We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. Tecnoglass Inc. is one of them. Tecnoglass Inc. (NYSE:TGLS), a leading manufacturer of high-end aluminum and vinyl windows and architectural glass, continues to demonstrate strong financial performance and investor confidence as of September 2025. The company recently dismissed allegations by a short seller, calling the claims false and misleading, and reaffirmed its raised full-year 2025 financial guidance, signaling robust profi ...

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 efficient access to nearly 1,000 customers across North, Central, and South America, with 95% of total revenues coming from the U.S. [2] Recent Developments - Tecnoglass announced its participation in the D.A. Davidson 24th Annual Diversified Industrials & Services Conference in Nashville, TN, scheduled for September 18, 2025 [1]

Miami, FL, Sept. 11, 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 announced that its Board of Directors has declared a quarterly dividend of $0.15 per share, or $0.60 per share on an annualized basis, for the third quarter of 2025. Shareholders of record as of the close of business on September 30, 2025 will be paid a divide ...

Core Points - Tecnoglass Inc. has filed a federal defamation lawsuit against short seller Christian Lamarco and his firm Culper Research for allegedly publishing false claims linking the company to the Sinaloa cartel [1][2][3] - The lawsuit claims that Culper Research profited from short positions by spreading fabricated allegations based on inauthentic intelligence documents confirmed by the Mexican government [2] - The complaint highlights that this is not the first instance of defamation suits against Lamarco and Culper Research, and it seeks damages, attorneys' fees, and an injunction for the removal of the defamatory statements [3]

Core Insights - Tecnoglass, Inc. has amended its senior secured revolving credit facility, increasing the borrowing capacity from $150 million to $500 million, which provides significant financial flexibility for growth and capital allocation [1][2] - The company has reduced all-in borrowing costs by approximately 25 basis points across all pricing tiers while extending the maturity date to the end of 2030 [1][2] - The net debt to adjusted EBITDA ratio remains at an all-time low of -0.09x, indicating a strong balance sheet [1] - The increased facility received overwhelming support from a premier U.S. banking syndicate, demonstrating strong institutional confidence in the company's ongoing growth and strategic direction [1][2] Financial Flexibility - The expansion of the committed facility by over three times to $500 million, along with a five-year maturity extension, provides strong financial flexibility to capitalize on growth opportunities, particularly in U.S. expansion efforts [2] - The facility will now bear interest at the Secured Overnight Financing Rate (SOFR) with no floor plus a spread of 1.25%, compared to a prior spread of 1.50% [1] Company Overview - Tecnoglass is a leading producer of high-end aluminum and vinyl windows and architectural glass, serving multi-family, single-family, and commercial end markets [4] - The company is the second largest glass fabricator serving the U.S. and the number one architectural glass transformation company in Latin America [4] - Tecnoglass operates a 5.8 million square foot manufacturing complex in Barranquilla, Colombia, providing efficient access to nearly 1,000 customers across North, Central, and South America, with the U.S. accounting for 95% of total revenues [4]

Core Viewpoint - Tecnoglass, Inc. categorically rejects allegations made in a short seller report, asserting they are false and misleading, and believes the report aims to manipulate the market and harm shareholders [2][3] Company Response - The company emphasizes its commitment to ethical conduct, transparency, and sound corporate governance, and is considering legal action against those responsible for the report [3] - Tecnoglass will continue to cooperate with regulators and stakeholders, focusing on long-term value creation for customers and shareholders [3] Financial Guidance - Tecnoglass reaffirms its recently increased full year 2025 financial guidance, reflecting strong performance in the first half of 2025 and confidence in continued profitability and cash generation [4] - The company highlights its active share repurchase program, indicating management's belief that the current market price does not reflect the company's fundamentals and growth outlook [5] Company Overview - Tecnoglass is a leading producer of high-end aluminum and vinyl windows and architectural glass, serving residential and commercial markets, and is the second largest glass fabricator in the U.S. [6] - The company operates a 5.8 million square foot manufacturing complex in Barranquilla, Colombia, serving nearly 1,000 customers across North, Central, and South America, with 95% of revenues coming from the U.S. [6]

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 efficient access to nearly 1,000 customers across North, Central, and South America, with 95% of total revenues coming from the U.S. [2] Product and Market Presence - The company's high-end products are featured in notable properties such as One Thousand Museum in Miami, Salesforce Tower in San Francisco, and Aeropuerto Internacional El Dorado in Bogotá [2] - Tecnoglass has established a strong market presence in the architectural glass sector, particularly in the U.S. and Latin America [2] Upcoming Events - Tecnoglass will attend the virtual Raymond James Industrial Showcase on August 14, 2025 [1]

[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]

Core Insights - Tecnoglass reported revenue of $255.55 million for the quarter ended June 2025, reflecting a year-over-year increase of 16.3% [1] - The company's EPS was $1.03, up from $0.86 in the same quarter last year, exceeding the consensus EPS estimate of $0.95 by 8.42% [1] - The revenue surpassed the Zacks Consensus Estimate of $245.57 million, resulting in a surprise of 4.06% [1] Financial Performance - Tecnoglass achieved a revenue of $242.21 million from the United States, exceeding the two-analyst average estimate of $234.65 million [4] - Revenue from other geographic regions was reported at $6.72 million, significantly higher than the estimated $3.75 million, marking a 62.9% increase year-over-year [4] - Revenue from Colombia was $6.62 million, surpassing the average estimate of $5.3 million, with a year-over-year growth of 13.5% [4] Market Performance - Shares of Tecnoglass have returned 1.9% over the past month, outperforming the Zacks S&P 500 composite's return of 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]