XPEL Allocates $110 Million for Global Production Expansion, Advancing Texas Headquarters and China Facility

Deep News05-19

XPEL, a global leader in paint protection and architectural films, has announced a planned investment of approximately $110 million to expand its global manufacturing and supply chain capabilities. A central component of this strategy involves the acquisition of a four-building, 435,000-square-foot campus in San Antonio, Texas, where the company is headquartered. XPEL will occupy roughly 230,000 square feet of this space.

The Texas campus is designated to become the company's North American manufacturing and operational hub. Over the next 12 to 24 months, XPEL plans to consolidate an existing leased facility into this new location. This move is intended to reduce execution risks and provides ample flexibility for future growth.

In a parallel strategic move, XPEL has acquired a manufacturing facility in China. This acquisition supports the company's strategy following its purchase of its Chinese distributor, completed in September 2025. Localized production is expected to enhance service for the world's largest automotive market and strengthen XPEL's direct market strategy in the Asia-Pacific region.

CEO Ryan Pape stated that San Antonio has been the company's home for over two decades and that this investment represents a long-term commitment to its employees and the city.

The expansion will be funded through a combination of cash reserves, operating cash flow, and real estate financing. The company anticipates that operating cash flow will primarily cover the remaining investment over the next two years.

In the same announcement, XPEL reaffirmed its target to achieve operating margins in the mid-20% range by the end of 2028. The company recently reported first-quarter results, with revenue increasing 13.1% year-over-year to $117.4 million and net income growing 20.5% to $10.3 million, demonstrating a solid financial foundation.

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