Tecnoglass — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues reached a record $295.3 million for the quarter, a 15.6% year-over-year increase from $255.5 million; foreign currency exchange rates provided a $0.9 million benefit.
• Multi-family/commercial revenues grew 15.7% year-over-year to $168.8 million, while single-family residential revenues grew 15.4% year-over-year to $126.5 million.
• Gross profit was $110.0 million with a 37.3% gross margin, down from $114.3 million and 44.7% in the prior year quarter.
• Year-over-year margin compression was driven by a 77% increase in average all-in U.S. aluminum prices, a 14% appreciation of the Colombian Peso, higher labor costs in Colombia, and $0.7 million in severance costs.
• Selling, general and administrative (SG&A) expenses increased to $73.5 million (24.9% of revenue) from $53.1 million (20.8% of revenue), primarily due to $17.0 million in Section 232 tariff expenses and higher transportation/commission costs.
• Net income was $24.6 million ($0.55 per diluted share), compared to $44.1 million ($0.94 per diluted share) in the prior year quarter.
• Adjusted net income was $23.8 million ($0.54 per diluted share), compared to $48.5 million ($1.03 per diluted share) in the prior year quarter.
• Adjusted EBITDA was $51.7 million (17.5% of revenue), down from $79.8 million (31.2% of revenue) in the prior year quarter.
• Cash provided by operating activities was approximately $4.4 million for the quarter.
• Capital expenditures totaled approximately $35.4 million for the quarter.
• Total liquidity was $360.0 million, comprising $80.8 million in cash and cash equivalents and $280.0 million available under revolving credit facilities.
• Total debt was $225.4 million, resulting in a net debt to LTM Adjusted EBITDA leverage ratio of approximately 0.6x.

Guidance and Future Outlook

• Full year 2026 revenue guidance was narrowed to a range of $1.08 billion to $1.12 billion.
• Full year 2026 Adjusted EBITDA guidance is set at $220 million to $230 million.
• Guidance revisions reflect sustained high aluminum costs and a stronger Colombian Peso than previously assumed, rather than changes in product demand.
• Management expects pricing actions implemented in May to begin flowing into orders in the third quarter and progressively benefit results in the second half of the year.
• The company aims to fully offset the impact of tariffs in 2027 through automation savings and full-year pricing realization.
• Automation initiatives are expected to be fully operational by year-end, supporting a more optimized cost position entering 2027.

Business Segments and Product Lines

• Single-family residential revenues grew 15.4% year-over-year, driven by market share gains, geographic expansion, and orders placed ahead of May pricing actions.
• Multi-family/commercial revenues grew 15.7% year-over-year, driven by strong activity in key markets beyond Florida.
• Backlog expanded 15.6% year-over-year to a record $1.38 billion, extending a track record of sequential quarter growth since 2021.
• New showrooms, an expanding dealer network, and vinyl product lines are gaining traction, increasing the share of single-family residential revenues generated outside Florida by several hundred basis points year-to-date.
• The company completed a 10% headcount reduction as of the end of June as part of its efficiency and automation program.

Market and Competitive Landscape

• The company reported continued market share gains in both single-family residential and multi-family/commercial sectors.
• Over 95% of total revenues are generated from the United States market.
• The company is the second-largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America.
• The company is conducting a feasibility study for a potential new state-of-the-art facility in the United States and expects to complete the land purchase by the end of August 2026.
• Advanced discussions with state authorities are underway to finalize incentives for the potential U.S. facility.

Risks and Challenges

• Elevated raw material costs, specifically a 77% year-over-year increase in all-in U.S. aluminum prices, continue to pressure gross margins.
• Currency fluctuations, including a 14% appreciation of the Colombian Peso, negatively impacted financial results.
• The April enactment of Section 232 tariffs on certain aluminum-based products resulted in approximately $17.0 million in SG&A expenses for the quarter.
• Annual minimum wage adjustments in Colombia contributed to higher labor costs.
• Forward-looking statements are subject to risks including changes in economic, business, competitive, and regulatory factors.

Management Commentary and Tone

• CEO José Manuel Daes expressed confidence in the balance of the year, citing healthy demand, consistent execution, and the effectiveness of pricing actions and automation initiatives.
• COO Christian Daes highlighted the record backlog and progress on automation, noting that cost structure improvements are strengthening the company's competitive position.
• CFO Santiago Giraldo stated that the company remains well-positioned to invest in growth and return capital to shareholders due to a conservative debt profile and strong cash generation.
• Management emphasized that the revenue guidance revision reflects cost headwinds rather than a change in demand trends.

Analyst Questions and Answers

• No specific analyst questions and answers were included in the press release text provided.

Other Key Points

• The company completed its redomiciliation from the Cayman Islands to the United States (State of Florida) effective July 7, 2026, to align with its U.S. listing and broaden investor access.
• Shareholders received $6.7 million in cash dividends during the quarter.
• Approximately $92.5 million remained available under the company's share repurchase program as of August 6, 2026.
• The company returned capital to shareholders through both dividends and share repurchases.
• The company's ordinary shares continue to trade on the NYSE under the symbol TGLS.