Tecnoglass Reports Third Quarter 2025 Results

- Record Quarterly Revenue of $260.5 Million, Up 9.3% Year-Over-Year Led by 7.6% Organic Growth - - Single-Family Residential Business and Multi-Family/Commercial Business Each Achieved Record Quarterly Revenues Through Market Share Gains and Geographic Expansion - - Net Income of $47.2 Million, or $1.01 Per Diluted Share, Marking the Second Most Profitable Quarter in the History of the Company - - Adjusted Net Income1 of $46.7 Million, or $1.00 Per Diluted Share - - Adjusted EBITDA1 of $79.1 Million, Representing 30.4% of Total Revenues - - Strong Balance Sheet for Disciplined Capital Deployment with Record Total Liquidity of $550 Million Through the Refinance and Expansion of Committed Credit Facility Plus Cash in Hand - - Backlog Expanded 21.4% Year-Over-Year to a Record $1.3 Billion - - Repurchased $30 Million in Shares and Paid $7 Million in Dividends, Returning a Significant Amount of Capital to Shareholders During the Quarter - - Announces Expansion of Share Repurchase Program to $150 Million, Backed by Strong Balance Sheet for Disciplined Deployment and Value Creation - - Updates Full Year 2025 Financial Guidance, Reinforcing Expectation to Broadly Outpace Industry Performance with Double-Digit Revenue Growth in 2025 and 2026 - Miami, FL, Nov. 06, 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 third quarter ended September 30, 2025. José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “We delivered exceptional third quarter results that showcase our team's operational excellence and strategic execution in a dynamic market environment. Record revenues and continued market share gains across both our residential and multi-family/commercial businesses underscore the strength of our business model and advantageous positioning. The early benefits from our residential pricing initiatives are materializing as planned, helping to offset elevated aluminum costs, certain tariffs and a stronger local currency while sustaining our industry-leading margins. Despite foreign exchange headwinds and an unfavorable revenue mix, we sustained very strong profitability and generated robust cash flow through disciplined operational execution. Our solid capital position enabled us to return significant value to shareholders and further expand our share repurchase program this quarter, demonstrating our commitment to balanced capital allocation that rewards shareholders while preserving strategic flexibility. With our record backlog providing strong visibility and multiple growth initiatives advancing, we are well-positioned to continue capturing market share and creating long-term value.” Christian Daes, Chief Operating Officer of Tecnoglass, added, “Third quarter results remained healthy across our portfolio, with increased residential order activity given our dealership expansion and continued momentum in multi-family and commercial markets. Our expanding dealer network and geographic reach continue to drive market share gains in key regions. We are particularly pleased to report another record backlog of $1.3 billion, providing excellent visibility into our multi-family/commercial pipeline through 2026. The opening of our California showroom in the fourth quarter represents an important milestone in our West Coast expansion strategy, where we are already seeing encouraging order momentum, and we continue to advance our feasibility study for a new fully automated facility in Florida. Our vertically integrated platform and ongoing investments in product innovation, including our expanding vinyl product portfolio, position us to capitalize on growth opportunities while maintaining operational agility. As we progress through the remainder of the year, we remain focused on executing our growth strategy and delivering superior value to our customers.” Third Quarter 2025 Results Total revenues for the third quarter of 2025 increased 9.3% to a record $260.5 million, compared to $238.3 million in the prior year quarter. Multi-family/commercial revenues grew 14.3% year-over-year driven by strong organic activity within key markets and, to a lesser extent, from the Continental Glass asset acquisition in March 2025. Single-family residential revenues increased 3.4% year-over-year, attributable to previously implemented pricing initiatives, market share gains from geographic expansion, and broader product offerings. Changes in foreign currency exchange rates contributed $0.2 million to total revenues in the quarter. Gross profit for the third quarter of 2025 was $111.3 million, representing a 42.7% gross margin, compared to gross profit of $109.2 million, representing a 45.8% gross margin, in the prior year quarter. The year-over-year change in gross margin reflected unfavorable revenue mix on a higher amount of installation revenue, higher raw material cost related to all-time high premiums for U.S. aluminum, and a revaluation of the Colombian Peso during the quarter. Selling, general and administrative expense (“SG&A”) was $47.3 million for the third quarter of 2025 compared to $41.5 million in the prior year quarter, with the increase partly attributable to approximately $3.1 million in aluminum tariffs on standalone component sales. Additionally, we incurred higher transportation and commission 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 18.2% for the third quarter of 2025 compared to 17.4% in the prior year quarter, primarily due to the aforementioned factors. Net income was $47.2 million, or $1.01 per diluted share, in the third quarter of 2025 compared to net income of $49.5 million, or $1.05 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction gain of $1.9 million in the third quarter of 2025 and a gain of $0.9 million in the third quarter of 2024. These non-cash gains 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 $46.7 million, or $1.00 per diluted share, in the third quarter of 2025 compared to adjusted net income1 of $50.9 million, or $1.08 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 $79.1 million, or 30.4% of total revenues, in the third quarter of 2025, compared to $81.4 million, or 34.2% of total revenues, in the prior year quarter. The change was primarily attributable to the aforementioned factors impacting gross margin. Adjusted EBITDA1 in the third quarter of 2025 included a $0.6 million contribution from the Company’s joint venture with Saint-Gobain, compared to $2.1 million in the prior year quarter. Cash Generation, Capital Allocation and Liquidity Cash provided by operating activities for the third quarter of 2025 was $40.0 million, primarily driven by increased profitability on higher revenues and efficient working capital management, which more than offset incremental inventory purchases of US aluminum. Capital expenditures of $18.8 million in the quarter included scheduled payments on previous investments. During the third quarter, the Company returned capital to shareholders through an aggregate of $30.0 million in share repurchases and $7.0 million in cash dividends. In November 2025, the Company’s Board of Directors authorized the expansion of the Company’s share repurchase authorization to $150.0 million to execute during opportunistic times. This further reflects the Board’s confidence in continued cash flow generation capabilities, prudent balance sheet management, and a commitment to delivering superior returns to shareholders while maintaining ample financial flexibility to execute on our growth initiatives. Management will have discretion in the repurchase of common shares, including the timing and amount to be repurchased. Following the expansion, the Company had approximately $96.5 million remaining under its existing share repurchase program. Given the Company’s strong cash generation, it ended the third quarter of 2025 with total liquidity of approximately $550.0 million, including $124.0 million of cash and cash equivalents and $425.0 million of availability under its revolving credit facilities, and total debt of $111.9 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 US, narrowing its search to two potential locations in Florida. The plant will be fully automated and is 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. Full Year 2025 Guidance Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “Based on our solid performance year-to-date and expectations for the fourth quarter, we are updating our expectations for the full year 2025. We now expect revenues to be in the range of $970 million to $990 million, reflecting growth of approximately 10% at the midpoint. We are also updating our Adjusted EBITDA¹ guidance to a range of $294 million to $304 million, representing approximately 8% growth at the midpoint. We are reaping the benefit of our pricing initiatives and other cost mitigation efforts in response to elevated input costs and tariffs on select products. Our revised guides incorporates higher than previously anticipated aluminum costs and US aluminum premiums as well as the impact of the recent revaluation of the Colombian Peso. With an expanding multi-year backlog and sustained record of market outperformance, we continue to gain share and position our company to achieve double-digit revenue growth into 2026.” Webcast and Conference Call Management will host a webcast and conference call on November 6, 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 Third 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: 10203748 . About TecnoglassTecnoglass 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) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $123,991 $134,882 Investments 3,080 2,645 Trade accounts receivable, net 242,655 202,915 Due from related parties 4,107 2,674 Inventories 194,404 139,642 Contract assets – current portion 30,366 22,920 Other current assets 59,846 54,332 Total current assets $658,449 $560,010 Long-term assets: Property, plant and equipment, net $445,075 $344,433 Long-term account receivables 1,666 - Deferred income taxes 543 285 Contract assets – non-current 15,136 15,208 Intangible assets 13,165 4,389 Goodwill 30,059 23,561 Long-term investments 57,755 63,264 Other long-term assets 6,229 5,498 Total long-term assets 569,628 456,638 Total assets $1,228,077 $1,016,648 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt and current portion of long-term debt $707 $1,087 Trade accounts payable and accrued expenses 125,382 98,843 Due to related parties 9,993 9,864 Dividends payable 7,005 7,074 Contract liability – current portion 136,482 97,979 Other current liabilities 53,049 50,979 Total current liabilities $332,618 $265,826 Long-term liabilities: Deferred income taxes $18,874 $11,419 Contract liability – non-current 1,428 - Long-term debt 111,190 108,220 Total long-term liabilities 131,492 119,639 Total liabilities $464,110 $385,465 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively $- $- Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 46,569,546 and 46,991,558 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 5 5 Legal Reserves 1,458 1,458 Additional paid-in capital 161,767 192,094 Retained earnings 651,162 538,787 Accumulated other comprehensive loss (50,425) (101,161)Total shareholders’ equity 763,967 631,183 Total liabilities and shareholders’ equity $1,228,077 $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 Nine months ended September 30, September 30, 2025 2024 2025 2024 Operating revenues: External customers $259,189 $237,439 $734,606 $648,456 Related parties 1,290 888 3,707 2,152 Total operating revenues 260,479 238,327 738,313 650,608 Cost of sales (149,159) (129,094) (415,133) (377,138)Gross profit 111,320 109,233 323,180 273,470 Operating expenses: Selling expense (25,977) (23,190) (79,324) (60,773)General and administrative expense (21,321) (18,348) (63,581) (52,846)Total operating expenses (47,298) (41,538) (142,905) (113,619)Other Operating income 1,361 - 5,641 - Operating income 65,383 67,695 185,916 159,851 Non-operating income, net 3,739 1,365 5,343 5,176 Equity method income 519 1,394 2,805 3,677 Foreign currency transactions (loss) gains 1,865 870 2,203 (4,858)Loss on debt extinguishment (1,354) - (1,354) - Interest expense and deferred cost of financing (2,163) (1,811) (4,844) (5,923)Income before taxes 67,989 69,513 190,069 157,923 Income tax provision (20,801) (19,978) (56,609) (43,630)Net income $47,188 $49,535 $133,460 $114,293 Basic income per share $1.01 $1.05 $2.84 $2.43 Diluted income per share $1.01 $1.05 $2.84 $2.43 Basic weighted average common shares outstanding 46,847,728 46,996,554 46,941,647 46,996,655 Diluted weighted average common shares outstanding 46,847,728 46,996,554 46,941,647 46,996,655 Other comprehensive income: Foreign currency translation adjustments 20,317 (2,657) 53,153 (30,948)Change in fair value of derivative contracts (2,565) (3,229) (2,417) (2,535)Other comprehensive income 17,752 (5,886) 50,736 (33,483)Comprehensive income $64,940 $43,649 $184,196 $80,810 Tecnoglass Inc. and SubsidiariesConsolidated Statements of Cash Flows (In thousands) / (Unaudited) Nine months ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $133,460 $114,293 Adjustments to reconcile net income to net cash provided by operating activities: Allowance for credit losses 1,696 714 Depreciation and amortization 26,441 19,730 Deferred income taxes 4,576 (992)Equity method income (2,805) (3,677)Gain on disposal of assets (4,226) - Deferred cost of financing 784 938 Other non-cash adjustments 410 113 Loss on extinguishment of debt 1,302 Realized gain on derivative instruments (2,045) Unrealized currency translation loss (18,264) 3,045 Changes in operating assets and liabilities: Trade accounts receivable (33,029) (38,789)Inventories (33,903) 2,680 Prepaid expenses (2,993) (2,930)Other assets (2,771) 5,050 Trade accounts payable and accrued expenses 15,235 10,063 Taxes payable (7,800) (22,179)Labor liabilities 3,815 2,949 Other liabilities 65 11 Contract assets and liabilities 26,766 15,921 Related parties (1,968) 2,466 CASH PROVIDED BY OPERATING ACTIVITIES $104,746 $109,406 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (675) (316)Business acquisition (6,841) - Dividends received 8,914 2,703 Sale of property and equipment 12,312 - Acquisition of property and equipment (81,695) (53,873)CASH USED IN INVESTING ACTIVITIES $(67,985) $(51,486) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividend (21,143) (14,575)Deferred financing costs and debt issuance fees (1,000) - Non-controlling interest purchase - (2,500)Share repurchase (30,327) (16)Proceeds from debt 116,018 2,657 Repayments of debt (114,115) (48,966)CASH USED IN FINANCING ACTIVITIES $(50,567) $(63,400) Effect of exchange rate changes on cash and cash equivalents $2,915 $(1,938) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,891) (7,418)CASH AND CASH EQUIVALENTS - Beginning of period 134,882 129,508 CASH AND CASH EQUIVALENTS - End of period $123,991 $122,090 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Interest $5,091 $8,049 Income Tax $59,076 $77,953 NON-CASH INVESTING AND FINANCING ACTIVITIES: Assets acquired under credit or debt $4,687 $5,571 Account payable for business acquisition $3,588 $- Revenues by Region(Amounts in thousands)(Unaudited) Three months ended Nine months ended Sep 30, Sep 30, 2025 2024 % Change 2025 2024 % Change Revenues by Region United States 246,531 228,198 8.0% 701,189 621,897 12.8%Colombia 7,643 5,474 39.6% 20,677 16,544 25.0%Other Countries 6,306 4,655 35.5% 16,447 12,166 35.2%Total Revenues by Region 260,479 238,327 9.3% 738,313 650,608 13.5% 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 Nine months ended Sep 30, Sep 30, 2025 2024 % Change 2025 2024 % Change Total Revenues with Foreign Currency Held Neutral 260,312 238,327 9.2% 739,107 650,608 13.6%Impact of changes in foreign currency 167 - (794) - Total Revenues, As Reported 260,479 238,327 9.3% 738,313 650,608 13.5% 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 Nine months ended Sep 30, Sep 30, 2025 2024 2025 2024 Net (loss) income 47,188 49,535 133,460 114,293 Less: Income (loss) attributable to non-controlling interest - - - - (Loss) Income attributable to parent 47,188 49,535 133,460 114,293 Foreign currency transactions losses (gains) (1,865) (870) (2,203) 4,858 Provision for bad debt 710 439 1,697 714 Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items) 1,383 1,449 8,680 3,088 Extinguishment of debt 1,354 - 1,354 - Derivative Financial Instruments (2,727) - (2,727) - Joint Venture VA (Saint Gobain) adjustments 366 924 224 3,146 Tax impact of adjustments at statutory rate 249 (621) (2,248) (3,778)Adjusted net (loss) income 46,659 50,856 138,237 122,321 Basic income (loss) per share 1.01 1.05 2.84 2.43 Diluted income (loss) per share 1.01 1.05 2.84 2.43 Diluted Adjusted net income (loss) per share 1.00 1.08 2.94 2.60 Diluted Weighted Average Common Shares Outstanding in thousands 46,848 46,997 46,942 46,997 Basic weighted average common shares outstanding in thousands 46,848 46,997 46,942 46,997 Diluted weighted average common shares outstanding in thousands 46,848 46,997 46,942 46,997 Three months ended Nine months ended Sep 30, Sep 30, 2025 2024 2025 2024 Net (loss) income 47,188 49,535 133,460 114,293 Less: Income (loss) attributable to non-controlling interest - - - - (Loss) Income attributable to parent 47,188 49,535 133,460 114,293 Interest expense and deferred cost of financing 1,686 1,742 4,367 5,854 Income tax (benefit) provision 20,801 19,978 56,609 43,630 Depreciation & amortization 9,958 6,951 26,441 19,730 Foreign currency transactions losses (gains) (1,865) (870) (2,203) 4,858 Provision for bad debt 710 439 1,697 714 Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items) 1,383 1,519 8,680 3,158 Extinguishment of debt 1,354 - 1,354 - Derivative Financial Instruments (2,727) - (2,727) - Joint Venture VA (Saint Gobain) EBITDA adjustments 628 2,145 1,417 4,367 Adjusted EBITDA 79,116 81,438 229,095 196,603 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 Nine months ended Sep 30, Sep 30, 2025 2024 2025 2024 Cash Provided by Operating Activities 39,987 41,460 104,746 109,405 Acquisition of property and equipment (18,756) (23,686) (81,695) (53,873)Portion of Continental Glass Systems asset acquisiton included in acquisition of property and equipment - - 15,127 - Free Cash Flow 21,231 17,774 38,178 55,532

Tecnoglass Reports Third Quarter 2025 Results

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