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EXCO Announces Share Buyback Program, Signaling Confidence

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  Published in Science and Technology on Wednesday, February 18th 2026 at 8:46 GMT by Toronto Star
      Locale: Ontario, CANADA

TORONTO, February 18, 2026 - EXCO Technologies Limited (TSX: XTC) today announced the commencement of a Normal Course Issuer Bid (NCIB) for its common shares, signaling confidence in the company's financial health and a commitment to enhancing shareholder value. The program allows EXCO to repurchase up to 5,137,687 shares, representing roughly 10% of its current outstanding shares, as of February 16, 2026.

What is a Normal Course Issuer Bid?

An NCIB is a method companies use to buy back their own shares from the open market. It's a common practice, permitted by Canadian securities laws, that allows companies with excess capital and strong cash flow to return funds to shareholders in a tax-efficient manner. Instead of distributing cash directly as dividends, a share buyback reduces the number of shares available, potentially increasing earnings per share and boosting the stock price.

EXCO's Specifics: 10% of Outstanding Shares

EXCO's decision to authorize a repurchase of up to 10% of its shares, totaling 5,137,687 shares, is noteworthy. With 51,376,870 shares currently outstanding, this represents a significant portion of its equity. The program is valid for one year, beginning today, February 18, 2026. The company clarifies that purchases will be made at market prices, either through standard open market transactions or through larger block trades, indicating an intention to optimize execution based on market conditions.

Why are Companies Initiating Buybacks Now?

The current economic climate, characterized by [(Note to journalist: insert a brief contextual sentence about current economic conditions in early 2026 - e.g., moderate growth, stable interest rates, etc.)], makes share buybacks particularly attractive. Companies that have generated substantial cash flow but see limited opportunities for high-return internal investment often turn to buybacks. This is especially true when they believe their stock is undervalued by the market. It's a direct way to reward investors and signal confidence in future performance.

Implications for EXCO Shareholders

This NCIB is broadly positive for EXCO Technologies shareholders. Here's a breakdown of the potential benefits:

• Increased Earnings Per Share: By reducing the number of shares outstanding, the company's earnings are effectively spread across fewer shares, leading to a higher earnings per share (EPS) figure. This is a key metric for investors.
• Potential Stock Price Appreciation: A reduced supply of shares, combined with consistent demand, can drive up the stock price. While not guaranteed, buybacks often provide a floor for the stock.
• Signaling Effect: Announcing a buyback program sends a clear message to the market that management believes the company's shares are undervalued. This can boost investor confidence.
• Efficient Capital Allocation: The buyback represents an efficient use of EXCO's capital, demonstrating responsible financial management.

EXCO's Broader Financial Context

EXCO Technologies Limited operates in [(Note to journalist: insert a brief description of EXCO's business and industry - e.g., the industrial technologies sector, specializing in specialized tooling and automation solutions)]. The company has consistently demonstrated [(Note to journalist: research and insert a few key financial performance indicators - e.g., revenue growth, profitability margins, strong cash flow generation)] in recent years. This strong financial foundation is what enables it to undertake a program like the NCIB.

How the Buyback Will Be Executed

EXCO has not pre-defined a strict schedule for the share repurchases. The company will make purchases "from time to time" based on market conditions and its assessment of whether the shares represent a good value. This flexibility is crucial. Buying back shares at excessively high prices would negate the benefits of the program. Compliance with Toronto Stock Exchange rules regarding the number of shares purchased in a single day and the overall price will, of course, be maintained.

Looking Ahead

The NCIB is a positive development for EXCO Technologies and its shareholders. It reflects the company's financial strength, disciplined capital allocation strategy, and commitment to delivering value. Investors will be watching closely to see how effectively the company executes the buyback program and how it impacts key financial metrics in the coming quarters. Further updates on the NCIB, including the number of shares repurchased, will likely be included in EXCO's quarterly financial reports.