Tecnoglass Inc. Q2 FY2025 earnings call

• Record second quarter total revenues of $255.5 million, up 16.3% YOY, driven by double-digit organic growth in single-family residential and multifamily commercial. • Single-family residential revenues reached a record $109.6 million, up 14.5% YOY, with 29% sequential growth in orders. • Multifamily and commercial revenues grew 17.8% YOY to $145.9 million, with a backlog at an all-time high of $1.2 billion. • Gross margin improved to 44.7%, a 400 basis point increase YOY, due to increased volumes, favorable mix, and cost control. • Completed Continental Glass Systems asset acquisition in April, strengthening capabilities in high-end architectural glass and glazing solutions. • Operating cash flow of $17.9 million in Q2, with robust liquidity including $137.9 million cash and $170 million availability under revolving credit facilities.

Tecnoglass' second quarter total revenues reached a record $255.5 million, up 16.3% year-over-year. The single-family residential business grew revenues 14.5% year-over-year to $109.6 million, representing a second quarter record. The multifamily and commercial businesses delivered solid growth of 17.8% year-over-year to $145.9 million. The single-family residential segment contributed 42.9% of total revenues ($109.6 million / $255.5 million), while the multifamily commercial segment contributed 57.1% ($145.9 million / $255.5 million).

• Revised full-year revenue guidance to $980 million to $1.02 billion, reflecting ~12% growth at midpoint. • Adjusted EBITDA guidance narrowed to $310 million to $325 million, offsetting $25 million full-year impact from input costs/tariffs. • Capital expenditures updated to $65 million to $75 million, reflecting tail end of previous investments and Continental acquisition expenditures. • Expect strong cash flow generation for the full year.

• Macro-economic uncertainty and higher cost environment. • Tariff impacts on select products, though supply chain diversification and pricing actions aim to mitigate. • External factors potentially impacting delivery timing.

Q: Julio Romero asked about revenue pull forward related to Section 232 and customer behavior.

A: Santiago Giraldo replied that pull forward was before May price increases, with most impacting Q3.

Q: Tim Wojs clarified on revenue pull forward and margin cadence.

A: Santiago Giraldo explained part of pull forward was in Q2, and gross margins modeled to be in line with YTD.

Q: Rohit Seth asked about July orders and vinyl product status.

A: Santiago Giraldo said July was a very strong month, and José Manuel Daes mentioned vinyl lines are selling in Western states and nearly complete by year-end.

Q: Jean Veliz inquired about opportunities outside Florida and commercial expansion.

A: José Manuel Daes and Santiago Giraldo noted expansion into new geographies with increased dealers and commercial projects in new states like Nashville, Austin, etc.