XPEL, Inc. (Nasdaq: XPEL) announced a $110 million investment in manufacturing and supply chain expansion, including the acquisition of a 435,000 sq ft facility in San Antonio and a manufacturing site in China. The company plans to consolidate operations into the San Antonio site over 12 to 24 months, occupying 230,000 sq ft. The China facility supports XPEL's direct market strategy in the world’s largest automotive market. The investment, funded through operating cash flow and real estate financing, is expected to generate incremental margin contributions beginning mid-2027. XPEL reaffirmed its 2028 target of mid-20% operating margins. The company anticipates minimal EPS impact in 2026, with synergies offsetting increased costs.
San Antonio Facility Expansion
XPEL has purchased a four-building complex in San Antonio, Texas, totaling approximately 435,000 square feet. The company currently operates as a substantial tenant in the site and plans to consolidate a separate leased facility into this location over the next 12 to 24 months. The company will occupy about 230,000 square feet of the site, which will serve as the centerpiece of its North American manufacturing and operations footprint.
“San Antonio has been XPEL’s home for more than two decades, and we’re proud to make a long-term commitment of this scale to our employees and to the city. This site gives us the space to consolidate, the room to grow our in-house manufacturing capabilities, and the flexibility to adapt as our needs evolve. It’s the right footprint for the next phase of the business.” — Ryan Pape, President and Chief Executive Officer of XPEL
The remaining space on the site is leased to third parties, providing the company with significant optionality for future growth. The acquisition reduces execution risk and timelines compared to building from scratch, allowing the company to scale without disrupting ongoing operations.
China Manufacturing Facility Acquisition
XPEL has acquired a manufacturing facility in China to support its direct market strategy in the world’s largest automotive market. This move follows the company’s previously announced acquisition of its Chinese aftermarket distributor in September 2025. The facility will help reduce lead times and improve responsiveness for Chinese customers.
According to the company, the investment supports its strategy of strengthening direct go-to-market presence in key international markets. The acquisition is expected to enhance the company’s ability to serve customers across China with localized production.
Funding and Financial Outlook
The $110 million investment falls within the previously announced range of $75 million to $150 million. The company plans to fund the initiative through a combination of cash on hand, operating cash flow, and real estate financing. The majority of the investment is expected to be covered by operating cash flow over the next two years.
XPEL reaffirmed its 2028 financial targets, including achieving operating margins in the mid-20% range on a run-rate basis. Excluding one-time costs, the company anticipates minimal impact on 2026 earnings per share (EPS), as increased occupancy costs will be offset by synergies from the China facility acquisition. The company expects to begin recognizing incremental margin contributions from these initiatives starting in mid-2027.
Strategic Supply Chain Integration
The investment is designed to improve agility, quality, and innovation speed across the company’s global operations. Ryan Pape emphasized that the initiatives are intended to increase responsiveness to the diverse needs of XPEL’s global customer base, which includes automotive, architectural, and marine industries.
XPEL continues to rely on third-party suppliers as part of its broader supply chain strategy, ensuring that the expansion complements, rather than replaces, existing supplier relationships.
Source: www.businesswire.com
Compiled from international media by the SCI.AI editorial team.
