Xpel Stock Earnings Reports

XPEL, Inc. delivered a strong start to 2026 with broad-based execution across its segments. Consolidated revenue, adjusted EBITDA, and net income increased materially year-over-year in Q1, driven primarily by Water Infrastructure which posted record quarterly revenue (~$97M), 56% gross margin before D&A, and 19% revenue growth versus 2025. Management upgraded Water Infrastructure full-year growth guidance to 25%–30% (from 20%–25%), increased 2026 net CapEx guidance to $200M–$250M (from $175M–$225M) to support ongoing projects and recent tuck-in acquisitions, and ended the quarter with reduced net debt (~$196M) and >$300M total liquidity after an equity offering. Water Services outperformed expectations (sequential revenue +7%, margins ~21.8%), and Chemical Technology expects a strong Q2 (revenue +10%–15% Q/Q, margins moving to ~20%–21%) driven by demand for friction reducers and specialty surfactants. Management emphasized continued commercialization wins, low-to-no-capital tie-in opportunities across multiple basins, recent Northern Delaware acquisitions (adding disposal capacity, storage and water rights), and active dialogues around non‑oilfield water opportunities (data centers, municipal projects). They reiterated focus on cost control (SG&A down >6% in Q1), capital discipline, and the potential for meaningful free cash flow generation into 2027 as growth capex cycles mature. Management remains cautious but positioned to capture upside from a potentially stronger commodity environment while balancing returns to shareholders over time (dividend and opportunistic buybacks).