XPEL, Inc. Earnings Recaps
Q1 2026
May 7, 2026
XPEL's stock fell 11% following earnings as investors likely reacted negatively to softer than expected near-term guidance and cautious commentary on the macro outlook, despite strong water infrastructure growth and record margins.
Key takeaways
- Water infrastructure segment revenue rose 19% year-over-year to a record ~$97 million, with gross margins before D&A reaching a new high above 30% consolidated and 56% segment level.
- The company added multiple new contracts, including MVCs and acreage dedications, expanding footprint across key basins with limited capital required.
- Recent acquisitions in the Northern Delaware Basin added disposal capacity, water rights, and storage, expected to drive future growth.
- Water services segment grew 7% quarter-over-quarter, supported by strong demand in chemical technology products, with anticipated double-digit revenue and margin growth in Q2.
- Management flagged uncertainty around commodity markets and geopolitical risks, indicating a cautious stance despite potential upside from higher skim oil pricing and a stable U.S. energy industry outlook.
Q3 2025
Nov 6, 2025
XPEL, Inc. reported strong Q3 2025 results with record revenue of $125.4 million, driven by robust growth in the U.S. and EU regions, despite ongoing challenges in Canada and some markets in Latin America.
Key takeaways
- Revenue grew 11.1%, with U.S. sales reaching $71.7 million and EU revenues up 28.8% to $16.5 million.
- Completed acquisition of the Chinese distributor, positioning for future growth despite minimal immediate financial impact.
- Gross margins pressured by unfavorable price dynamics, but expected recovery beginning in Q4.
- Anticipating Q4 revenues in the $123 million to $125 million range, led to full-year growth projection of 13% to 14%.
- Continued high SG&A due to investments in global market expansion, particularly in new Asian markets.