Xpel President and CEO Ryan Pape says the San Antonio-based manufacturer set multiple records in the second quarter.
Xpel
Xpel Inc. set multiple earnings records in the second quarter, exceeding President and CEO Ryan Pape’s expectations.
The San Antonio-based manufacturer of automotive protective films and coatings reported that revenue reached a record $143.1 million, up 14.7% compared with $124.7 million in the second quarter of 2025.
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Its window film product line, which accounted for nearly a quarter of that revenue, set its own revenue record of $32.5 million, rising 16.1%.
Second-quarter profit rose 10.7% to $18 million. On a per-share basis, that beat analysts’ consensus estimate of 61 cents per share.
The news fueled a 9.5% increase in Xpel’s stock price, closing at $50.29 on Wednesday.
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The U.S. region saw revenue grow 11.7% to $78.6 million, also a record high for the company. Xpel attributed the surge in revenue to a strong domestic portfolio. Now it’s working to amp up its foreign segments.
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READ MORE: Xpel invests $110M to beef up its San Antonio supply chain and boost its presence in China
“We’ve built out most of the global distribution base that we think we need,” Pape said.
Xpel is nearing the one-year anniversary of its acquisition of a Chinese distributor. The segment reported revenue that more than doubled to $15.9 million, even amid a challenging quarter for the Chinese auto market. Pape said sales in the country were down close to 20% on a year-over-year basis.
This spring, the company purchased an existing manufacturing facility in China to increase its footprint in the country. At the time, Pape said, “You can’t be really competitive in China with U.S.-made goods.”
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“We don’t expect much, if any, of that product to end up in the North American market,” he said during Wednesday’s earnings call with investors.
The company’s Middle East and India division felt the ripple effects of the Iran war during the quarter, with the segment’s revenue falling 5%.
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But, Pape said, that “impact was not as great as we feared” it would be.
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The decline was driven by a shortage of vehicles “rather than a broader sort of collapse in consumer demand and confidence,” he said. Xpel is hopeful it will be able to recapture that business in the second half of the year.
Xpel has been working to develop its business in India, which grew more than 60% in the quarter, Pape said. But, he pointed out, that comes from a much smaller base than in its other markets.
“That’s the third-largest market for car sales in the world,” Pape said about India. “Many don’t realize that, and obviously, it’s still developing. We’re well-positioned to continue to grow significantly in India and in the Middle East.”
Xpel purchased this spring a four-building site in San Antonio, where it already had been leasing space for its existing manufacturing facility. Pape said the purchase will be “transformational” for the company, calling it the centerpiece of the company’s North American manufacturing and supply chain footprint.
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The investment in the San Antonio complex and the Chinese manufacturing facility is costing the company about $110 million. Pape expects to see incremental margin benefits starting in mid-2027.
Even as it’s expanding its manufacturing capability, the company is shifting its focus to prioritize quality over quantity to boost efficiency and working capital, he said.
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“We’re aggressively looking to reduce (the number of products) and consolidate what we’re offering alongside our manufacturing expansion,” Pape said.