XPEL Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 12:01 PM CDT 48 min read

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Date

Wednesday, May 6, 2026 astatine 11:00 a.m. ET

Call participants

• Founder, Chairman, President, and Chief Executive Officer — John Smith

• Executive Vice President and Chief Financial Officer — Chris George

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Full Conference Call Transcript

John Smith, our Founder, Chairman, President, and Chief Executive Officer, and Chris George, Executive Vice President and Chief Financial Officer. Before I crook the telephone implicit to John, I person a fewer housekeeping items to cover. A replay of today's telephone volition beryllium disposable by webcast and accessible from our website astatine selectwater.com. There volition besides beryllium a recorded telephonic replay disposable until 05/20/2026. The entree accusation for this replay was besides included successful yesterday's net release. Please enactment that the accusation reported connected this telephone speaks lone arsenic of today, 05/06/2026, and therefore, time-sensitive accusation whitethorn nary longer beryllium close astatine the clip of the replay listening oregon transcript reading.

In addition, the comments made by absorption during this league telephone whitethorn incorporate forward-looking statements wrong the meaning of the United States national securities laws. These forward-looking statements bespeak the existent views of XPEL, Inc. management. However, assorted risks, uncertainties, and contingencies could origin our existent results, performance, oregon achievements to disagree materially from those expressed successful the statements made by management. Listeners are encouraged to work our yearly study connected Form 10-Ks, our existent reports connected Form 8-K, arsenic good arsenic our quarterly reports connected Form 10-Q to recognize those risks, uncertainties, and contingencies. Please notation to our net announcement released yesterday for reconciliations of non-GAAP fiscal measures. Now I would similar to crook the telephone implicit to John.

John Smith: Thanks, Garrett. Good morning, and convey you for joining us. I americium pleased to beryllium discussing XPEL, Inc. again with you today. The 2026 was a beardown commencement to the twelvemonth for XPEL, Inc. I would similar to commencement with immoderate of the cardinal archetypal 4th highlights and different strategical and marketplace updates, past I volition manus it to Chris to sermon the archetypal 4th fiscal results and guardant outlook successful much detail. The archetypal 4th was a large commencement for the twelvemonth for us. We executed wrong oregon up of our expectations crossed each parts of our business, continued to adhd caller contracts to the portfolio, and are good positioned for a beardown remainder of the year.

During the archetypal quarter, connected a consolidated basis, we accrued gross by $19.5 million, accrued adjusted EBITDA by $13.5 million, and accrued nett income by $11.5 cardinal arsenic compared to 2025. Our h2o infrastructure conception performed precise good successful the archetypal quarter, meaningfully outpacing our guidance for the period. During the archetypal quarter, we accrued our h2o infrastructure revenues by 19% comparative to 2025. Additionally, h2o infrastructure gross margins earlier D&A accrued to 56%, driving consolidated gross margins earlier D&A supra 30% for the archetypal clip and to a caller all-time precocious for the company.