TGLS · Tecnoglass Inc.

Tecnoglass reported a record first quarter with revenue of $249.0 million, up 12.0% year-over-year, driven by a 20.4% surge in multi-family/commercial revenues, partially offset by a $0.9 million foreign exchange headwind. Single-family residential revenues were relatively stable, though order growth improved year-over-year. Gross profit declined to $95.8 million (38.5% margin) from $97.5 million (43.9% margin) in the prior year, pressured by an unfavorable mix from higher installation revenue, elevated U.S. aluminum costs (incremental $6.4 million headwind), annual wage adjustments in Colombia, and a stronger Colombian Peso. SG&A expenses rose to $50.9 million (20.4% of revenue) from $42.5 million (19.1%), partly due to a one-time $2.9 million Colombian wealth tax. Net income fell to $31.9 million ($0.71 diluted EPS) from $42.2 million ($0.90), while adjusted net income was $34.6 million ($0.78) versus $43.1 million ($0.92). Adjusted EBITDA decreased to $61.5 million (24.7% margin) from $70.2 million (31.6%). Management highlighted resilient demand, record backlog of $1.36 billion (up 19.1% YoY), and pricing actions implemented to mitigate tariff impacts. The company reaffirmed full-year 2026 revenue guidance of $1.06-$1.13 billion and Adjusted EBITDA of $225-$245 million, expecting tariff headwinds to be partly offset by pricing and efficiency initiatives. Cash from operations was $6.7 million, with capex of $17.3 million. The company returned $23.2 million to shareholders via buybacks ($16.5 million) and dividends ($6.7 million), with $92.5 million remaining under the buyback program. Balance sheet remains strong with $425 million total liquidity and $200.3 million debt. The redomiciliation to the U.S. is underway, and a potential U.S. manufacturing facility is being evaluated with land purchase expected in Q2 2026.