Tecnoglass, Inc. (NYSE: TGLS) reported first-quarter 2026 revenue of $249.0 million USD, a 12.0% year-over-year increase and a first-quarter record for the Barranquilla, Colombia-based window and architectural glass manufacturer. Despite the top-line growth, net income fell to $31.9 million USD, or $0.71 per diluted share, from $42.2 million USD, or $0.90 per diluted share, in the same period of 2025, as elevated US aluminum costs linked to import tariffs, mandatory minimum wage increases in Colombia, and a strengthening Colombian peso combined to compress gross margins by 540 basis points to 38.5%.

Multi-family and commercial revenues rose 20.4% year-over-year, driven by continued activity across key markets including geographies beyond Florida, which has historically dominated the company’s US revenue mix. Single-family residential revenues were relatively flat on a year-over-year basis, with management attributing the result to the timing of order conversion into revenue rather than underlying demand, noting that order growth in the segment remained positive into April 2026. On a geographic basis, the US accounted for $237.1 million USD, or approximately 95% of total revenues, up 11.6%. Colombia generated $7.5 million USD, up 17.2%, and other international markets contributed $4.4 million USD, up 27.3%.

Gross profit declined to $95.8 million USD from $97.5 million USD in Q1 2025 despite the higher revenue base. The company cited an unfavorable revenue mix driven by a greater proportion of installation-related revenue, higher raw material costs — with US aluminum tariffs representing an incremental headwind of approximately $6.4 million USD in the quarter — higher salary expenses resulting from annual minimum wage adjustments in Colombia, and the effect of a stronger Colombian peso on costs incurred locally. Pricing actions and operating leverage on higher volume partly offset these pressures.

“We see a clear path to fully offsetting the impact of tariffs in 2027, when full-year pricing across both businesses and incremental automation savings are expected to be realized.” — Santiago Giraldo, Chief Financial Officer, Tecnoglass

Selling, general, and administrative expenses rose to $50.9 million USD, or 20.4% of revenues, from $42.5 million USD, or 19.1%, in Q1 2025. The increase reflected higher personnel costs from annual salary adjustments, peso appreciation, and higher transportation and commission costs tied to revenue growth. The period also included a one-time charge of $2.9 million USD related to Colombia’s *impuesto al patrimonio*, a government-imposed wealth tax levied on large corporations to fund measures addressing recent climate-related events in the country.

Adjusted EBITDA — which excludes non-cash foreign exchange gains and losses, the bad-debt provision, non-recurring charges, and equity-method adjustments related to the company’s joint venture in Vidrio Andino with Saint-Gobain (EPA: SGO) — came in at $61.5 million USD, or 24.7% of total revenues, compared to $70.2 million USD, or 31.6%, in Q1 2025. Adjusted net income was $34.6 million USD, or $0.78 per diluted share, versus $43.1 million USD, or $0.92, in the prior-year quarter.

Cash provided by operating activities was $6.7 million USD, a significant decline from $46.9 million USD in Q1 2025, driven in part by a deliberate build-up of US-sourced aluminum inventories — up $34.3 million USD in the quarter — as part of the company’s tariff mitigation strategy. Capital expenditures of $17.3 million USD reflected scheduled payments tied to previously announced capacity and automation projects. During the quarter, Tecnoglass returned $16.5 million USD to shareholders through share repurchases and paid $6.7 million USD in cash dividends. As of May 7, 2026, approximately $92.5 million USD remained available under the current share repurchase program. The company ended the quarter with total liquidity of approximately $425.0 million USD, comprising $91.1 million USD in cash and cash equivalents and more than $330.0 million USD in revolving credit facility availability, against total debt of $200.3 million USD.

The company’s order backlog reached a record $1.36 billion USD at quarter-end, up 19.1% year-over-year, extending multi-family and commercial pipeline visibility into 2027. Tecnoglass cited continued expansion of its dealer network and showroom footprint as supporting geographic diversification and market share gains, with vinyl product lines identified as an incremental growth driver broadening the company’s addressable market.

José Manuel Daes, chief executive officer, commented on the results: “First quarter results were in line with our expectations, with resilient performance across our key metrics reflecting the continued strength of our vertically integrated business model despite a dynamic cost environment. Demand for our product offerings remains strong, as demonstrated by another quarter of record backlog and healthy order activity, with momentum continuing into the second quarter. Our previously announced pricing actions are now in place, and the broad-based nature of industry cost pressures supports our confidence in executing these increases while preserving our competitive positioning.”

Christian Daes, chief operating officer, addressed the tariff response and the company’s assessment of a potential US manufacturing presence. “Our pricing initiatives and cost mitigation efforts are well underway, including logistics improvements, further automation across our operations, and ongoing supply chain optimization,” he said. “We are also advancing our assessment of a proposed US manufacturing initiative, with a well-located site identified and significant state and local incentives secured that strengthen the project’s potential economics if we decide to move forward based on market demand.”

Santiago Giraldo, chief financial officer, reaffirmed full-year 2026 guidance and outlined the company’s tariff offset timeline. “Based on our strong execution to start the year, we are reiterating our full year revenue outlook in the range of $1.06 billion to $1.13 billion USD and Adjusted EBITDA outlook in the range of $225 million to $245 million USD,” Giraldo said. “This reflects the impact of the recently implemented 10% tariff on finished aluminum window imports as previously disclosed, which is expected to be partly offset in 2026 through pricing actions effective on orders from early May forward, with additional efficiency initiatives from logistics optimization and automation underway and expected to begin contributing benefits by year end. We see a clear path to fully offsetting the impact of tariffs in 2027, when full-year pricing across both businesses and incremental automation savings are expected to be realized.”

On the corporate structure front, Tecnoglass’ board of directors has approved a plan to redomicile the company from the Cayman Islands to the United States, subject to shareholder approval. If approved, the redomiciliation is expected to be completed during Q2 2026. The company stated that the move is intended to simplify its organizational and regulatory structure, improve the tax efficiency of dividend distributions, and expand its potential investor base to include funds and accounts limited to US-domiciled securities. Tecnoglass will retain its Miami, Florida headquarters following the change.

Separately, the company is conducting a feasibility study for a potential new US manufacturing facility. A site meeting project specifications has been identified and substantial state and local tax credits have been secured. The proposed facility is described as highly automated and intended to support future growth while also improving lead times, reducing transportation costs for certain markets, enhancing supply chain efficiency, and enabling the company to compete for Buy America-eligible projects and rapid-turnaround contracts. Tecnoglass expects to complete the purchase of land for the potential facility during Q2 2026, at an estimated cost of $20 million to $25 million USD to be financed through available credit facilities. The company noted that the land purchase does not constitute a commitment to proceed with construction, which would occur in phases contingent on demand, market conditions, and return profiles. The company’s 5.8-million-square-foot vertically integrated manufacturing complex in Barranquilla, Colombia, would continue to serve as its primary production base.

Above photo: Tecnoglass facilities in Barranquilla

Additionally, the ES Pivot Door was recognized in Luxe Magazine’s RED (Residential Excellence in Design) Awards, earning the Readers’ Choice award. This accolade, part of the luxury residential design sector, acknowledges achievements in residential architecture, interior design, and landscape architecture.

Tecnoglass CEO José Manuel Daes remarked that the awards reflect the company’s focus on innovation and design in high-performance window and door systems.

Single-family residential revenue showed strong organic growth, reaching a record $95.7 million, a 10.1% increase from the previous year. The company attributed this growth to improving market trends and the expiration of the Florida Impact-Resistant Windows and Doors Sales Tax Exemption.

Net income for the quarter was $35.0 million, or $0.75 per diluted share, compared to $52.6 million, or $1.10 per diluted share, in the previous year. Adjusted net income was $40.5 million, or $0.86 per diluted share, down from $53.5 million, or $1.12 per diluted share, in the prior year. Adjusted EBITDA stood at $64.1 million, representing 29.2% of total revenues, compared to $85.0 million, or 37.7%, in the prior year.

Tecnoglass has reported solid financial performance for the second quarter of 2024, driven by strong single-family residential revenue and a growing backlog.

Cash Flow and Liquidity

The company generated $34.5 million in cash from operations, representing 54% of adjusted EBITDA. Capital expenditures amounted to $20.3 million, including investments in land for potential capacity expansion and a down payment for the Miami headquarters and flagship showroom.

Tecnoglass returned $5.2 million to shareholders in cash dividends and made a $15 million voluntary prepayment to its term loan facility. The company ended the quarter with approximately $300 million in liquidity, including $127 million in cash and cash equivalents and $170 million in available credit. The net leverage ratio was a record low of 0.06x at the quarter’s end.

Backlog and Orders

The company’s backlog grew 29% year-over-year to a record $1.02 billion. Single-family residential orders increased by over 60% compared to the previous year, continuing a record trajectory for the second quarter.

Outlook

Tecnoglass provided an improved full-year 2024 outlook. The company expects full-year revenues to range between $860 million and $910 million, representing approximately 6% growth at the midpoint. Adjusted EBITDA is projected to be between $260 million and $285 million, with an implied adjusted EBITDA margin of approximately 31% at the midpoint.

Tecnoglass COO Christian Daes (l), CEO José Manuel Daes (seated), joined by Ignacio Guatibonza Guerra of BakerTilly (photo Loren Moss)

Sustainability Efforts

Tecnoglass has achieved carbon neutrality for 2022 and 2023, reinforcing its commitment to sustainable practices. The company invested in energy efficiency projects, including upgrading generators and implementing cogeneration systems, resulting in total GHG emissions of 390,411 tCO2eq/year. To offset its carbon footprint, Tecnoglass acquired carbon credits from projects in Colombia certified through the Cercarbono program.

CEO José Manuel Daes stated, “Our commitment to sustainability is a strategic priority. We recognize the importance of taking proactive steps to combat climate change and are proud to be at the forefront of sustainability efforts in our industry.”

Tecnoglass aims to become a net-zero emissions company by 2050, continuing to invest in renewable energy projects, energy efficiency initiatives, and the continuous improvement of its production processes.

In 2023, Tecnoglass had previously declared its goal to become a carbon-neutral company, supported by significant investments in energy efficiency, through projects such as upgrading generators and implementing cogeneration systems; which despite an increase of production, amounted to total GHG emissions across all scopes of 390.411 tCO2eq/year. These initiatives highlight Tecnoglass’ unwavering dedication to reducing its carbon footprint and enhancing operational sustainability.

To offset its carbon footprint, Tecnoglass voluntarily offset Scope 1 and 2 emissions for the years 2022 and 2023 by acquiring carbon credits issued by two projects located in Colombia, certified through the Cercarbono (Certified Carbon Standard) program. These projects were carefully selected for their ability to reduce, eliminate, or decrease greenhouse gas emissions, and their certifications are verified and validated by IQNet (International Certification Network) in its Colombian division, ICONTEC.

“Our commitment to sustainability is a strategic priority for Tecnoglass,” said José Manuel Daes, CEO of Tecnoglass. “We recognize the importance of taking proactive steps to combat climate change and are proud to be at the forefront of sustainability efforts in our industry. As part of our sustainability roadmap, we have set ambitious science-based targets to further reduce our carbon footprint and promote sustainable practices throughout our value chain. This achievement is just one step in our long-term plan to drive positive change and contribute to a more sustainable future.”

Tecnoglass remains committed to implementing sustainable practices throughout its operations and supply chain, with the ultimate goal of becoming a net-zero emissions company by 2050. The Company will continue to invest in renewable energy projects, energy efficiency initiatives, and the continuous improvement of its production processes to maintain its carbon-neutral status and work towards its long-term sustainability targets.

Gross profit in the quarter was also down, coming it $74.7 million USD (on a 38.8% gross margin) versus the $107.8 million USD (53.2% gross margin) reported in the first three months of 2023.

“The year-over-year change in gross margin reflected an unfavorable foreign exchange impact of nearly 800 basis points, reduced operating leverage on lower revenues, promotional activity on single-family residential products and an increased mix of installation and stand-alone product sales during the quarter partially related to the step down in single family activity during the period,” noted the company in an announcement accompanying its results.

Margins also continue to be affected by the “cash effect of a strong Colombian peso revaluation of approximately 18% year-over-year” as well as “non-cash effect related to an inventory mark-up associated with the valuation of inventory from when it was purchased in the fourth quarter of 2023 to when it was sold in the first quarter of 2024,” added Tecnoglass.

“The non-cash portion of the unfavorable currency effect during the quarter contrasted with a positive effect during the first quarter of 2023 and is related to the accounting of inventories in Pesos as the functional currency. On a sequential basis, gross margin compared to 42.6% in the fourth quarter of 2023 and was also impacted by a sequential Peso revaluation of approximately 5%.”

José Manuel Daes, chief executive officer of Tecnoglass, acknowledged the challenging environment and highlighted some of the positive news reflected in the results.

“I am proud of our team’s resilience to started off 2024,” he said. “In light of macroeconomic challenges, we maintained a steady course with our multi-family/commercial business executing against our record backlog while our single-family residential sales channel experienced inflationary constraints on consumer spending. That said, we were highly encouraged to see record levels of single-family residential orders during March and April, which we believe signals a positive shift in demand as we move into the second quarter.”

Commercial revenues were also up slightly, in line with scheduled project deliveries. Lower single-family residential revenues were impacted by slower activity resulting from end consumers experiencing higher interest rates and mortgage rates. Changes in foreign currency exchange rates had an adverse impact of $0.9 million on total revenues in the quarter.

These factors have led the executive to stay positive about a range of opportunities and strategic plans ahead in the 2024.

“We remain optimistic on the strength of our business, bolstered by vigorous quoting activity for our innovative vinyl windows and other offerings, strong customer partnerships, and substantial opportunities for geographic expansion in 2024 and beyond,” added Daes.

For his part, Christian Daes, the company’s chief operating officer, stressed the value of adaptability and said he expects deliveries to increase in the back half of the year.

“Our performance in the first quarter reflects our adaptability amidst a dynamic operating landscape,” he said. “We ended the quarter with another record multi-year backlog of $916 million, reflecting an expanding pipeline for multi-family/commercial projects into 2025.”

“Customer interest in our vinyl products continues to look very encouraging based on quoting activity,” added Christian, “and we are on track for deliveries to increase in the second half of 2024. Our strong backlog, strategic investments to broaden our product portfolio, and our best-in-class manufacturing capabilities give us confidence in our ability to drive further value creation in our business as we move forward.”

Photo: A Tecnoglass employee working in the company’s factory in Barranquilla, Colombia. (Photo credit: Liliana Padierna)

Overall, it reported net income of $183.5 million USD and a record full-year gross profit of $390.9 million USD, which supported the board’s decision to approves a 22% increase in quarterly dividend to $0.11 USD per share.

For the fourth quarter, revenues were down year-over-year, falling 7.8% to $194.6 million USD compared to $211.1 million USD in the prior-year fourth quarter. Gross profit fell as well, coming in at $83.0 million USD, for a 42.6% gross margin, in the final three months of 2023, a drop from the $110.2 million USD and 52.2% gross margin over the same period in 2022.

Despite the relatively down news for the quarter, the company executives remain focused on the record-setting full-year results and see positive signs for a similarly promising 2024.

“We are confident that 2024 will be another year of double-digit revenue growth,” said Santiago Giraldo, chief financial Officer of Tecnoglass, in the firm’s results announcement.

He noted the uncertainty ahead, given the macroeconomic conditions and current rate environment in the United States, but said the company remains “confident in our ability to outperform our end markets” and expects more share gains, “solid growth,” and cash flow generation in the year to come.

“While our year-over-year margins were impacted by the sharp appreciation of the Colombian peso during the second half of 2023, we delivered industry-leading adjusted EBITDA margins in excess of 35% for the year,” said José Manuel Daes, chief executive officer of Tecnoglass, in the firm’s results announcement.

“Our strong margin performance is attributable to our previously implemented high return automation and capacity enhancements as well as our disciplined cost control efforts,” he added. “Additionally, the structural enhancements in our business, along with our prudent working capital management, helped us generate another year of exceptional cash flow. Our solid capital position has given us flexibility to invest in further structural enhancements, increase our cash dividend, return value to our shareholders through share repurchases, and improve our leverage profile with net debt to adjusted EBITDA ending the year at a record low of 0.1x.”

Photo credit: Tecnoglass

The publication of the results will be followed by a webcast and conference call with management on March 1 at 8:30 a.m. (US Eastern Time) to add additional context and commentary.

The company provided the following details about how to access the call:

“To listen to the call and view the slides [online], please visit the ‘Investors section’ of Tecnoglass’ website. 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 1-877-269-7751 (domestic) or 1-201-389-0908 (international). Upon dialing in, please request to join the Tecnoglass Fourth Quarter 2023 Earnings Conference Call.

To listen to a telephonic replay of the conference call, dial toll-free 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and enter pass code 13744034. The playback can be accessed until June 1, 2024.”

(Photo credit: Tecnoglass)

In a writeup of the results, Forbes noted that most small cap companies have struggled throughout 2023, with the the Russell 2000 index being down by 2.8% year-to-date at publication time. Along with Tecnoglass, it also highlighted “other notables” Vita Coco and Build-A-Bear Workshop.

In terms of methodology, Forbes included the following info about how its ranking was conducted: “We screened nearly 1,000 companies with a market value between $300 million USD and $2 billion USD to find 389 companies that also had positive sales growth over the past 12 months and a share price of at least $5 … The stocks were ranked based on earnings growth, sales growth, return on equity, and total stock return for the latest 12 months available and over the last five years. We gave more weight to the latest year’s data in the ranking. All data is as of November 3, 2023.”

Tecnoglass celebrated its top spot in a press release. “Earning first place on the Forbes top 100 small cap list is an absolute honor and a testament to our company’s commitment to its investors, customers and talented employees,” said Tecnoglass CEO José Manuel Daes.

He added that, “we remain focused on leveraging our unique vertically integrated business model to execute our multi-pronged growth strategy and produce meaningful shareholder value.”

The Colombia-founded company only recently relocated its headquarters from Barranquilla to Miami in August, a move it said was made to better focus on clientele in the United States, which has long been the glassmaker’s top market.

Photo: Tecnoglass workers at the company’s plant in Barranquilla, Colombia. (Credit: Tecnoglass)

Photo: A Tecnoglass employee working within the company’s factory in Barranquilla, Colombia (Photo credit: Liliana Padierna)

The quarterly total revenue represents a 4.4% jump compared to the $201.8 million USD reported in the third quarter of 2022, growth that the firm says was driven by an increase in its multi-family/commercial business, growth in single-family residential business, and market share gains.

“Our record third quarter revenues and cash flow reflect strong performance in both our multi-family/commercial and single-family residential businesses as we continue to innovate and gain market share in key geographies,” said José Manuel Daes, CEO of Tecnoglass.

The executive also cited impact to the company’s margin from a “sharp and fast appreciation of the Colombian peso,” but noted that the adjusted EBITDA margin “remained in excess of 30%, attributable to our strategic facility investments and disciplined cost controls.”

Daes said the company’s capital position was key in fueling Tecnoglass’ facility investments and share repurchase program, while pointing toward more growth in the coming year. “As we look to the remainder of the year and into 2024, we remain confident in our ability to leverage our unique vertically integrated business model and execute against our multi-pronged growth strategy.”

Chief Financial Officer Santiago Giraldo expanded further on what the results may mean for the rest of 2023, projecting total-year revenues of between $835 million USD to $848 million USD.

“We see our business performing exceptionally well in a challenging market with share gains driving double-digit organic growth, strong Adjusted EBITDA margins, and substantial cash flow year-to-date,” he said in the statement.

He added that, “our backlog of multi-family/commercial projects has accelerated and our single-family residential expansion strategy continues to gain traction, which gives us confidence that 2024 will be another year of double-digit growth at attractive margins with significant cash flow generation.”

See the full third quarter results here.

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