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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] 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 Baird 2025 Global Industrial Conference in Chicago, IL on November 12, 2025 [1]

Revenue and Profitability - Operating revenues increased by $22.2 million, or 9.3%, from $238.3 million in Q3 2024 to $260.5 million in Q3 2025, driven by strong activity in the U.S. market[113] - Gross profit rose by $2.1 million, or 1.9%, from $109.2 million in Q3 2024 to $111.3 million in Q3 2025, with a gross profit margin of 42.7%[114] - The company has a strong backlog and revenue growth, particularly in the U.S. commercial market, which grew by 12.3% year over year[113] - Operating revenues for the nine months ended September 30, 2025, were $738.3 million, an increase of $87.7 million or 13.5% year over year compared to $650.6 million in 2024[126] - Gross profit for the nine months ended September 30, 2025, was $323.2 million, an increase of $49.7 million or 18.2% from $273.5 million in 2024, with a gross profit margin rising to 43.8% from 42.0%[128] - The company recorded a net income of $133.5 million for the nine months ended September 30, 2025, compared to $114.3 million in 2024[139] Operating Expenses - Operating expenses increased by $5.8 million, or 13.9%, from $41.5 million in Q3 2024 to $47.3 million in Q3 2025, primarily due to recent tariffs on imports into the U.S.[116] - Operating expenses increased by $29.3 million or 25.8% to $142.9 million for the nine months ended September 30, 2025, primarily due to tariffs and administrative salary adjustments[129] Cash Flow and Investments - Cash flow from operating activities was approximately $104.7 million for the nine months ended September 30, 2025, down from $109.4 million in 2024[146] - The company made capital investments of $86.4 million during the nine months ended September 30, 2025, compared to $59.5 million in 2024, including $15 million for real estate in South Florida[142] Debt and Financing - A loss on extinguishment of debt of $1.354 million was recognized due to the transition to a new Senior Secured Credit Facility, which increased borrowing capacity from $150 million to $500 million[121] - Interest expense increased by $0.4 million, or 19.4%, to $2.2 million in Q3 2025, reflecting changes in hedge accounting following the new credit facility[122] - The new Senior Secured Credit Facility increased total committed borrowing capacity from $150 million to $500 million, reducing borrowing costs by approximately 25 basis points[133] Foreign Currency and Market Risks - The company recorded a foreign currency transaction gain of $1.9 million in Q3 2025, compared to a gain of $0.9 million in Q3 2024[119] - Colombian subsidiaries have US Dollar denominated monetary liabilities exceeding monetary assets by $40.1 million, leading to a potential loss of $0.4 million from a 1% devaluation of the Colombian peso[153] - Approximately 3% of consolidated revenues and 25% of costs and expenses are incurred in Colombian pesos, which mitigates some foreign exchange risk[151] - A 5% appreciation of the Colombian peso relative to the US Dollar would increase revenues by $1.1 million and costs by approximately $8.2 million, resulting in a $7.1 million decrease in net earnings[151] - The company is exposed to market risk from volatility in aluminum prices, a principal raw material, influenced by various uncontrollable factors[155] - The impact of a 1% change in commodity costs on results of operations cannot be accurately estimated due to its effect on both material costs and selling prices[156] - Currency translation adjustments from foreign subsidiaries are recorded in other comprehensive income on the consolidated financial statements[154] - The company has mitigated interest rate risk through recent repayments, with only an immaterial portion of debt exposed to market risk[151] - The company records non-cash foreign currency transaction gains and losses from intercompany loans as other comprehensive income[153] - Commodity pricing is based on the London Metals Exchange plus a manufacturing premium to align raw material costs with selling prices[155] - The cyclical nature of the commodities market contributes to price volatility, impacting the company's cost structure and pricing strategy[155] Strategic Initiatives - The company aims to expand its presence in the U.S. outside of Florida and has launched a residential window offering to generate additional organic growth[110]

Core Insights - Tecnoglass reported third-quarter 2025 financial results that missed Wall Street expectations for both revenue and earnings, leading to a 6.1% drop in shares [1] - The company posted quarterly revenue of $260.5 million, a 9.3% increase from the prior year, but fell short of analyst forecasts [1] - Adjusted earnings were $1.00 per share, below the expected $1.11 per share and down from $1.08 in the same quarter last year [1] - Tecnoglass lowered its full-year revenue guidance, which is now below analysts' estimates, overshadowing the revenue growth [1] Market Reaction - Tecnoglass shares are volatile, with 12 moves greater than 5% over the last year, indicating that the market considers the recent news significant but not fundamentally altering its perception of the business [3] - The broader market is experiencing caution, as evidenced by the tech-heavy Nasdaq falling approximately 1.4%, with investors engaging in profit-taking due to concerns over high valuations following an AI-driven rally [4] - Leadership at Goldman Sachs and Morgan Stanley has indicated the possibility of a correction in equity markets over the next couple of years, viewing this cooling-off period as a healthy feature of a long-term bull market [4]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 reached a record $260.5 million, up 9.3% year over year, driven by strong organic growth in both single-family residential and multi-family commercial businesses [4][12] - Adjusted EBITDA for Q3 2025 was $79.1 million, representing an adjusted EBITDA margin of 30.4%, compared to $81.4 million and a 34.2% margin in the prior year [12][13] - Gross profit was $111.3 million, with a gross margin of 42.7%, down from a gross profit of $109.2 million and a 45.8% margin in the prior year [12][13] Business Line Data and Key Metrics Changes - Single-family residential revenue grew 3.4% year over year to a record $113.5 million, benefiting from pricing initiatives and market share gains [4][9] - Multi-family and commercial business revenue increased 14.3% year over year to a record $147 million, reflecting market share gains and project execution [5][8] - The backlog reached a record $1.3 billion, up over 20% year over year, indicating strong demand and project pipeline [5][8] Market Data and Key Metrics Changes - The company reported a healthy book-to-bill ratio of 1.3x for Q3, maintaining a ratio above 1.1x for 19 consecutive quarters [8] - The composition of the backlog has shifted towards high-end, large-sized projects, which are less sensitive to interest rate fluctuations [8][9] Company Strategy and Development Direction - The company is focused on geographic expansion and product diversification, with plans for a new fully automated facility in Florida to enhance manufacturing capabilities [10][11] - The board authorized an expansion of the share repurchase program to $150 million, reflecting confidence in the business and commitment to balanced capital allocation [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver exceptional shareholder value, supported by a strong balance sheet and record backlog [6][20] - The updated full-year 2025 financial guidance anticipates revenues in the range of $970 million to $990 million, reflecting approximately 10% growth at the midpoint [18][19] Other Important Information - The company generated operating cash flow of $40 million in Q3, driven by strong profitability and efficient working capital management [15][16] - Capital expenditures for the quarter were $18.8 million, with expectations for moderation through year-end [15][16] Q&A Session Summary Question: Context around 2026 double-digit growth visibility - Management highlighted a record backlog providing visibility, especially for larger projects, and growth driven by geographical expansion and vinyl product ramp-up [24] Question: Trends in aluminum costs and FX impacts - Management noted a significant increase in aluminum prices and U.S. aluminum premiums, with expectations for normalization as demand subsides [25][26] Question: Update on the vinyl business performance - The company expects vinyl business to grow significantly in 2026, with a complete product line and new dealer partnerships [28] Question: Pricing and tariff costs for 2026 - Management indicated that pricing adjustments have been implemented, and gross margins are expected to maintain a low to mid-40% range [33][34] Question: Capacity and CapEx for the new U.S. facility - The projected total cost for the new facility is around $350 million to $400 million, with a multi-year investment timeline [35][39] Question: Impact of slower invoicing in light commercial construction - Management estimated a $20 million reduction in revenue guidance, with half expected to shift to 2026 [43] Question: Market conditions for high-end space and backlog growth - The company is expanding geographically and capturing market share, particularly in Florida and other states [55]

Third Quarter 2025 Earnings Conference Call November 6, 2025 – TECNOGLASS INC. (NYSE: TGLS) FORWARD LOOKING STATEMENTS This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may v ...

Core Insights - Tecnoglass reported quarterly earnings of $1 per share, missing the Zacks Consensus Estimate of $1.11 per share, representing an earnings surprise of -9.91% [1] - The company posted revenues of $260.48 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.81% [2] - Tecnoglass shares have declined approximately 29.4% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Performance - Over the last four quarters, Tecnoglass has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $1.13, with expected revenues of $261.43 million [7] Market Outlook - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Building Products - Retail industry is ranked in the bottom 26% of over 250 Zacks industries, which may impact Tecnoglass's stock performance [8]

Financial Performance - Record quarterly revenue of $260.5 million, up 9.3% year-over-year, driven by 7.6% organic growth[1] - Net income of $47.2 million, or $1.01 per diluted share, marking the second most profitable quarter in the company's history[1] - Adjusted EBITDA of $79.1 million, representing 30.4% of total revenues[1] - Total operating revenues for the three months ended September 30, 2025, increased by 9.3% to $260,479,000 compared to $238,327,000 in the same period of 2024[24] - Gross profit for the nine months ended September 30, 2025, rose to $323,180,000, up from $273,470,000 in 2024, reflecting a significant increase of 18.2%[24] - Net income for the nine months ended September 30, 2025, was $133,460,000, representing a 16.8% increase from $114,293,000 in the same period of 2024[24] - The company’s total revenues for the nine months ended September 30, 2025, were $738,313 million, representing a 13.5% increase from $650,608 million in the same period of 2024[30] Guidance and Future Outlook - Full year 2025 revenue guidance updated to a range of $970 million to $990 million, reflecting approximately 10% growth at the midpoint[14] - Backlog expanded 21.4% year-over-year to a record $1.3 billion, providing strong visibility into future revenues[1] Expenses and Costs - SG&A expenses increased to $47.3 million, or 18.2% of total revenues, partly due to $3.1 million in aluminum tariffs[5] - The company incurred non-recurring expenses of $1,383 million for the three months ended September 30, 2025, slightly down from $1,449 million in the same period of 2024[33] - Interest expense and deferred cost of financing for the three months ended September 30, 2025, was $1,686 million, a slight decrease from $1,742 million in the same period of 2024[33] Cash Flow and Liquidity - Total liquidity of approximately $550 million, including $124 million in cash and cash equivalents[12] - Cash provided by operating activities for the nine months ended September 30, 2025, was $104,746,000, slightly down from $109,406,000 in 2024[26] - Free cash flow for the three months ended September 30, 2025, was $21,231 million, up from $17,774 million in the same period of 2024[37] - Cash and cash equivalents at the end of the period were $123,991,000, down from $134,882,000 at the beginning of the period, a decrease of 8.8%[26] Shareholder Returns - Company repurchased $30 million in shares and paid $7 million in dividends during the quarter[10] - Expansion of share repurchase program to $150 million, reflecting confidence in cash flow generation and balance sheet management[11] Assets and Liabilities - Total assets increased to $1,228,077,000 as of September 30, 2025, compared to $1,016,648,000 at the end of 2024, marking a growth of 20.8%[22] - Total liabilities rose to $464,110,000 as of September 30, 2025, up from $385,465,000 at the end of 2024, indicating an increase of 20.5%[22] Inventory and Revenue Sources - Inventories increased to $194,404,000 as of September 30, 2025, from $139,642,000 at the end of 2024, reflecting a rise of 39.2%[22] - The company reported a 12.8% increase in revenues from the United States for the nine months ended September 30, 2025, totaling $701,189,000 compared to $621,897,000 in 2024[28] Earnings Per Share - The company’s basic income per share for the nine months ended September 30, 2025, was $2.84, compared to $2.43 in the same period of 2024, an increase of 16.9%[24] - Basic income per share for the three months ended September 30, 2025, was $1.01, compared to $1.05 in the same period of 2024[33] Foreign Currency and Other Losses - The company reported a foreign currency transaction loss of $1,865 million for the three months ended September 30, 2025, compared to a loss of $870 million in the same period of 2024[33]

Core Insights - The company reported record quarterly revenue of $260.5 million, reflecting a 9.3% year-over-year increase driven by 7.6% organic growth [1][4] - Net income reached $47.2 million, or $1.01 per diluted share, marking the second most profitable quarter in the company's history [1][8] - The company announced an expansion of its share repurchase program to $150 million, supported by a strong balance sheet and total liquidity of $550 million [1][13][14] Financial Performance - Total revenues for Q3 2025 increased by 9.3% compared to Q3 2024, with multi-family/commercial revenues growing by 14.3% and single-family residential revenues increasing by 3.4% [4][5] - Gross profit for the quarter was $111.3 million, representing a gross margin of 42.7%, down from 45.8% in the prior year due to unfavorable revenue mix and higher raw material costs [6] - Adjusted EBITDA was $79.1 million, or 30.4% of total revenues, compared to $81.4 million, or 34.2% of total revenues, in the prior year [10] Capital Allocation and Shareholder Returns - The company returned $30 million in share repurchases and $7 million in dividends during the quarter, demonstrating a commitment to returning capital to shareholders [12] - The company ended the quarter with total liquidity of approximately $550 million, including $124 million in cash and cash equivalents [14] Growth Outlook - The company updated its full-year 2025 financial guidance, expecting revenues to be in the range of $970 million to $990 million, reflecting approximately 10% growth at the midpoint [16] - The backlog expanded by 21.4% year-over-year to a record $1.3 billion, providing strong visibility into future revenue streams [1][3] Strategic Initiatives - The company is advancing its feasibility study for a new fully automated facility in Florida, aimed at addressing future growth needs and enhancing operational efficiency [15] - The opening of a California showroom is part of the company's West Coast expansion strategy, which is already showing positive order momentum [3]

Core Viewpoint - Tecnoglass, Inc. is set to release its financial results for the third quarter of 2025 on November 6, 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 revenue 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]. Conference Call Details - The conference call will be available via webcast and will include a slide presentation [2]. - Participants can join the call by visiting the Investors section of Tecnoglass' website or by dialing in using provided domestic and international numbers [2]. - A telephonic replay of the conference call will be accessible until December 6, 2025, using a specific passcode [3].