Tecnoglass Reports Record Second Quarter 2025 Results

- Record Quarterly Revenue of $255.5 Million, Up 16.3% Year-Over-Year with Double Digit Organic Growth in Both Single-Family Residential and Multi-Family/Commercial Businesses -- Single-Family Residential Revenue Achieved a Second Quarter Record of $109.6 Million, Up 14.5% Year-Over-Year -- Single-Family Residential Orders Grew 29.0% Sequentially, Marking the Second-Highest Quarter on Record with Strong Momentum Into the Second Half of 2025 -- Gross Margin of 44.7% Expanded 400 Basis Points Year-Over-Year -- Net Income of $44.1 Million, or $0.94 Per Diluted Share -- Adjusted Net Income1 of $48.5 Million, or $1.03 Per Diluted Share -- Adjusted EBITDA1 of $79.8 Million, Up 24.5% Year-Over-Year, Representing 31.2% of Total Revenues -- Strong Balance Sheet for Disciplined Deployment with Total Liquidity of $310 Million -- Backlog Expanded 17.2% Year-Over-Year to a Record $1.2 Billion -- Signed Lease for West Coast Showroom to Help Promote New “Legacy” Aluminum Product Line, Designed to Support Ongoing Geographical Expansion -- Completed Asset Acquisition of Continental Glass Systems, a Premier Provider of Architectural Glass and Glazing Solutions, Diversifying Production into the U.S. -- Continues Feasibility Study to Build Out a New Fully Automated State of the Art Facility in Florida -- Strengthens Full Year 2025 Financial Guidance – Miami, FL, Aug. 07, 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 reported financial results for the second quarter ended June 30, 2025. José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “We are extremely proud of our results with record quarterly performance across many of our key metrics. Our ability to consistently generate robust growth and share gains while significantly expanding margins demonstrates the power of our vertically integrated platform. Successful pricing actions in our residential business validate the strong demand for our high-quality, innovative products even during this dynamic market environment. The completion of the Continental Glass asset acquisition further solidifies our market presence in key geographies and provides additional avenues for growth as we continue to execute on our strategic vision. With our strong balance sheet, substantial cash position, and growing backlog, we are capitalizing on market opportunities while maintaining our commitment to pursue additional value-enhancing initiatives." Christian Daes, Chief Operating Officer of Tecnoglass, added, “Our strong results are a direct reflection of our competitive advantages, which continue to enable us to gain market share while delivering best-in-class solutions to customers. We achieved robust growth across both our residential and commercial businesses, driven by market share gains, strategic diversification initiatives and further expansion of our vinyl product lines. Our backlog grew to a record $1.2 billion, providing visibility into our multi-family and commercial project pipeline extending well into 2026. The solid uptick in single-family residential orders puts us on even sturdier footing into the back half of the year. Combined with our proven execution capabilities and expanding geographic footprint, including our upcoming California showroom launch, we are confident in delivering continued growth and additional share gains." Second Quarter 2025 Results Total revenues for the second quarter of 2025 increased 16.3% to a record $255.5 million, compared to $219.7 million in the prior year quarter. Multi-family/commercial revenues grew 17.8% year-over-year driven by strong organic activity within key markets and, to a lesser extent, from the Continental Glass asset acquisition. Single-family residential revenues increased 14.5% year-over-year, with a portion of the growth estimated to be driven by customers accelerating orders ahead of anticipated tariff-related price adjustments and the majority attributable to market share gains from geographic expansion and broader product offerings. Changes in foreign currency exchange rates had an adverse impact of $0.5 million on total revenues in the quarter. Gross profit for the second quarter of 2025 was $114.3 million, representing a 44.7% gross margin, compared to gross profit of $89.6 million, representing a 40.8% gross margin, in the prior year quarter. The year-over-year increase in gross margin reflected the benefits from stronger pricing, stable raw material costs, operating leverage and a higher vertical integration during the quarter. Selling, general and administrative expense (“SG&A”) was $53.1 million for the second quarter of 2025 compared to $38.4 million in the prior year quarter, with the increase primarily attributable to incremental selling expenses associated with approximately $5.9 million in aluminum tariffs paid in April, ahead of adjustments made in our supply chains in order to mitigate the impact. Additionally, we incurred higher transportation expenses associated with the revenue growth in the quarter and higher personnel expenses associated with annual salary adjustments at the beginning of the year. As a percent of total revenues, SG&A was 20.8% for the second quarter of 2025 compared to 17.5% in the prior year quarter, primarily due to the aforementioned factors. Price adjustments implemented in May began offsetting these incremental expenses toward the end of June, once newly priced orders started being invoiced. Net income was $44.1 million, or $0.94 per diluted share, in the second quarter of 2025 compared to net income of $35.0 million, or $0.75 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction gain of $0.8 million in the second quarter of 2025 and a $5.6 million loss in the second quarter of 2024. These non-cash gains and losses are related to the accounting re-measurement of U.S. Dollar denominated assets and liabilities against the Colombian Peso as functional currency. Adjusted net income1 was $48.5 million, or $1.03 per diluted share, in the second quarter of 2025 compared to adjusted net income1 of $40.5 million, or $0.86 per diluted share, in the prior year quarter. Adjusted net income1, as reconciled in the table below, excludes the impact of non-cash foreign exchange transaction gains or losses and other non-core items, along with the tax impact of adjustments at statutory rates, to better reflect core financial performance. Adjusted EBITDA1, as reconciled in the table below, was $79.8 million, or 31.2% of total revenues, in the second quarter of 2025, compared to $64.1 million, or 29.2% of total revenues, in the prior year quarter. The improvement was driven by higher revenues and improved gross margins, which more than offset the incremental expenses previously described. Adjusted EBITDA1 in the second quarter of 2025 included a $0.5 million contribution from the Company’s joint venture with Saint-Gobain, compared to $1.4 million in the prior year quarter. Cash Generation, Capital Allocation and Liquidity Cash provided by operating activities for the second quarter of 2025 was $17.9 million, primarily driven by increased profitability on higher revenues and efficient working capital management, despite the seasonal impact of income tax payments getting paid during the second quarter of the year. Capital expenditures of $32.5 million in the quarter included scheduled payments on previous investments, along with $15.1 million from the Continental Glass asset acquisition classified as capital expenditures. During the quarter, the Company returned capital to shareholders through an aggregate of $7.0 million in cash dividends. As of August 7, 2025, the Company has approximately $76.5 million remaining under its current share repurchase program. Given the Company’s strong cash generation, it ended the second quarter of 2025 with total liquidity of approximately $310 million, including $137.9 million of cash and cash equivalents and $170.0 million of availability under its revolving credit facilities, and total debt of $109.2 million. As previously announced, the Company continues to work through a feasibility study to build out a new state of the art facility in the U.S., narrowing its search to two potential locations in Florida. The plant will be fully automated and expected to address all future growth needs beyond current installed capacity. In addition to diversifying the Company´s operational footprint, the new plant is expected to yield advantages in lead-times, transportation costs and supply chain efficiencies. Continental Glass Asset Acquisition In April 2025, Tecnoglass acquired certain assets of Florida-based Continental Glass Systems, a premier provider of innovative architectural glass and glazing solutions in the Southeast U.S., for approximately $30 million. This acquisition included a manufacturing plant, various intangibles, and a substantial project backlog in both execution and pipeline phases. It is anticipated that the acquisition will strengthen Tecnoglass' U.S. market presence, broaden its client reach, and create synergies that reinforce Tecnoglass' leadership position in the architectural glass industry. Additionally, the Company anticipates operational benefits as it integrates Continental Glass's supply chains into its existing manufacturing operations. Full Year 2025 Guidance Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “Our robust performance through the first half of 2025 and the continued strength we are seeing across our business support an increase to our previously provided full year guidance. We now expect revenues to be in the range of $980 million to $1.02 billion, reflecting growth of approximately 12% at the midpoint. We are narrowing our Adjusted EBITDA¹ guidance to a range of $310 million to $325 million, representing approximately 15% growth at the midpoint. This updated outlook maintains our assumption that our pricing initiatives and other mitigation efforts will more than compensate for a projected $25 million full year impact from elevated input costs and tariffs on select products. In our single-family residential business, we estimate the significant majority of accelerated customer orders during the second quarter were pulled from the third quarter. Given our strong order momentum, an expanding backlog that extends well into 2026, and our sustained record of outperformance in nearly all market climates, we are poised to achieve another year of robust profitability and cash generation.” Webcast and Conference Call Management will host a webcast and conference call on August 7, 2025, at 10:00 a.m. Eastern time to review the Company’s results. The conference call will be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the call and view the slides, please visit the Investor Relations section of Tecnoglass’ website at www.tecnoglass.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those unable to access the webcast, the conference call will be accessible by dialing 1-844-676-5131 (domestic) or 1-412-634-6589 (international). Upon dialing in, please request to join the Tecnoglass Second Quarter 2025 Earnings Conference Call. If you are unable to listen live, a replay of the webcast will be archived on the website. You may also access the conference call playback by dialing 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) and entering passcode: 10200906. About Tecnoglass Tecnoglass Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass serving the multi-family, single-family, and commercial end markets. Tecnoglass is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. Located in Barranquilla, Colombia, the Company’s 5.8 million square foot, vertically integrated, and state-of-the-art manufacturing complex provide efficient access to nearly 1,000 customers in North, Central and South America, with the United States accounting for 95% of total revenues. Tecnoglass’ tailored, high-end products are found on some of the world’s most distinctive properties, including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá), One Plaza (Medellín), Pabellon de Cristal (Barranquilla). For more information, please visit www.tecnoglass.com or view our corporate video at https://vimeo.com/134429998. Forward Looking Statements This press release 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 vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass’ business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass’ filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that Tecnoglass’ financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events and changes in assumptions or otherwise, except as required by law. 1 Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below. Investor Relations: Santiago Giraldo / CFO305-503-9062investorrelations@tecnoglass.com Tecnoglass Inc. and SubsidiariesConsolidated Balance Sheets (In thousands, except share and per share data) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $137,907 $134,882 Investments 2,947 2,645 Trade accounts receivable, net 227,589 202,915 Due from related parties 3,345 2,674 Inventories 176,521 139,642 Contract assets – current portion 30,768 22,920 Other current assets 60,322 54,332 Total current assets $639,399 $560,010 Long-term assets: Property, plant and equipment, net $421,954 $344,433 Long-term account receivables 1,597 - Deferred income taxes 475 285 Contract assets – non-current 12,405 15,208 Intangible assets 12,775 4,389 Goodwill 30,178 23,561 Long-term investments 56,635 63,264 Other long-term assets 5,791 5,498 Total long-term assets 541,810 456,638 Total assets $1,181,209 $1,016,648 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt and current portion of long-term debt $587 $1,087 Trade accounts payable and accrued expenses 138,608 98,843 Due to related parties 9,714 9,864 Dividends payable 7,068 7,074 Contract liability – current portion 128,306 97,979 Other current liabilities 36,198 50,979 Total current liabilities $320,481 $265,826 Long-term liabilities: Deferred income taxes $15,945 $11,419 Contract liability – non-current 140 - Long-term debt 108,642 108,220 Total long-term liabilities 124,727 119,639 Total liabilities $445,208 $385,465 SHAREHOLDERS’ EQUITY Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively $- $- Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 46,987,148 and 46,991,558 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 5 5 Legal Reserves 1,458 1,458 Additional paid-in capital 191,755 192,094 Retained earnings 610,960 538,787 Accumulated other comprehensive loss (68,179) (101,161)Total shareholders’ equity 736,001 631,183 Total liabilities and shareholders’ equity $1,181,209 $1,016,648 Tecnoglass Inc. and SubsidiariesConsolidated Statements of Operations and Comprehensive Income (In thousands, except share and per share data)(Unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Operating revenues: External customers $254,145 $218,928 $475,417 $411,017 Related parties 1,401 726 2,417 1,264 Total operating revenues 255,546 219,654 477,834 412,281 Cost of sales (141,211) (130,077) (265,974) (248,044)Gross profit 114,335 89,577 211,860 164,237 Operating expenses: Selling expense (29,730) (20,000) (53,347) (37,583)General and administrative expense (23,405) (18,443) (42,260) (34,498)Total operating expenses (53,135) (38,443) (95,607) (72,081)Other Operating income 4 - 4,280 - Operating income 61,204 51,134 120,533 92,156 Non-operating income, net 588 2,731 1,604 3,811 Equity method income 942 1,237 2,286 2,283 Foreign currency transactions (loss) gains 847 (5,575) 338 (5,728)Interest expense and deferred cost of financing (1,350) (2,006) (2,681) (4,112)Income before taxes 62,231 47,521 122,080 88,410 Income tax provision (18,148) (12,493) (35,808) (23,652)Net income $44,083 $35,028 $86,272 $64,758 Basic income per share $0.94 $0.75 $1.84 $1.38 Diluted income per share $0.94 $0.75 $1.84 $1.38 Basic weighted average common shares outstanding 46,988,155 46,996,705 46,989,650 46,996,706 Diluted weighted average common shares outstanding 46,988,155 46,996,750 46,989,650 46,996,706 Other comprehensive income: Foreign currency translation adjustments 13,260 (28,321) 32,836 28,291 Change in fair value of derivative contracts 785 (342) 148 694 Other comprehensive income 14,045 (28,663) 32,984 27,597 Comprehensive income $ 58,128 $6,365 $ 119,256 $37,161 Tecnoglass Inc. and SubsidiariesConsolidated Statements of Cash Flows (In thousands) / (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income 44,083 35,028 $86,272 $64,758 Adjustments to reconcile net income to net cash provided by operating activities: - - Allowance for credit losses 772 150 987 275 Depreciation and amortization 9,140 6,475 16,479 12,788 Deferred income taxes (468) (2,062) 2,002 1,456 Equity method income (942) (1,237) (2,286) (2,283) Gain on disposal of assets 19 (3) (4,254) - Deferred cost of financing 273 318 556 640 Other non-cash adjustments 168 32 391 32 Unrealized currency translation losses (2,404) 4,968 (8,718) 741 Changes in operating assets and liabilities: - - Trade accounts receivables (1,383) (9,753) (20,376) (5,913) Inventories (15,318) 658 (23,996) 14,395 Prepaid expenses (2,615) (1,443) (2,529) (1,743) Other assets 11,633 18,077 (3,247) 8,827 Trade accounts payable and accrued expenses 10,143 20,754 21,802 12,695 Taxes payable (34,166) (44,029) (18,513) (36,961) Labor liabilities 1,378 955 87 (121) Other liabilities 128 (19) 14 42 Contract assets and liabilities (1,745) 4,837 21,387 (3,192) Related parties (834) 792 (1,298) 1,509 CASH PROVIDED BY OPERATING ACTIVITIES 17,862 34,498 $64,760 $67,945 CASH FLOWS FROM INVESTING ACTIVITIES Dividends received 8,914 2,703 8,914 2,703 Business acquisition (6,841) - (6,841) Purchase of investments 0 (11) (73) (317) Sale of Property and equipment 5 - 12,312 - Acquisition of property and equipment (32,516) (20,302) (62,939) (30,188) CASH USED IN INVESTING ACTIVITIES (30,438) (17,610) $(48,627) $(27,802) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividend (7,047) (5,168) (14,095) (9,407) Non controlling interest purchase - (2,500) - (2,500) Stock buyback (215) (5) (339) (5) Proceeds from debt (3) (195) 3,613 2,571 Repayments of debt (223) (15,773) (4,103) (30,986) CASH USED IN FINANCING ACTIVITIES (7,488) (23,641) $(14,924) $(40,327) Effect of exchange rate changes on cash and cash equivalents 667 (2,322) $1,816 $(2,519) NET (DECREASE) INCREASE IN CASH (19,395) (9,075) 3,024 (2,703) CASH - Beginning of period 157,302 135,881 134,882 129,508 CASH - End of period 137,907 126,806 $137,907 $126,805 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Interest 1,641 2,731 $3,343 $5,559 Income Tax 33,222 45,513 $47,360 $59,607 NON-CASH INVESTING AND FINANCING ACTIVITES: - - Assets acquired under credit or debt (3,400) 3,267 $7,663 $4,572 Revenues by Region (Amounts in thousands)(Unaudited) Three months ended Six months ended June 30, June 30,2025 2024 % Change 2025 2024 % ChangeRevenues by Region United States242,205 209,697 15.5% 454,660 393,700 15.5%Colombia6,620 5,831 13.5% 13,034 11,070 17.7%Other Countries6,722 4,127 62.9% 10,141 7,512 35.0%Total Revenues by Region 255,546 219,654 16.3% 477,834 412,281 15.9% Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures(In thousands)(Unaudited) The Company believes that total revenues with foreign currency held neutral, which are not performance measures under generally accepted accounting principles (“GAAP”), may provide users of the Company's financial information with additional meaningful bases for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. Management uses such performance measures in managing and evaluating the Company’s business. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States. Three months ended Six months ended June 30, June 30,2025 2024 % Change 2025 2024 % Change Total Revenues with Foreign Currency Held Neutral256,006 219,654 16.5% 478,751 412,281 16.1%Impact of changes in foreign currency(460) - (916) - Total Revenues, As Reported255,546 219,654 16.3% 477,834 412,281 15.9% Currency impacts on total revenues for the current quarter have been derived by translating current quarter revenues at the prevailing average foreign currency rates during the prior year quarter, as applicable. Reconciliation of Adjusted EBITDA and Adjusted net (loss) income to net (loss) income(In thousands, except share and per share data) / (Unaudited) Adjusted EBITDA and adjusted net (loss) income are non-GAAP performance measures. Management believes Adjusted EBITDA and adjusted net (loss) income, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that are not directly related to the Company’s core operating performance. Investors should recognize that Adjusted EBITDA and adjusted net (loss) income might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. Reconciliations of the non-GAAP measures used in this press release are included in the tables attached to this press release, to the extent available without unreasonable effort. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results. Three months ended Six months ended Jun 30, Jun 30, 2025 2024 2025 2024 Net (loss) income 44,083 35,028 86,272 64,758 Less: Income (loss) attributable to non-controlling interest - - - - (Loss) Income attributable to parent 44,083 35,028 86,272 64,758 Foreign currency transactions losses (gains) (847) 5,575 (338) 5,728 Provision for bad debt 772 150 987 275 Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items) 6,660 968 7,297 1,639 Joint Venture VA (Saint Gobain) adjustments (89) 1,409 (142) 2,192 Tax impact of adjustments at statutory rate (2,079) (2,593) (2,497) (3,147)Adjusted net (loss) income 48,500 40,537 91,578 71,445 Basic income (loss) per share 0.94 0.75 1.84 1.38 Diluted income (loss) per share 0.94 0.75 1.84 1.38 Diluted Adjusted net income (loss) per share 1.03 0.86 1.95 1.52 Diluted Weighted Average Common Shares Outstanding in thousands 46,988 46,997 46,990 46,997 Basic weighted average common shares outstanding in thousands 46,988 46,997 46,990 46,997 Diluted weighted average common shares outstanding in thousands 46,988 46,997 46,990 46,997 Three months ended Six months ended Jun 30, Jun 30, 2025 2024 2025 2024 Net (loss) income 44,083 35,028 86,272 64,758 Less: Income (loss) attributable to non-controlling interest - - - - (Loss) Income attributable to parent 44,083 35,028 86,272 64,758 Interest expense and deferred cost of financing 1,350 2,006 2,681 4,112 Income tax (benefit) provision 18,148 12,493 35,808 23,652 Depreciation & amortization 9,145 6,463 16,483 12,779 Foreign currency transactions losses (gains) (847) 5,575 (338) 5,728 Provision for bad debt 772 150 987 275 Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items) 6,660 968 7,297 1,639 Joint Venture VA (Saint Gobain) EBITDA adjustments 468 1,409 789 2,192 Adjusted EBITDA 79,779 64,092 149,979 115,135 Reconciliation of Free Cash Flow to Cash Provided by Operating Activities(In thousands, except share and per share data) / (Unaudited) The Company believes that free cash flow, which is not a performance measures under generally accepted accounting principles (“GAAP”), may provide users of the Company's financial information with additional meaningful bases for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. Management uses such performance measures in managing and evaluating the Company’s business. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States. Three months ended Six months ended Jun 30, Jun 30, 2025 2024 2025 2024 Cash Provided by Operating Activities 17,862 34,498 64,760 67,945 Acquisition of property and equipment (32,515) (20,302) (62,939) (30,188)Portion of Continental Glass Systems asset acquisiton included in acquisition of property and equipment 15,127 - 15,127 - Free Cash Flow 474 14,196 16,948 37,757

Tecnoglass Reports Record Second Quarter 2025 Results

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