Tecnoglass Reports Second Quarter 2024 Financial Results, Achieves Carbon Neutrality

Tecnoglass, Inc. (NYSE: TGLS), a manufacturer of high-end aluminum and vinyl windows and architectural glass, has released its financial results for the second quarter ending June 30, 2024. The company reported total revenues of $219.7 million, reflecting a 2.5% decrease from the previous year’s record of $225.3 million.

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.