Company Categorically Rejects All Allegations Which it Believes to be False, Misleading and Malicious Company Reaffirms Recently Increased Full Year 2025 Guidance Miami, FL, Aug. 21, 2025 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NYSE: TGLS) ("Tecnoglass" or the "Company"), a leading producer of high-end aluminum and vinyl windows and architectural glass for the global residential and commercial end markets, today issued the following statement in response claims made in a short seller report: Tecnoglass catego ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, demonstrate strong year-over-year growth in revenues and net income, with total assets increasing to **$1.18 billion** and shareholders' equity reaching **$736.0 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.18 billion** and shareholders' equity significantly grew to **$736.0 million**, driven by investments and strong retained earnings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $639,399 | $560,010 | | **Property, plant and equipment, net** | $421,954 | $344,433 | | **Total Assets** | **$1,181,209** | **$1,016,648** | | **Total Current Liabilities** | $320,481 | $265,826 | | **Total Liabilities** | **$445,208** | **$385,465** | | **Total Shareholders' Equity** | **$736,001** | **$631,183** | [Condensed Consolidated Statements of Operations and Other Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income) The company reported strong year-over-year growth for Q2 and H1 2025, with Q2 operating revenues increasing **16.3%** to **$255.5 million** and net income rising **25.8%** to **$44.1 million** Q2 2025 vs Q2 2024 Performance (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $255,546 | $219,654 | 16.3% | | Gross Profit | $114,335 | $89,577 | 27.6% | | Operating Income | $61,204 | $51,134 | 19.7% | | Net Income | $44,083 | $35,028 | 25.8% | | Diluted EPS | $0.94 | $0.75 | 25.3% | H1 2025 vs H1 2024 Performance (in thousands, except EPS) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $477,834 | $412,281 | 15.9% | | Gross Profit | $211,860 | $164,237 | 29.0% | | Operating Income | $120,533 | $92,156 | 30.8% | | Net Income | $86,272 | $64,758 | 33.2% | | Diluted EPS | $1.84 | $1.38 | 33.3% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash provided by operating activities was **$64.8 million**, while cash used in investing activities significantly increased to **$48.6 million** Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Cash Provided by Operating Activities** | **$64,760** | **$67,945** | | **Cash Used in Investing Activities** | **($48,627)** | **($27,802)** | | **Cash Used in Financing Activities** | **($14,924)** | **($40,327)** | | Net Increase (Decrease) in Cash | $3,025 | ($2,703) | | Cash and Cash Equivalents - End of period | $137,907 | $126,805 | - Key drivers for investing activities in H1 2025 included **$62.9 million** for property and equipment acquisition and **$6.8 million** for a business acquisition[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies and events, including the **$10.4 million** acquisition of Continental Glass Systems and an increase in project backlog to **$820.0 million** - On April 3, 2025, the company acquired assets of Continental Glass Systems, LLC for a purchase price of **$10.4 million**, resulting in **$6.6 million** of goodwill[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) - As of June 30, 2025, the company had **$820.0 million** of remaining performance obligations (backlog), which it expects to recognize as revenue over the next three years[48](index=48&type=chunk) Revenue by Geography - H1 2025 vs H1 2024 (in thousands) | Geography | H1 2025 | H1 2024 | | :--- | :--- | :--- | | United States | $454,801 | $393,701 | | Colombia | $13,035 | $11,069 | | Other | $10,000 | $7,511 | | **Total Revenues** | **$477,834** | **$412,281** | - The company declared a quarterly dividend of **$0.15 per share** on June 10, 2025[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 and H1 2025 performance to robust U.S. market activity and commercial backlog execution, with expanded gross margins and a strong liquidity position of **$137.9 million** in cash [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased **16.3%** to **$255.5 million**, driven by U.S. market growth, while gross margin expanded to **44.7%** despite a **38.2%** rise in operating expenses due to new tariffs - Q2 2025 revenue growth was driven by a **$32.6 million (15.6%)** increase in the U.S. market, with residential revenues up **14.5%** and commercial revenues up **16.5%**[100](index=100&type=chunk) - Gross margin for Q2 2025 expanded to **44.7%** from **40.8%** in Q2 2024, aided by better pricing, improved operating leverage, and favorable FX dynamics as the Colombian peso depreciated **7.0%** against the USD[101](index=101&type=chunk)[102](index=102&type=chunk) - Operating expenses in Q2 2025 increased by **$14.7 million**, largely due to an **$8.2 million** expense from recent U.S. tariffs, as well as higher personnel and shipping costs[103](index=103&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$137.9 million** in cash and **$175.0 million** available credit, supporting **$62.9 million** in H1 2025 capital expenditures and the Continental Glass Systems acquisition - As of June 30, 2025, the company had cash and cash equivalents of **$137.9 million** and approximately **$175.0 million** available under several lines of credit[117](index=117&type=chunk) - Capital investments in H1 2025 amounted to **$62.9 million**, which included **$15 million** for real estate in South Florida for the Continental Glass Systems operations[119](index=119&type=chunk) - The acquisition of Continental Glass Systems had a total purchase price of **$10.4 million**, of which **$6.8 million** was paid in cash during the period[120](index=120&type=chunk)[124](index=124&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces primary market risks from foreign currency fluctuations, particularly COP/USD exchange rates, and volatile aluminum prices, while interest rate risk is minimal due to hedging - The company is exposed to foreign currency risk as approximately **25%** of its costs are in Colombian pesos (COP) while revenues are primarily in USD; a hypothetical **5%** appreciation of the COP would result in a **$4.5 million** decrease to net earnings based on H1 2025 results[128](index=128&type=chunk) - The company is subject to market risk from volatility in aluminum prices, a principal raw material, and attempts to mitigate this by aligning raw material costs with selling prices[132](index=132&type=chunk) - Interest rate risk is not significant as the majority of the company's variable-rate debt is covered by interest rate hedging instruments[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, excluding the newly acquired Continental Glass Systems, which will be integrated by fiscal year-end 2026 - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of June 30, 2025[134](index=134&type=chunk) - The internal control evaluation excluded the newly acquired Contiglass Asset Acquisition, LLC, in accordance with SEC guidance; Contiglass will be included in the assessment for the fiscal year ending December 31, 2026[135](index=135&type=chunk) [Part II. Other Information](index=35&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings, with ongoing matters considered part of the ordinary course of business and not expected to have a material adverse effect - The company reports no material legal proceedings and states that any ongoing matters are part of the ordinary course of business[138](index=138&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor highlights the potential adverse impact of recently imposed U.S. tariffs, including a **50%** tariff on steel and aluminum and a **10%** universal import tariff, on the company's costs and competitiveness - A new risk factor highlights the negative impact of recently imposed U.S. tariffs on the company's business[139](index=139&type=chunk) - Specific tariffs mentioned include a doubling of steel and aluminum tariffs to **50%** ad valorem in June 2025 and a new universal **10%** tariff on all imports from all countries, including Colombia, effective April 2025[139](index=139&type=chunk)[140](index=140&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,800** shares at an average price of **$76.9 per share** during Q2 2025, with approximately **$76.5 million** remaining available under the buyback program Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 1,420 | $76.9 | | May 2025 | 930 | $76.9 | | June 2025 | 450 | $75.3 | | **Total** | **2,800** | **$76.9** | - As of June 30, 2025, **$76,527,637** remained available for repurchase under the company's share buyback program[143](index=143&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended June 30, 2025[144](index=144&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files (XBRL) - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL financial data[145](index=145&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for the second quarter reached a record $255.5 million, up 16.3% year over year, driven by strong organic growth in both single-family residential and multifamily commercial businesses [5][18] - Adjusted EBITDA for the quarter was $79.8 million, representing an adjusted EBITDA margin of 31.2%, an increase from $64.1 million or a 29.2% margin in the prior year quarter [18][19] - Gross profit increased to $114.3 million, with a gross margin of 44.7%, compared to a gross margin of 40.8% in the prior year quarter, reflecting a 400 basis point improvement [19][20] Business Line Data and Key Metrics Changes - Single-family residential revenues grew 14.5% year over year to a record $109.6 million, with a strong sequential growth of 29% in orders compared to the previous quarter [6][10] - Multifamily and commercial revenues increased 17.8% year over year to $145.9 million, capitalizing on demand for luxury mid to high-rise projects in Florida [6][11] - The backlog reached an all-time high of $1.2 billion, representing approximately 2.2 times the last twelve months (LTM) multifamily and commercial revenues [11][13] Market Data and Key Metrics Changes - The company reported a healthy book-to-bill ratio of 1.2 times, maintaining a ratio above 1.1 times for eighteen consecutive quarters [13] - The backlog composition is shifting towards high-end, large-sized projects that are less sensitive to interest rate changes, providing resilience against economic fluctuations [13][14] Company Strategy and Development Direction - The company is focused on geographic expansion and enhancing its product portfolio, including the introduction of a new vinyl product line [16][27] - The acquisition of Continental Glass Systems is expected to strengthen capabilities in high-end architectural glass and diversify production into the U.S. market [11][12] - The company aims to maintain operational excellence and industry-leading margins while navigating macroeconomic uncertainties [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow faster than the market in 2025 and beyond, supported by a strong balance sheet and substantial cash position [9][24] - The company anticipates continued strong cash flow generation and has updated its full-year revenue guidance to a range of $980 million to $1.02 billion, reflecting approximately 12% growth at the midpoint [25][26] - Management noted that the market is expected to pick up again, particularly in the Florida region, despite typical seasonal slowdowns [52][54] Other Important Information - The company generated operating cash flow of $17.9 million in the second quarter, with total liquidity of approximately $310 million at quarter end [22] - Capital expenditures for the quarter were $32.5 million, including $15.1 million related to the Continental Glass Systems acquisition [22][26] Q&A Session Summary Question: Revenue pull forward impact - Management clarified that the $5 million to $7 million pull forward occurred before the announcement of price increases, with most of it expected to impact Q3 [30][31] Question: Manufacturing facility in the U.S. - Management is in the early stages of planning a fully automated plant in the U.S. and is optimistic about its potential [32] Question: Margin expectations for the second half - Management indicated that gross margins are expected to remain stable, with potential headwinds from increased commercial construction [38][41] Question: Pricing relative to competition - Management stated that pricing increases are in line with competitors, with a focus on residential projects [43] Question: July performance and new product lines - Management reported a strong July, marking the highest revenue month in the company's history, and provided updates on the new vinyl product line [48][49]

Financial Performance - Total revenues reached a record $255.5 million in Q2 2025, a 16.3% year-over-year increase[9, 30] - Adjusted EBITDA increased 24.5% year-over-year to $79.8 million, with a margin of 31.2%[9, 10, 33] - Single-family residential revenues grew 14.5% year-over-year to $109.6 million in Q2 2025[10, 30] - Multi-family and commercial revenues increased 17.8% year-over-year to $145.9 million in Q2 2025[10] - Gross margin improved by 400 bps year-over-year to 44.7% in Q2 2025[10, 33] - Adjusted net income was $48.5 million, with adjusted EPS of $1.03[10] Backlog and Orders - Backlog reached a record $1.20 billion, a 17.2% year-over-year increase[9, 10, 14] - U S backlog represents 97% of total backlog[13, 14] - Single-family residential orders increased 29% sequentially in Q2 2025[10, 23] Outlook - The company anticipates full year 2025 revenue between $980 million and $1.02 billion[50] - The company anticipates full year 2025 Adjusted EBITDA between $310 million and $325 million[50]

Tecnoglass Q2 2025 Earnings Release [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Tecnoglass achieved record Q2 2025 results, with **$255.5 million** revenue, **44.7%** gross margin, **$79.8 million** Adjusted EBITDA, and a **$1.2 billion** backlog Key Financial & Operational Metrics | Metric | Q2 2025 Value | Year-over-Year Change | | :--- | :--- | :--- | | Total Revenue | $255.5 Million | +16.3% | | Single-Family Residential Revenue | $109.6 Million | +14.5% | | Gross Margin | 44.7% | +400 bps | | Net Income | $44.1 Million | - | | Adjusted Net Income | $48.5 Million | - | | Adjusted EBITDA | $79.8 Million | +24.5% | | Adjusted EBITDA Margin | 31.2% | - | | Backlog | $1.2 Billion | +17.2% | - Strategic operational highlights include the completion of the **Continental Glass Systems** asset acquisition to diversify production into the U.S., signing a lease for a West Coast showroom to promote the new **"Legacy"** aluminum product line, and continuing a feasibility study for a new automated facility in Florida[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed record quarterly performance to the vertically integrated platform, successful pricing, and strategic diversification, with a **$1.2 billion** backlog providing visibility into 2026 - CEO José Manuel Daes emphasized that the company's vertically integrated platform, successful pricing, and the **Continental Glass** acquisition are key drivers of growth and margin expansion[4](index=4&type=chunk) - COO Christian Daes noted that the record **$1.2 billion** backlog provides project visibility well into 2026, supported by a solid uptick in single-family residential orders and an expanding geographic footprint, including a new California showroom[4](index=4&type=chunk) [Detailed Financial Performance (Q2 2025)](index=2&type=section&id=Detailed%20Financial%20Performance%20(Q2%202025)) Q2 2025 saw record revenue of **$255.5 million** (+16.3% YoY), gross margin improvement to **44.7%**, and Adjusted EBITDA growth of **24.5%** to **$79.8 million** [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenues for Q2 2025 reached a record **$255.5 million**, increasing **16.3%** YoY, driven by strong growth in both multi-family/commercial and single-family residential segments Revenue Breakdown by Segment | Revenue Segment | Q2 2025 Revenue | YoY Growth | | :--- | :--- | :--- | | **Total Revenues** | **$255.5 Million** | **+16.3%** | | Multi-family/Commercial | - | +17.8% | | Single-family Residential | - | +14.5% | - A portion of the single-family residential growth was attributed to customers accelerating orders ahead of anticipated tariff-related price adjustments[5](index=5&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross margin expanded by **400 basis points** to **44.7%** in Q2 2025, contributing to a **24.5%** increase in Adjusted EBITDA to **$79.8 million** despite higher SG&A Key Profitability Metrics | Profitability Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Profit | $114.3 Million | $89.6 Million | | Gross Margin | 44.7% | 40.8% | | Net Income | $44.1 Million | $35.0 Million | | Diluted EPS | $0.94 | $0.75 | | Adjusted Net Income | $48.5 Million | $40.5 Million | | Adjusted Diluted EPS | $1.03 | $0.86 | | Adjusted EBITDA | $79.8 Million | $64.1 Million | | Adjusted EBITDA Margin | 31.2% | 29.2% | - SG&A expenses increased mainly due to **$5.9 million** in aluminum tariffs paid in April and higher transportation and personnel expenses, partially offset by late-quarter price adjustments[7](index=7&type=chunk) [Cash Flow, Capital Allocation & Liquidity](index=3&type=section&id=Cash%20Flow%2C%20Capital%20Allocation%20%26%20Liquidity) Tecnoglass generated **$17.9 million** in operating cash flow, invested **$32.5 million** in capex (including **Continental Glass**), and maintained strong liquidity of **$310 million** Cash Flow & Liquidity Summary | Metric | Q2 2025 Value | | :--- | :--- | | Cash from Operating Activities | $17.9 Million | | Capital Expenditures | $32.5 Million | | Cash Dividends Paid | $7.0 Million | | Total Liquidity (End of Q2) | $310 Million | | Cash and Cash Equivalents | $137.9 Million | | Total Debt | $109.2 Million | - The company has approximately **$76.5 million** remaining under its current share repurchase program as of August 7, 2025[12](index=12&type=chunk) [Strategic Initiatives & Corporate Developments](index=3&type=section&id=Strategic%20Initiatives%20%26%20Corporate%20Developments) Tecnoglass is pursuing strategic growth through the **Continental Glass Systems** acquisition and advancing U.S. expansion with a new Florida facility feasibility study and West Coast showroom [Continental Glass Asset Acquisition](index=3&type=section&id=Continental%20Glass%20Asset%20Acquisition) In April 2025, Tecnoglass acquired assets from **Continental Glass Systems** for approximately **$30 million** to strengthen its U.S. market presence and create operational synergies - Acquired certain assets of **Continental Glass Systems** for approximately **$30 million** in April 2025[15](index=15&type=chunk) - The acquisition is aimed at strengthening U.S. market presence, broadening client reach, and creating synergies in the architectural glass industry[15](index=15&type=chunk) [U.S. Expansion Plans](index=1&type=section&id=U.S.%20Expansion%20Plans) The company is advancing U.S. expansion with a West Coast showroom for its **"Legacy"** aluminum product line and a feasibility study for a new automated Florida manufacturing facility - A feasibility study is underway for a new, fully automated facility in Florida to address future growth, diversify operations, and improve logistics[2](index=2&type=chunk)[14](index=14&type=chunk) - A lease was signed for a West Coast showroom to promote the new **"Legacy"** aluminum product line and support geographical expansion[2](index=2&type=chunk) [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Tecnoglass raised its full-year 2025 guidance, projecting revenues between **$980 million** and **$1.02 billion** and Adjusted EBITDA of **$310 million** to **$325 million** Full Year 2025 Financial Guidance | Guidance Metric | Full Year 2025 Range | Midpoint Growth | | :--- | :--- | :--- | | Revenues | $980 Million - $1.02 Billion | ~12% | | Adjusted EBITDA | $310 Million - $325 Million | ~15% | - The updated outlook assumes that pricing initiatives will more than compensate for a projected **$25 million** full-year impact from elevated input costs and tariffs[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements show total assets of **$1.18 billion**, net income of **$86.3 million** for six months, and **$64.8 million** cash from operations [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.18 billion**, driven by property, plant, and equipment and inventories, with shareholders' equity reaching **$736.0 million** Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $137,907 | $134,882 | | Total current assets | $639,399 | $560,010 | | Total assets | $1,181,209 | $1,016,648 | | Total current liabilities | $320,481 | $265,826 | | Total liabilities | $445,208 | $385,465 | | Total shareholders' equity | $736,001 | $631,183 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 operating revenues were **$255.5 million**, yielding a gross profit of **$114.3 million** and net income of **$44.1 million** (**$0.94** per diluted share) Consolidated Statements of Operations (Q2, in thousands) | Income Statement Item | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $255,546 | $219,654 | | Gross profit | $114,335 | $89,577 | | Operating income | $61,204 | $51,134 | | Net income | $44,083 | $35,028 | | Diluted income per share | $0.94 | $0.75 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash provided by operating activities was **$64.8 million**, with a net cash increase of **$3.0 million** for the period Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Cash Flow Item | 2025 | 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $64,760 | $67,945 | | Cash Used in Investing Activities | $(48,627) | $(27,802) | | Cash Used in Financing Activities | $(14,924) | $(40,327) | | Net Increase/(Decrease) in Cash | $3,024 | $(2,703) | [Supplemental Information](index=9&type=section&id=Supplemental%20Information) This section provides geographic revenue breakdown, with the U.S. as the dominant market, and reconciliations of non-GAAP measures like Adjusted EBITDA and Free Cash Flow [Revenues by Region](index=9&type=section&id=Revenues%20by%20Region) In Q2 2025, U.S. revenues grew **15.5%** to **$242.2 million**, comprising the majority of sales, while other countries saw significant **62.9%** growth Revenues by Geographic Region (Q2 2025, in thousands) | Region | Q2 2025 Revenue | YoY Change | | :--- | :--- | :--- | | United States | $242,205 | +15.5% | | Colombia | $6,620 | +13.5% | | Other Countries | $6,722 | +62.9% | | **Total** | **$255,546** | **+16.3%** | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed reconciliations are provided for non-GAAP metrics, including Adjusted EBITDA of **$79.8 million** and Free Cash Flow of **$0.474 million** for Q2 2025 Reconciliation to Adjusted EBITDA (Q2 2025, in thousands) | Reconciliation to Adjusted EBITDA | Amount | | :--- | :--- | | Net income | $44,083 | | Add: Interest expense | $1,350 | | Add: Income tax provision | $18,148 | | Add: Depreciation & amortization | $9,145 | | Add/Subtract: Other adjustments | $7,053 | | **Adjusted EBITDA** | **$79,779** | Reconciliation to Free Cash Flow (Q2 2025, in thousands) | Reconciliation to Free Cash Flow | Amount | | :--- | :--- | | Cash Provided by Operating Activities | $17,862 | | Less: Acquisition of property and equipment | $(32,515) | | Add back: Portion of asset acquisition in capex | $15,127 | | **Free Cash Flow** | **$474** |

Core Viewpoint - Tecnoglass, Inc. is set to release its financial results for the second quarter of 2025 on August 7, 2025, before market opening, followed by a conference call to discuss the results [1] Company Overview - Tecnoglass, Inc. is a prominent manufacturer of high-end aluminum and vinyl windows and architectural glass, catering to both residential and commercial markets [4] - The company is the second largest glass fabricator in the U.S. and the leading architectural glass transformation company in Latin America [4] - Tecnoglass operates a 5.8 million square foot manufacturing facility in Barranquilla, Colombia, serving nearly 1,000 customers across North, Central, and South America, with 95% of its total revenues generated from the U.S. market [4] - The company's products are featured in notable properties such as One Thousand Museum in Miami and Salesforce Tower in San Francisco [4]

Company Overview - Tecnoglass, Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass, serving multi-family, single-family, and commercial end markets [2] - The company is the second largest glass fabricator in the U.S. and the number one architectural glass transformation company in Latin America [2] - Tecnoglass operates a 5.8 million square foot manufacturing complex in Barranquilla, Colombia, providing access to nearly 1,000 customers across North, Central, and South America, with 95% of total revenues coming from the U.S. [2] Recent Financial Announcement - The Board of Directors has declared a quarterly dividend of $0.15 per share, which annualizes to $0.60 per share for the second quarter of 2025 [1] - Shareholders of record as of June 30, 2025, will receive the dividend payment on July 31, 2025 [1] Notable Projects - Tecnoglass' products are featured in prominent properties such as One Thousand Museum (Miami), Salesforce Tower (San Francisco), and Aeropuerto Internacional El Dorado (Bogotá) [2]

Group 1 - Tecnoglass Inc. (NYSE: TGLS) experienced volume recovery in the single-family residential sector and achieved solid double-digit topline growth in Q1 2025 [1] - The growth trend is expected to continue due to a favorable demand environment [1] Group 2 - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] - The analysis combines financial examination with narrative storytelling to provide insights into company performance and market understanding [1]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Tecnoglass (TGLS) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market [3] Group 2: Tecnoglass Performance Metrics - TGLS shares have increased by 10.94% over the past week, significantly outperforming the Zacks Building Products - Retail industry, which rose by only 0.28% [5] - Over the past quarter, TGLS shares have gained 18.89%, and over the last year, they have increased by 57.52%, while the S&P 500 has moved -2.89% and 12.85% respectively [6] - The average 20-day trading volume for TGLS is 392,172 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, two earnings estimates for TGLS have been revised upwards, raising the consensus estimate from $4.05 to $4.14 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [9] Group 4: Conclusion - TGLS is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Part I. Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2025, including the balance sheets, statements of operations, cash flows, shareholders' equity, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$1.14 billion** from **$1.02 billion** at year-end 2024, with total liabilities rising to **$453.2 million** and shareholders' equity growing to **$685.1 million**, driven by growth in cash, receivables, and property, plant, and equipment Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $636,761 | $560,010 | | **Total Assets** | **$1,138,289** | **$1,016,648** | | **Total Current Liabilities** | $329,079 | $265,826 | | **Total Liabilities** | **$453,152** | **$385,465** | | **Total Shareholders' Equity** | **$685,137** | **$631,183** | [Condensed Consolidated Statements of Operations and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income) For the three months ended March 31, 2025, total operating revenues increased **15.4%** year-over-year to **$222.3 million**, with net income growing **42.0%** to **$42.2 million** and diluted EPS rising to **$0.90** from **$0.63** Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $222,288 | $192,627 | +15.4% | | Gross Profit | $97,525 | $74,660 | +30.6% | | Operating Income | $59,329 | $41,022 | +44.6% | | Net Income | $42,189 | $29,730 | +42.0% | | Diluted EPS | $0.90 | $0.63 | +42.9% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities increased to **$46.9 million**, while investing activities used **$18.2 million** and financing activities used **$7.4 million**, resulting in a **$22.4 million** increase in cash and cash equivalents, ending the period at **$157.3 million** Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $46,898 | $33,447 | | Cash Used in Investing Activities | ($18,190) | ($10,192) | | Cash Used in Financing Activities | ($7,437) | ($16,686) | | **Net Increase in Cash** | **$22,420** | **$6,373** | | **Cash and Cash Equivalents - End of Period** | **$157,302** | **$135,881** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial statement line items, highlighting strong U.S. market and residential sector revenue growth, **$775.0 million** in remaining performance obligations, a **$110 million** Senior Secured Credit Facility, and related party transactions including a joint venture with Saint-Gobain - The company operates as a single reporting segment: Architectural Glass and Windows[25](index=25&type=chunk) Revenue by Geography (Q1 2025 vs Q1 2024, in thousands) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $212,454 | $184,003 | | Colombia | $6,414 | $5,239 | | Other | $3,420 | $3,385 | | **Total Revenues** | **$222,288** | **$192,627** | Revenue by Market (Q1 2025 vs Q1 2024, in thousands) | Market | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Commercial | $133,359 | $119,473 | | Residential | $88,929 | $73,154 | | **Total Revenues** | **$222,288** | **$192,627** | - As of March 31, 2025, the company had **$775.0 million** of remaining performance obligations (backlog), which it expects to recognize as revenue over the next three years[41](index=41&type=chunk) - On March 12, 2025, the company declared a quarterly dividend of **$0.15 per share**, paid on April 30, 2025[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong Q1 2025 performance, driven by robust U.S. market activity, resulted in a **15.4%** YoY revenue increase to **$222.3 million**, gross margin expansion to **43.9%**, and a strong liquidity position of **$157.3 million** in cash - Revenue growth in Q1 2025 was driven by a **15.5%** increase in the U.S. market, with residential revenues up **21.6%** and commercial revenues up **11.6%** year-over-year[91](index=91&type=chunk) - Gross profit margin increased to **43.9%** in Q1 2025 from **38.8%** in Q1 2024, primarily due to better pricing, improved operating leverage, and a favorable FX impact from the Colombian peso's depreciation[92](index=92&type=chunk) - Operating expenses rose by **26.3%**, mainly due to a **$4.7 million** expense from recent U.S. tariffs on imports and costs associated with geographic expansion[93](index=93&type=chunk) - The company ended Q1 2025 with **$157.3 million** in cash and cash equivalents and has approximately **$175.0 million** available under credit lines[100](index=100&type=chunk) - Capital expenditures in Q1 2025 were **$30.4 million**, focused on automating production lines and expanding facilities to support a manufacturing operating capacity of approximately **$1.2 billion**[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from foreign currency exchange rates, particularly the Colombian Peso, and aluminum price volatility, with a hypothetical **5%** COP appreciation potentially decreasing net earnings by **$2.1 million**, while interest rate risk remains minimal due to debt management and hedging - The company is subject to foreign currency risk as approximately **25%** of revenues and **3%** of costs are in Colombian pesos. A hypothetical **5%** appreciation of the COP against the USD would result in a **$2.1 million** decrease in net earnings based on Q1 2025 results[110](index=110&type=chunk) - The company faces market risk from volatile aluminum prices, a principal raw material. It attempts to mitigate this by aligning the cost of raw materials with selling prices[113](index=113&type=chunk) - Interest rate risk is not significant for the company's cost of financing due to recent debt repayments and the use of interest rate hedging instruments[108](index=108&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in the company's internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[115](index=115&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[116](index=116&type=chunk) Part II. Other Information [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters that arise in the ordinary course of business. Management currently believes these matters are not material and will not have a material adverse effect on the company's financial condition or results of operations - The company is involved in legal matters arising in the ordinary course of business, and management does not expect them to have a material adverse effect[118](index=118&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor involves a universal **10%** U.S. tariff on imports, effective April 5, 2025, which could materially impact production costs and price competitiveness, especially given that **96%** of the company's 2024 sales were in the U.S. - A new risk factor has been identified related to a universal **10%** U.S. tariff imposed on imports from all countries, including Colombia, effective April 2025[119](index=119&type=chunk) - Given that the company's manufacturing is in Colombia and **96%** of its FY2024 sales were in the U.S., these tariffs could materially impact production costs, supply chain, and price competitiveness[120](index=120&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **1,610** ordinary shares at an average price of **$76.93 per share**, with approximately **$76.5 million** remaining available for future repurchases under the authorized program as of March 31, 2025 Share Repurchase Activity for Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | - | - | | Feb 2025 | - | - | | Mar 2025 | 1,610 | $76.93 | | **Total** | **1,610** | **$76.93** | - As of March 31, 2025, **$76,527,637** remained available for repurchase under the company's share repurchase program[122](index=122&type=chunk) [Other Information](index=30&type=section&id=Item%205.%20Other%20Information) For the three months ended March 31, 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025[123](index=123&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications under the Sarbanes-Oxley Act (Sections 302 and 906) and the financial statements formatted in XBRL - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[124](index=124&type=chunk) - Financial statements are provided in Inline XBRL format as required[124](index=124&type=chunk) Signatures - The report is signed by Jose M. Daes, Chief Executive Officer, and Santiago Giraldo, Chief Financial Officer, on May 8, 2025[128](index=128&type=chunk)