock is currently owned by institutional investors.

XPEL Company Profile

XPEL, Inc is a leading manufacturer and distributor of advanced protective films and coatings for automotive, marine, aviation, and architectural applications. The company’s core products include paint protection film (PPF), window tinting film, and ceramic coatings designed to shield surfaces from scratches, environmental contaminants, and UV damage. XPEL’s flagship PPF, known for its self-healing properties, is engineered to maintain a vehicle’s factory finish by resisting swirl marks, stone chips, and acid rain.

Beyond automotive protection, XPEL has expanded its offerings to include protective films for electronics and architectural surfaces, providing solutions that enhance durability and prolong the life of high-value assets.