New York, May 21, 2026, 06:05 (EDT)
- XPEL ended Wednesday at $45.21, gaining 4.53% ahead of Thursday’s regular session on Nasdaq.
- $XPEL reported a $60.4 million property buy in San Antonio, backed by a $44.8 million loan from PNC, according to a May 20 filing. The deal also included an amended credit facility from Wells Fargo.
- The company expects the wider investment to have little effect on 2026 EPS, not counting one-time charges. Management is projecting some margin contribution from the middle of 2027.
XPEL jumped 4.5% Wednesday after the company said it is targeting about $110 million for manufacturing and supply-chain growth and also gave new details on financing tied to its San Antonio base. Shares finished at $45.21, valuing the Nasdaq-traded company near $1.25 billion.
Timing is key here. XPEL is shifting from mostly asset-light and using a lot of third-party manufacturing to taking tighter control of production, quality, and logistics. The company still aims for operating margins in the mid-20% range by 2028. Operating margin shows profit from operations as a slice of revenue.
The San Antonio-based company said its investment covers real estate, capex and buying a plant in China. The $110 million total lands within the $75 million to $150 million range executives gave earlier. Management is sticking to the framework it already shared with investors.
XPEL picked up a four-building property totaling around 435,000 square feet in San Antonio, where it’s already one of the main tenants. It expects to use nearly 230,000 square feet for itself, and will move a separate leased operations facility into the complex in the next 12 to 24 months.
XPEL gave more info in a Wednesday filing. The company put the price for the properties at about $60.4 million. Part of that was a $44.8 million secured loan from PNC Bank, maturing in 2036, with a 4.7% rate at closing. The filing also said Wells Fargo changed XPEL’s credit facility to permit the building debt, plus an equity investment up to $18 million for the deal.
XPEL CEO Ryan Pape said the San Antonio site is the “right footprint” for the company’s next phase. Speaking about China, Pape said local capacity would support XPEL as it looks to serve “the largest car market in the world.” Business Wire
XPEL moved to buy its Chinese aftermarket distributor last year, and now the company is opening a facility in China. In its 2025 annual report, XPEL said it plans to go direct in most of the world’s 25 largest car markets, picking up distributors in India, Thailand, Japan, and China.
XPEL shares have rebounded 10.1% in the past five sessions, MarketScreener data showed, but the stock is still down 9.4% year-to-date as of Wednesday’s close. The move leaves the stock some way from recovering this year’s losses.
XPEL’s earnings picture has strengthened from last year. The company posted first-quarter revenue of $117.4 million, up 13.1%. Net income was $10.3 million, with diluted EPS at 37 cents. EBITDA climbed 17.8% to $17.0 million. Pape said it was “solid top and bottom line performance.” Business Wire
XPEL said it expects second-quarter revenue between $135 million and $137 million. The planning around manufacturing is in focus this time as investors question if XPEL’s higher volume will mean stronger margins, or just more costs.
XPEL sells paint protection film, window film and ceramic coatings, with products for cars, buildings and marine. Surface and paint protection film accounted for 52.4% of 2025 revenue. Automotive window film contributed 16.6%. Installation labor was 18.3%. The DAP software database includes over 90,000 vehicle applications.
XPEL faces tough competition. The company’s annual report lists Eastman Chemical’s LLumar and SunTek brands, plus suppliers from Korea and China, as major rivals in the surface and paint protection film market. With its new plants, XPEL may shore up supply and quality control, but is also taking on more manufacturing risk it once left to partners.
The risk side still stands out: integration in China, more fixed costs, forex changes and trade limits could all weigh on hoped-for margin gains. XPEL also flagged risks like Chinese regulatory pressures, problems with minority shareholders at its local ops, tariffs, and losing installers or dealer channels, all of which could hit sales or profits.
