XPEL, a global provider of protective films and coatings, announced an approximately $110 million manufacturing and supply chain investment that includes the expansion of its operations in San Antonio, Texas, and the acquisition of a manufacturing facility in China. The investment covers real estate, capital expenditures, and the China facility acquisition, and remains within the company’s previously announced $75 million to $150 million investment framework.
As part of the initiative, XPEL purchased a four-building site in San Antonio totaling approximately 435,000 square feet. The company said the site will become the centerpiece of its North American manufacturing and operations footprint. XPEL currently operates within the facility as a substantial tenant, which the company believes lowers execution risk and accelerates timelines for scaling operations while leveraging existing capital investments.
Over the next 12 to 24 months, XPEL plans to consolidate a separate leased operations facility into the newly acquired site. The company expects to occupy approximately 230,000 square feet of the overall property, while the remaining space is currently leased to third parties, providing additional flexibility for future expansion opportunities.
XPEL emphasized that the investment is designed to complement its existing supplier relationships rather than replace them, maintaining a diversified supply chain strategy.
Separately, XPEL acquired a manufacturing facility in China to support customers in the country, which the company described as the world’s largest automotive market. The move builds on the company’s direct-market strategy in China, including its previously announced acquisition of its Chinese aftermarket distributor in September 2025.
The company said the investments will be funded through a combination of cash on hand, operating cash flow, and new financing tied to the San Antonio real estate purchase. XPEL expects most of the remaining investment to be funded through operating cash flow over the next two years.
XPEL reaffirmed its previously announced financial targets, including achieving operating margins in the mid-20% range on a run-rate basis by the end of 2028. The company said it expects minimal impact to 2026 EPS excluding one-time transaction costs, with incremental margin contributions anticipated beginning in mid-2027.
KEY QUOTES:
“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.
Acquiring manufacturing capacity in China is a natural extension of the direct-market strategy we’ve executed across our key international markets. Having local production positions us to better serve the largest car market in the world.
The investments we are making , in San Antonio, in China, and across our supply chain , are designed to improve our agility and quality while increasing the rate of innovation and responsiveness to the varied needs of our global customer base.”
Ryan Pape, President And Chief Executive Officer, XPEL
