Exco Technologies Limited Announces Normal Course Issuer Bid
MWN-AI** Summary
Exco Technologies Limited (TSX: XTC) has received approval from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid (NCIB) targeting the purchase of common shares for cancellation. The NCIB will commence on February 20, 2026, and conclude on February 19, 2027, allowing Exco to acquire a maximum of 1,706,558 common shares, which constitutes 10% of its public float as of February 8, 2026. The total number of outstanding shares is 37,891,331, highlighting the significant scope of this repurchase program.
Exco plans to conduct these purchases through TSX platforms and alternative Canadian trading systems, procuring shares at prevailing market rates and subsequently canceling them. The specifics of the share buyback, including the number of shares procured and timing, will be decided by Exco. According to TSX policies, the company can repurchase a maximum of 4,931 shares daily, based on its recent average trading volume of 19,726 shares. Additionally, Exco is permitted to execute block purchases weekly under regulatory guidelines.
Previously, Exco conducted an NCIB from February 20, 2025, to February 19, 2026, under which it repurchased 572,656 shares at an average price of $6.62 each. The Board of Directors believes that the market price may not fully reflect the company's inherent value, making the share repurchase a strategic move to bolster shareholder value amid market fluctuations.
Exco Technologies is a global leader in supplying innovative technologies to the die-cast, extrusion, and automotive sectors, operating across 21 locations in 9 countries and employing around 4,500 personnel.
MWN-AI** Analysis
Exco Technologies Limited's recent announcement of a Normal Course Issuer Bid (NCIB) reflects a strategic move to enhance shareholder value and signals confidence in its underlying business fundamentals. With the ability to repurchase up to 1.7 million shares, representing approximately 10% of its public float, Exco is positioning itself to leverage potential market undervaluation.
For investors, this NCIB presents both opportunities and considerations. Firstly, it underscores the company's belief that its shares may be undervalued. The buyback program could lead to an increase in earnings per share (EPS) as the total number of shares outstanding decreases, which may enhance the overall market perception and price of the stock in the long term. Additionally, the historical context shows Exco previously repurchased 572,656 shares at a weighted average price of $6.62, indicating a commitment to shareholder returns within a well-defined price strategy.
However, investors should remain vigilant regarding market conditions. Exco plans to execute the buyback at prevailing market rates, taking into account its average trading volume of around 19,726 shares per day, with a daily repurchase cap of about 4,931 shares. This gradual re-acquisition strategy can help prevent sudden price spikes that might occur with a more aggressive buyback approach, protecting existing shareholders from volatility.
While the NCIB can support share price stabilization and potential appreciation, investors should evaluate Exco’s financial health and operational performance in relation to broader industry trends, especially given its significant exposure to the automotive and die-cast markets. Continual assessment of Exco's cash flow adequacy and market conditions will be crucial. Long-term growth prospects should guide investment decisions, keeping in mind that any substantial repurchase program is best executed against a backdrop of solid financial fundamentals.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
TORONTO, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Exco Technologies Limited (TSX: XTC) ("Exco" or the "Company") today announced that the Toronto Stock Exchange ("TSX") has approved the Company's normal course issuer bid ("NCIB"). Under the NCIB, Exco has the right to purchase for cancellation, from February 20, 2026 to February 19, 2027, a maximum of 1,706,558 common shares, representing 10% of the 17,065,583 shares forming Exco's public float as at February 8, 2026. As of February 8, 2026, Exco had 37,891,331 common shares issued and outstanding.
Any shares purchased by Exco under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading systems, at prevailing market rates and any common shares purchased by the Company will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Exco. Any purchases made by Exco pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.
During the most recently-completed six months, the average daily trading volume for the common shares of Exco on the TSX was 19,726 shares. Consequently, under the policies of the TSX, Exco will have the right to repurchase under its NCIB, during any one trading day, a maximum of 4,931 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,770,513 common shares for the period of February 20, 2025 to February 19, 2026, the Company has purchased 572,656 common shares on the open market as of February 8, 2026 at a weighted average purchase price of $6.62 per common share.
Exco’s Board of Directors believes the underlying value of the Company may not be reflected in the market price of its common shares from time to time and that, at appropriate times, repurchasing its shares through the NCIB may represent a good use of Exco's financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. Thus, the Board has determined that the NCIB is in the best interest of the Company and its shareholders.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 21 strategic locations in 9 countries, we employ approximately 4,500 people and service a diverse and broad customer base.
| Source: | Exco Technologies Limited (TSX-XTC) |
| Contact: | Darren Kirk, President and Chief Executive Officer |
| Telephone: | (905) 477-3065 ext. 7233 |
| Website: | https://www.excocorp.com |
FAQ**
How does Exco Technologies Ltd EXCOF plan to utilize the capital freed up from the share repurchase under its normal course issuer bid to drive future growth or investment opportunities?
What factors does Exco Technologies Ltd EXCOF's Board of Directors consider when determining the timing and amount of shares to repurchase within the NCIB framework?
Can Exco Technologies Ltd EXCOF provide insights into how previous share repurchases under the NCIB have affected its overall shareholder value and market perception?
Given the global presence of Exco Technologies Ltd EXCOF, how does the company plan to leverage its strategic locations to support its buyback strategy and enhance shareholder returns?
**MWN-AI FAQ is based on asking OpenAI questions about Exco Technologies Ltd (OTC: EXCOF).
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