Tecnoglass Reports Record Revenues and Gross Profit in 2023

Miami-based window and glass manufacturer Tecnoglass, Inc. (NYSE: TGLS) brought in a record $833.3 million USD in revenues in 2023, a 16% increase compared to 2022, in a watershed year that saw the Colombian-born firm relocate its headquarters to Miami.

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