What's Happening?
XPEL, Inc., a global provider of protective films and coatings, reported an 11.1% increase in revenue for the third quarter of 2025, reaching $125.4 million. Despite the revenue growth, the company's EBITDA
decreased by 8.1% to $19.9 million, and net income fell by 11.8% to $13.1 million. XPEL announced plans to invest between $75 million and $150 million over the next two years in manufacturing and supply chain enhancements. This investment aims to improve gross margins to 52-54% and operating margins to the mid to high 20% range by 2028.
Why It's Important?
XPEL's revenue growth highlights the company's strong market position and potential for future profitability. The planned investments in manufacturing and supply chain are expected to enhance operational efficiency and margin improvements, which could lead to increased shareholder value. The company's focus on strategic investments indicates a commitment to long-term growth and competitiveness in the protective films and coatings industry.
What's Next?
XPEL plans to continue its strategic investments, with expectations of improved gross margins and operating margins by 2028. The company will host a conference call to discuss its third-quarter results and future outlook. Stakeholders will be watching for further developments in XPEL's investment strategies and their impact on financial performance.
