Tecnoglass Inc. (TGLS) reported fourth-quarter 2024 results, with the top and bottom lines increasing year over year. Revenues missed the Zacks Consensus Estimate, while earnings beat the same.Management attributed the strong performance in 2024 to market share gains in single-family residential, robust multi-family/commercial demand and the efficiencies of Tecnoglass’ vertically integrated business model. Investments in automation and capacity enhancements drove operational improvements, allowing the compa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 001-35436 TECNOGLASS INC. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands 98-1271120 Non ...

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 5.6 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 Raymond James 2025 Institutional Investors Conference in Orlando, FL on March 4, 2025 [1]

Financial Data and Key Metrics Changes - Tecnoglass reported record revenues of $890 million for the full year 2024, reflecting a 6.8% increase year-over-year [6][25] - Adjusted EBITDA for Q4 2024 increased by 27.9% year-over-year to $79.2 million, with a margin of 33.1% [26] - Full-year gross profit totaled $380 million, representing a gross margin of 42.7% [27] Business Line Data and Key Metrics Changes - Single-family residential revenues reached an all-time high of $372 million, driven by market share gains and geographic expansion [7][21] - Multifamily and commercial business revenues grew to a record $518 million, reflecting strong execution of the expanding backlog [7][14] - The backlog reached an all-time high of $1.1 billion, representing a 28% year-over-year increase [15] Market Data and Key Metrics Changes - The company is focusing on states projected to capture significant construction spending growth, particularly Florida and Texas, which are expected to account for nearly 30% of all construction starts through 2029 [23] - Federal infrastructure spending is providing additional support for growth in key markets [23] Company Strategy and Development Direction - Tecnoglass is committed to geographic expansion and innovation, particularly in the vinyl window market, which is expected to double revenues compared to the previous year [46][32] - The company is investing in automation and manufacturing capacity to improve operational efficiencies and meet growing demand [8][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and visibility into 2026 and beyond, supported by a strong backlog and market leadership [11] - The company anticipates continued growth in single-family residential revenues and improved activity in short-term commercial projects [37] Other Important Information - The company ended the year with a net cash position and significant liquidity, maintaining a cash balance of $135 million [35] - Capital expenditures for 2025 are projected to be in the range of $65 to $70 million, focusing on efficiency initiatives and new showrooms [41] Q&A Session Summary Question: Can you talk about the expected cadence of vinyl revenues? - Management expects vinyl revenues to keep growing, potentially doubling from last year [46] Question: What is the potential for capacity expansion in 2025? - Current capacity utilization is at 65% to 70%, with investments in automation to improve efficiency [48] Question: How is the single-family market performing in early 2025? - The beginning of 2025 has shown extraordinary growth in the single-family market compared to previous months [53] Question: What impact will the proposed aluminum tariffs have? - The potential impact is estimated at about $25 million per year, primarily affecting aluminum components [68] Question: Has there been any change in competitor behavior in Florida? - Management has heard rumors but has not seen significant changes; the company continues to receive strong orders [77]

Fourth Quarter and Full Year 2024 Earnings Conference Call Feb 27, 2025 – TECNOGLASS INC. (NYSE: TGLS) www.tecnoglass.com Disclaimer 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 chang ...

Core Insights - Tecnoglass (TGLS) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $1.01 per share, and up from $0.80 per share a year ago, representing an earnings surprise of 3.96% [1] - The company posted revenues of $239.57 million for the quarter ended December 2024, which was slightly below the Zacks Consensus Estimate by 0.59%, but an increase from $194.6 million year-over-year [2] - Tecnoglass has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] Earnings Outlook - The sustainability of Tecnoglass's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $204 million, and for the current fiscal year, it is $4.18 on revenues of $953 million [7] Industry Context - The Building Products - Retail industry, to which Tecnoglass belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Tecnoglass's performance [5][6]

Financial Performance - Full Year Revenues increased 6.8% to a record $890.2 million, driven by organic growth and geographical expansion [2] - Full Year Net Income was $161.3 million, or $3.43 per diluted share, with Adjusted Net Income of $171.6 million, or $3.65 per diluted share [2] - Fourth Quarter Revenues rose 23.1% to a record $239.6 million, with Multi-family/commercial revenues growing 24.3% year-over-year [5] - Adjusted EBITDA for the full year was $275.8 million, representing 31.0% of total revenues, compared to 36.5% in the prior year [12] - Gross profit for the full year was $380 million, representing a 42.7% gross margin [12] - Net income for the year ended December 31, 2024, was $161.3 million, down from $183.5 million in 2023, representing a decline of 12.1% [26] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $275,814 thousand, down from $304,117 thousand in 2023, reflecting a decrease of 9.3% [35] - The company reported a net loss income of $161,309 thousand for the twelve months ended December 31, 2024, compared to a net loss of $183,510 thousand in 2023, showing an improvement of 12.1% [35] Cash Flow and Liquidity - Cash provided by operating activities for the full year was $170.5 million, with a net cash position at year-end [15] - The Company ended 2024 with total liquidity of approximately $305.0 million, including $134.9 million in cash [15] - Cash provided by operating activities for the year ended December 31, 2024, was $170.5 million, an increase from $138.8 million in 2023 [28] - Cash at the end of the period on December 31, 2024, was $134.9 million, slightly up from $129.5 million at the end of 2023 [28] Shareholder Returns - The Company returned $19.7 million to shareholders through dividend payments during the year [2] - Basic income per share for Q4 2024 was $1.00, compared to $0.77 in Q4 2023, indicating a growth of 29.9% [35] - The diluted adjusted net income per share for Q4 2024 was $1.05, compared to $0.80 in Q4 2023, reflecting a growth of 31.3% [35] Backlog and Future Outlook - The backlog expanded 27.6% year-over-year to a record $1.1 billion, providing visibility into 2026 [2] - Full Year 2025 Outlook projects 10% revenue growth and 16% Adjusted EBITDA growth at the midpoint of guidance [3] Assets and Liabilities - Total assets as of December 31, 2024, reached $1.02 billion, up from $962.7 million in 2023, marking a growth of 5.6% [24] - Total liabilities decreased to $385.5 million as of December 31, 2024, from $414.7 million in 2023, a reduction of 7.0% [24] Foreign Currency Impact - The company experienced a foreign currency translation adjustment loss of $53.2 million for the year ended December 31, 2024, compared to a gain of $63.1 million in 2023 [26] - Foreign currency transaction losses for the twelve months ended December 31, 2024, were $5,665 thousand, compared to a gain of $686 thousand in 2023, indicating a negative shift [35] Other Financial Metrics - Interest expense decreased to $1,510 thousand in Q4 2024 from $2,259 thousand in Q4 2023, a reduction of 33.0% [35] - The provision for bad debt for the twelve months ended December 31, 2024, was $857 thousand, significantly lower than $2,809 thousand in 2023, a decrease of 69.5% [35] - The company incurred non-recurring expenses of $5,462 thousand for the twelve months ended December 31, 2024, slightly down from $6,494 thousand in 2023, a decrease of 15.9% [35]

Core Insights - Tecnoglass, Inc. reported a record revenue of $890.2 million for the full year 2024, reflecting a 6.8% increase driven by organic growth and geographical expansion [11][12] - The company achieved a net income of $161.3 million, or $3.43 per diluted share, with an adjusted net income of $171.6 million, or $3.65 per diluted share [12][9] - The company has introduced a 2025 outlook projecting a 10% revenue growth and a 16% adjusted EBITDA growth at the midpoint of guidance [2][16] Financial Performance - Full year single-family residential revenue grew to a record $372.1 million, up 10.9% year-over-year [11] - Full year adjusted EBITDA was $275.8 million, representing 31.0% of revenues [12] - Gross profit for the full year was $380 million, with a gross margin of 42.7% [12] Quarterly Results - Total revenues for the fourth quarter of 2024 increased 23.1% to a record $239.6 million compared to $194.6 million in the prior year quarter [5] - Net income for the fourth quarter was $47.0 million, or $1.00 per diluted share, compared to $36.3 million, or $0.77 per diluted share, in the prior year quarter [8] - Adjusted EBITDA for the fourth quarter was $79.2 million, or 33.1% of total revenues, compared to $62.0 million, or 31.8% of total revenues, in the prior year quarter [10] Operational Highlights - The company achieved an all-time high cash flow from operations of $170.5 million for the full year, representing 61.8% of adjusted EBITDA [13] - The backlog expanded 27.6% year-over-year to a record $1.1 billion, providing visibility into future revenues [11][3] - The company maintained a net cash position at year-end and paid down $65 million in debt throughout 2024 [15][12] Market Outlook - The company anticipates continued momentum in its vinyl-related revenues and stable activity in short-term commercial projects [16] - The 2025 outlook assumes stable Colombian peso exchange rates and plans to offset potential headwinds from higher installation revenues and salary increases through pricing actions and operational efficiencies [16] - The company is mindful of potential industry-wide risks associated with proposed U.S. tariffs on aluminum imports but has identified actions to mitigate negative impacts [3]

Core Viewpoint - Tecnoglass, Inc. is set to release its financial results for Q4 and full year 2024 on February 27, 2025, with a conference call scheduled for the same day to discuss the results [1]. Group 1: Financial Results Announcement - The financial results will be released before the market opens on February 27, 2025 [1]. - A webcast and conference call will take place at 10:00 a.m. Eastern time on the same day to review the results [1]. Group 2: Conference Call Details - The conference call will be available live over the Internet, accompanied by a slide presentation [2]. - Participants can access the call by visiting Tecnoglass' website and registering at least 15 minutes in advance [2]. - For those unable to access the webcast, a telephonic option is available by dialing specific numbers for domestic and international calls [2]. Group 3: Company Overview - Tecnoglass is a leading producer of high-end aluminum and vinyl windows and architectural glass, primarily serving the residential and commercial markets [4]. - The company is the second largest glass fabricator in the U.S. and the top architectural glass transformation company in Latin America [4]. - Tecnoglass operates a 5.6 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. [4].

Group 1 - Tecnoglass (TGLS) has returned 72.4% year-to-date, significantly outperforming the average gain of 29.4% in the Retail-Wholesale sector [4] - The Zacks Rank for Tecnoglass is 2 (Buy), indicating a positive analyst sentiment and a stronger earnings outlook, with a 3.8% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Tecnoglass belongs to the Building Products - Retail industry, which has an average gain of 8.6% this year, further highlighting its strong performance relative to its peers [5] Group 2 - Urban Outfitters (URBN) has also outperformed the Retail-Wholesale sector with a year-to-date return of 48.6% and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Retail-Wholesale sector includes 212 individual stocks and currently holds a Zacks Sector Rank of 8, indicating its relative performance among 16 different groups [2] - The Retail - Apparel and Shoes industry, to which Urban Outfitters belongs, has gained 36.8% this year, ranking 123 among industries [6]